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Contribution margin
The difference between variable revenue and variable cost.
Control
50% of the outstanding votes plus one vote.
Controlled disbursement
A service that provides for a single presentation of checks each day (typically in the early part of the day).
Controlled foreign corporation (CFC)
A foreign corporation whose voting stock is more than 50% owned by U.S. stockholders, each of whom
owns at least 10% of the voting power.
Controller
The corporate manager responsible for the firms accounting activities.
Convenience yield
The extra advantage that firms derive from holding the commodity rather than the future.
Conventional mortgage
A loan based on the credit of the borrower and on the collateral for the mortgage.
Conventional pass-throughs
Also called private-label pass-throughs, any mortgage pass-through security not guaranteed by government
agencies. Compare agency pass-throughs.
Conventional project
A project with a negative initial cash flow (cash outflow), which is expected to be followed by one or more
future positive cash flows (cash inflows).
Convention statement
An annual statement filed by a life insurance company in each state where it does business in compliance
with that states regulations. The statement and supporting documents show, among other things, the assets,
liabilities, and surplus of the reporting company.
Convergence
The movement of the price of a futures contract toward the price of the underlying cash commodity. At the
start, the contract price is higher because of time value. But as the contract nears expiration, and time value
decreases, the futures price and the cash price converge.
Conversion factors
Rules set by the Chicago Board of Trade for determining the invoice price of each acceptable deliverable
Treasury issue against the Treasury Bond futures contract.
Conversion parity/value
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