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A legal document creating a corporation.
Corporate finance
One of the three areas of the discipline of finance. It deals with the operation of the firm (both the investment
decision and the financing decision) from that firms point of view.
Corporate financial management
The application of financial principals within a corporation to create and maintain value through decision
making and proper resource management.
Corporate financial planning
Financial planning conducted by a firm that encompasses preparation of both long-and short-term financial
plans.
Corporate processing float
The time that elapses between receipt of payment from a customer and the depositing of the customers
check in the firms bank account; the time required to process customer payments.
Corporate repurchase
Used in the context of general equities. Active buying by a corporation of its own stock in the marketplace.
Reasons for doing so include putting unused cash to use, raising E.P.S., creating support for their stock
price, increasing internal control (shark repellant), stock for E.S.O.P. or pension plans. Subject to rules, such
as that buying must be on a zero minus or a minus tick, after the opening and before 3:30 p.m.
Corporate taxable equivalent
Rate of return required on a par bond to produce the same after-tax yield to maturity that the quoted
premium or discount bond would generate.
Corporate tax view
The argument that double (corporate and individual) taxation of equity returns makes debt a cheaper
financing method.
Corporation
A legal person that is separate and distinct from its owners. A corporation is allowed to own assets, incur
liabilities, and sell securities, among other things.
Correction
Used in the context of general equities. Reverse movement, usually downward, in the price of an individual
stock, bond, commodity, or glossary. If prices have been rising on the market as a whole, then fall dramatically,
this is know as a correction within an upward trend. Antithesis of a technical rally. See: dip, break.
Correlation
Applies to derivative products. Statistical measure of the degree to which the movements of two variables
(stock/option/convertible prices or returns) are related. See: Correlation coefficient.
Correlation coefficient
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