Personal Finance terms starting with C

205 terms

CAC Digital Signature Verify that the identity on the CAC Card matches the identity of the expected signer.
Cafeteria plan Some employers offer cafeteria plans, more formally known as flexible spending plans, which give you the option of participating in a range of tax-saving…
Call In the bond markets, a call is an issuer's right to redeem bonds it has sold before the date they mature.
Call option Buying a call option gives you, as owner, the right to buy a fixed quantity of the underlying product at a specified price, called the strike price…
Callable bond A callable bond can be redeemed by the issuer before it matures if that provision is included in the terms of the bond agreement, or deed of trust.
Canceled Check (Share Draft) A check that a financial institution paid, charged to the account holder's account, and then endorsed. Once canceled, a check is no longer negotiable.
Cap A cap is a ceiling, or the highest level to which something can go. For example, an interest rate cap limits the amount by which an interest rate can be…
Capital Capital is money that is used to generate income or make an investment. For example, the money you use to buy shares of a mutual fund is capital that…
Capital Appreciation Any increase in a capital asset's fair market value is called capital appreciation.
Capital Gain Also known as capital appreciation, capital gain measures the increase in value of an asset over time.
capital gain (or loss) A income tax term referring to profit or loss resulting from the sale of an asset, such as a security.
Capital gains distribution When mutual fund companies sell investments that have increased in value, the profits, or capital gains, are passed on to their shareholders as capital…
Capital gains tax (CGT) A capital gains tax is due on profits you realize on the sale of a capital asset, such as stock, bonds, or real estate.
Capital loss When you sell an asset for less than you paid for it, the difference between the two prices is your capital loss.
Capital markets Capital markets are the physical and electronic markets where equity and debt securities, commodities, and other investments are sold to investors.
Capital preservation Capital preservation is a strategy for protecting the money you have available to invest by choosing insured accounts or fixed-income investments that…
Capitalization In the context of bank supervision, capitalization refers to the funds a bank holds as a buffer against unexpected losses.
Car insurance Car insurance covers theft of and damage to your car or damage that your car causes, plus liability protection in case you are sued as a result of an…
CARD Your card is the physical card, the account number, or any device (including a check) that can be used to access your credit card account.
Career SES Employee Career Senior Executive Service Employee.
Cash advance You receive a cash advance when you use your card or account to do any of the following: obtain cash from an automated teller machine (ATM); or obtain…
Cash balance plan A cash balance retirement plan is a defined benefit plan that has many of the characteristics of a defined contribution plan.
Cash basis accounting Cash basis accounting is one of two ways of recording revenues and expenses. Using this method, a company records income on its books when it receives a…
Cash equivalent Assets that can be quickly converted to cash. These include receivables, Treasury Bills, short-term commercial paper and short-term government and…
Cash Equivalents Instruments or investments that are easily turned into cash and are so safe that they are virtually as good as cash.
Cash Flow Cash flow is a measure of changes in a company's cash account during an accounting period, specifically its cash income minus the cash payments it makes.
Cash market In a cash market buyers pay the market price for securities, currency, or commodities "on the spot," just as you would pay cash for groceries or other…
Cash settlement To settle a futures contract where the underlying asset is a financial instrument, such as a stock index or interest rate rather than a physical…
Cash surrender value The cash surrender value of a permanent life insurance policy is the amount you receive if you cancel or surrender your policy before you die.
Cash value Cash value is the amount that an account is worth at any given time. For example, the cash value of your 401(k) or IRA is what the account is worth at the…
Cash value account If you have a permanent life insurance policy, part of each premium you pay goes into a tax-deferred account called the cash value account.
Cash-advance fee A fee charged when you use a credit card for a cash advance, such as withdrawing cash from an ATM.
Cash-out refinancing When refinancing, taking a loan for more than you owe on your existing mortgage.
Cashier's Check A check drawn on the funds of the bank, not against the funds in a depositor's account.
Catastrophic illness insurance Many health insurance policies cap, or limit, the amount they will pay to cover medical expenses.
Catch-up contribution You are entitled to make an annual catch-up contribution to your employer sponsored retirement savings plan and individual retirement account (IRA) if…
Category of Amount Reportable financial interests are disclosed either by actual amount or by category of amount, depending on the interest, as specified by the SF 278 form.
Ceiling If there is an upper limit, or cap, on the interest rate you can be charged on an adjustable-rate loan, it's known as a ceiling.
Census Tract A census tract is a small geographic area. Census 2000 assigned census tract numbers to all areas of the U.S. and some U.S. territories and possessions.
Central bank Most countries have a central bank, which issues the country's currency and holds the reserve deposits of other banks in that country.
Central Registration Depository (CRD) The Central Registration Depository (CRD) is an automated database maintained by NASD.
Certificate of Accrual on Treasury Securities (CATS) CATS are US Treasury zero-coupon bonds that are sold at deep discount to par, or face value.
Certificate of Deposit A negotiable instrument issued by a bank in exchange for funds, usually bearing interest, deposited with the bank.
Certificate of deposit (CD) CDs are time deposits. When you purchase a CD from a bank, up to $100,000 is insured by the Federal Deposit Insurance Corporation (FDIC).
Certificate of Divestiture The certificate of divestiture (CD) was created by the Ethics in Government Act of 1978 to reduce the tax burden of divestiture that can occur when an…
Certified Check A personal check drawn by an individual that is certified (guaranteed) to be good.
Certified Check, Treasurer's/Cashier or Other Official Check A Certified Check, Treasurer’s, Cashier or other official check is drawn against deposited funds to pay a specified sum of money to a specified person…
Chapter 13 Bankruptcy this type of bankruptcy sets a payment plan between the homeowner and the creditor monitored by the bankruptcy court.
Chapter 7 Bankruptcy a bankruptcy that requires assets be liquidated in exchange for the cancellation of debt.
Charge-off The balance on a credit obligation that a lender no longer expects to be repaid and writes off as a bad debt.
Charter Number A unique number assigned to the credit union by NCUA, You can find a specific credit union’s charter number by visiting, http://researchcu.ncua.
Check (Share Draft) A written order instructing a financial institution to pay immediately on demand a specified amount of money from the member's account to the person named…
Check 21 Act Check 21 is a Federal law that is designed to enable banks to handle more checks electronically, which is intended to make check processing faster and…
Check Deposit Return The fee that is charged to an account holder if a check that is deposited in the account is returned by the paying bank (because of insufficient funds…
Check hold When you deposit a check, your bank or other financial institution may delay crediting the money to your account during what's called the check hold…
Check truncation The conversion of data on a check into an electronic image after a check enters the processing system.
Checking account A demand deposit account subject to withdrawal of funds by check.
Checking Account (Share Draft Account) A demand deposit share account subject to withdrawal of funds by check. Credit unions refer to a checking account as a share draft account.
ChexSystems The ChexSystems, Inc. network is comprised of member financial institutions that regularly contribute information on mishandled checking and savings…
Churning Excessive buying and selling in a customer's account undertaken to generate commissions for the broker.
Circuit breaker After the stock market crash of 1987, stock and commodities exchanges established a system of trigger-point rules known as circuit breakers.
Citizen or Resident Test Assuming all other dependency tests are met, the citizen or resident test allows taxpayers to claim a dependency exemption for persons who are U.S.
Claim Your request for the insurance company to pay you an amount under the terms of your policy.
Claims Procedure Act Effective July 1, 2003, The South Carolina Retirement Systems Claims Procedure Act provides remedies available in a dispute or controversy between the…
Clearance Clearance is the first half of the process that completes your order to buy or sell a security.
Clearing firm Clearing firms handle the back-office details of securities transactions between broker-dealers, making the settlement process streamlined and efficient.
Clearinghouse Clearing corporations, or clearinghouses, provide operational support for securities and commodities exchanges.
Closed-end fund Closed-end mutual funds are actively managed funds that raise capital only once, by issuing a fixed number of shares.
Closed-End Loan Generally, any loan in which the amount advanced, plus any finance charges, is expected to be repaid in full by a specified date.
Closely held A closely held corporation is one in which a handful of investors, often the people who founded the company, members of the founders' families, or…
Closing when selling a house, the process of transferring ownership from the seller to the buyer, the disbursement of funds from the buyer and the lender to the…
Closing (or settlement) costs Fees paid when you close (or settle) on a loan. These fees may include application fees; title examination, abstract of title, title insurance, and…
Closing a Mortgage Loan The consummation of a contractual real estate transaction in which all appropriate documents are signed and the proceeds of the mortgage loan are then…
Closing Costs The expenses incurred by sellers and buyers in transferring ownership in real property.
Closing Costs or Settlement Fees Fees paid to effect the closing of a mortgage. (Such as points, title fees, survey fees, etc.)
Closing or Settlement The meeting between the seller, buyer and closing attorney when the property legally changes hands, the transaction is legally closed, or both.
Closing price The closing price of a stock, bond, option, or futures contract is the last trading price before the exchange or market on which it is traded closes for…
Closing Statement A closing statement, also called a HUD1 or settlement sheet, is a legal form your closing or settlement agent uses to itemize all of the costs you and the…
Closing Statement or Settlement Statement This is a document prepared by the Title Company that details the final and specific costs involved for both the buyer and seller in a real estate…
Co-applicant Ethnicity Ethnicity of the co-applicant. This is reported for originated loans and for loan applications that do not result in an origination.
Co-applicant Race Race of the co-applicant. This is reported for originated loans and for loan applications that do not result in an origination.
Co-applicant Sex Sex of the co-applicant. This is reported for originated loans and for loan applications that do not result in an origination.
Co-Homeowners one or more persons who have signed a loan note, and are equally responsible for repaying the loan.
Co-Maker A person who signs a note to guarantee a loan made to another person and is jointly liable with the maker for repayment of the loan.
Co-Signer An individual who signs the note of another person as support for the credit of the primary signer and who becomes responsible for the obligation.
Coinsurance When your healthcare insurance has a coinsurance provision, you and your insurer divide the responsibility for paying doctor and hospital bills by…
Collateral Assets that are offered to secure a loan or other credit. For example, if you get a real estate mortgage, the bank's collateral is typically your house.
Collateralized Mortgage Obligation (CMO) Mortgage-backed securities, segmented into tranches, so that investors can choose a tranche that fits their desired timing of payments.
Collectible Collectibles include virtually any items of personal property that are unique, limited in quantity, antique, or hold special quality or personal…
Collection Agency A company hired by a creditor to collect a debt that is owed. Creditors typically hire a collection agency only after they have made efforts to collect…
Collections the efforts a lender takes to collect past due payments.
CollegeSureÃÂ® CD CollegeSureÃÂ® CDs are certificates of deposit designed to let you prepay future college costs at today's rates, plus a premium based on the child's…
Combined Loan-to-Value (CLTV) The relationship of the outstanding balances of a first and second mortgage to the value of the home used to determine the maximum percentage of value…
Commercial bank Commercial banks offer a full range of retail banking products and services, such as checking and savings accounts, loans, credit cards, and lines of…
Commercial Paper Short-term, unsecured, discounted notes issued by institutional borrowers and sold to investors for short term cash investment needs.
Commission A portion of the policy premium that is paid to an insurance producer (agent) by the insurance company as compensation for the producer’s work.
Commitment An offer to grant a mortgage loan which outlines the terms, the amount of the loan, the interest rate and any conditions that the commitment or approval…
Committee on Uniform Securities Identifying Procedures (CUSIP) The Committee on Uniform Securities Identifying Procedures (CUSIP) assigns codes and numbers to all securities traded in the United States.
Commodity Commodities are bulk goods and raw materials, such as grains, metals, livestock, oil, cotton, coffee, sugar, and cocoa, that are used to produce consumer…
Commodity Futures Trading Commission (CFTC) The CFTC is the federal agency that regulates the US futures markets, as the Securities and Exchange Commission (SEC) regulates the securities markets.