CoinsuranceWhen your healthcare insurance has a coinsurance provision, you and your insurer divide the responsibility for paying doctor and hospital bills by…
CollateralAssets 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)(CMO)Mortgage-backed securities, segmented into tranches, so that investors can choose a tranche that fits their desired timing of payments.
CollectibleCollectibles include virtually any items of personal property that are unique, limited in quantity, antique, or hold special quality or personal…
Collection AgencyA 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…
Collectionsthe efforts a lender takes to collect past due payments.
CollegeSureî CDCollegeSureî 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)(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 bankCommercial banks offer a full range of retail banking products and services, such as checking and savings accounts, loans, credit cards, and lines of…
Commercial PaperShort-term, unsecured, discounted notes issued by institutional borrowers and sold to investors for short term cash investment needs.
CommissionA portion of the policy premium that is paid to an insurance producer (agent) by the insurance company as compensation for the producer’s work.
CommitmentAn 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…
CommodityCommodities 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.
Common Access Card (CAC)An Agency smartcard issued as standard identification for agency personnel, selected reserve personnel, civilian employees, and eligible contractor…
Common StockWhen you own common stock, your shares represent ownership in the corporation and give you the right to vote for the company's board of directors and…
Community propertyIn nine US states, any assets, investments, and income that are acquired during a marriage are considered community property, or owned jointly by the…
Competitive traderCompetitive traders, also known as registered competitive traders or floor traders, buy and sell stocks for their own accounts on the floor of an exchange.
CompleteThe review status of a financial disclosure report whose required reviews are finished and has all the required eSignatures.
Composite tradingComposite trading figures report end-of-day price changes, closing prices, and the daily trading volume for stocks, warrants, and options listed on a…
Compound InterestCompound interest is the interest paid on a deposit or share account, which is added to the account balance at the end of the dividend period.
CompoundingThe process by which income is earned on income that has previously been earned.
Comptroller of the CurrencyThe Office of the Comptroller of the Currency, housed in the US Department of the Treasury, charters, regulates, and oversees national banks.
compulsory payroll taxAn automatic tax collected from employers and employees to finance specific programs.
Conduit IRAA conduit IRA is another name for a rollover IRA, which you establish with money you roll over from a 401(k), 403(b), or other retirement savings plan.
confirmationThis written notice provided by a brokerage acknowledges completion of a securities transaction.
Conforming LoanA loan which meets all requirements to be eligible for purchase or securitization by FNMA or FHLMC (Fannie Mae or Freddie Mac) which has a loan amount…
ConglomerateA conglomerate is a corporation whose multiple business units operate in different, often unrelated, areas.
Conscience fundConscience funds, also known as socially responsible funds, allow you to invest in companies whose business practices are in keeping with your personal…
Consensus recommendationA consensus recommendation for an individual stock compiles ratings from a number of analysts who track that stock.
ConservatorshipConservatorship is a legal procedure for the management of financial institutions for an interim period during which the institution’s conservator…
Construction LoanA short-term, interim loan that provides disbursements to facilitate the construction of a home. Funds are disbursed at intervals as work progresses.
ConsumerAny natural person obligated or allegedly obligated to pay a debt incurred for personal, family or household use.
Consumer confidence indexThe consumer confidence index is released each month by the Conference Board, an independent business research organization.
Consumer Credit Counseling ServiceA service which specializes in working with consumers who are overextended with debts and need to make arrangements with creditors.
Consumer price index (CPI)The consumer price index (CPI) is compiled monthly by the US Bureau of Labor Statistics and is a gauge of inflation that measures changes in the prices of…
Consumer Reporting AgencyAn agency that regularly collects or evaluates individual consumer credit information or other information about consumers and sells consumer reports for…
ConsummationThe point in time when the contractual relationship between borrower and lender begins.
ContangoThe price of a futures contract tends to reflect the cost of storage, insurance, financing, and other expenses incurred by the producer as the commodity…
Contingency orderA contingency order to buy or sell a security or other investment product is one that has strings attached.
Contingent BeneficiaryA contingent beneficiary receives the proceeds of an insurance policy, term-certain annuity, individual retirement account (IRA), employer-sponsored…
Contingent deferred sales loadA contingent deferred sales load, also called a back-end load, is a sales charge some mutual funds impose when you sell shares in the fund within a…
Continuous net settlementIn continuous net settlement, most securities transactions are finalized, or cleared and settled, within a brokerage firm.
ContrarianAn investor who marches to a different drummer is sometimes described as a contrarian.
Conventional Conforming Mortgage LoansConventional mortgage loans are those mortgages that are not insured or guaranteed by the Federal Housing Administration, the U.S.
Conventional Fixed Rate MortgageA fixed-rate mortgage offers you a set interest rate and payments that do not change throughout the life, or "term," of the loan.
Conventional MortgageA mortgage loan which is not insured or guaranteed by a government agency such as FHA or VA.
Conversion priceA conversion price is the predetermined price, set at the time of issue, at which you can exchange a convertible bond or other convertible security for…
Convertible ARMis an Adjustable Rate Mortgage loan that can be converted into a fixed-rate mortgage during a certain time period.
Convertible bondConvertible bonds are corporate bonds that give you the alternative of converting their value into common stock of that company or redeeming them for cash…
Convertible hedgeWhen you use a convertible hedge, you buy a convertible bond, which you can exchange under certain circumstances for shares of the company's common stock.
Convertible termA convertible term life insurance policy can be converted into a permanent life policy at some point in the future without requiring you to pass a health…
Cook the booksWhen a company cooks the books, it is deliberately - and illegally - providing false information about its financial situation to bolster its stock price…
Cooling-off periodIn the financial industry, a cooling-off period applies when a new issue is being brought to market.
Cooperative (Co-op)A co-op is a corporation that owns a particular residential property. The shareholders are the tenants who, instead of owning an individual unit, own…
CopaymentIf you have a managed-care health insurance plan, your copayment is the fixed amount you pay - often $10 to $25 - for each in-network doctor's office…
Core earningsStandard & Poor's (S&P) developed the core earnings measure to give investors a more uniform way to compare earnings numbers.
Cornering the marketIf someone tries to buy up as much of a particular investment as possible in order to control its price, that investor is trying to corner the market.
Corporate BondA debt obligation issued by a corporation.
CorrectionA correction is a drop - usually a sudden and substantial one of 10% or more - in the price of an individual stock, bond, commodity, index, or the market…
Correlated SystemsSCRS and PORS are correlated systems. If a member has contributions in more than one of these retirement systems, the member’s service credit is…
CorrelationIn investment terms, correlation is the extent to which the values of different types of investments move in tandem with one another in response to…
CorrespondentA correspondent is a financial institution, such as a bank or brokerage firm, that handles transactions on behalf of another financial institution that it…
CosignerAnother person, not necessarily a relative, who also signs your loan contract and assumes equal responsibility for its repayment.
Cost basisThe cost basis is the original price of an asset - usually the purchase price plus commissions.
Cost-of-Living AdjustmentAn adjustment of a salary or a retirement annuity intended to help offset the effects of inflation. Commonly referred to as COLA. COLAs are not guaranteed.
Cost-of-living adjustment (COLA)A COLA results in a wage or benefit increase that is designed to help you keep pace with increased living costs that result from inflation.
Council of Economic Advisors (CEA)The Council of Economic Advisors' job is to assist and advise the president of the United States on economic policy.
Countercyclical stockStocks described as countercyclical tend to continue to maintain their value and provide regular income when the economy is slowing down or staying flat…
CounterpartyIn any financial contract, the persons or institutions entering the contract on the opposite sides of the transaction are called the counterparties.
Counterparty riskCounterparty risk is the risk that the person or institution with whom you have entered a financial contract - who is a counterparty to the contract -…
County CodeA three-digit FIPS (Federal Information Processing Standards) code that identifies the county where the property is located.
CouponA certificate that accompanies a bond that indicates the amount of interest it pays and the date it is due.
Coupon RateThe scheduled interest earned on a security, expressed as a percentage of the outstanding balance.
Coverdell Education Savings AccountFormerly called education IRA. An education account that accumulates interest tax-free. You can also withdraw money from this account without penalty.)
Covered optionWhen you sell call options on stock that you own, they are covered options. That means if the option holder exercises the option, you can deliver your…
CrashA crash is a sudden, steep drop in stock prices. The downward spiral is intensified as more and more investors, seeing the bottom falling out of the…
CreditCredit generally refers to the ability of a person or organization to borrow money, as well as the arrangements that are made for repaying the loan and…
Credit ApplicationA form to be completed by an applicant for a credit account, giving sufficient details (residence, employment, income, and existing debt) to allow the…
Credit BureauAn agency that collects individual credit information and sells it for a fee to creditors so they can make a decision on granting loans.
Credit Bureausor “consumer reporting agencies,” are companies that compile credit reports, and supply credit information to businesses upon request.
Credit CardA plastic card with a magnetic stripe that is used from time to time or over and over again to borrow money or buy goods or services on credit, and which…
Credit Card Account AgreementA written agreement that explains the terms and conditions of the account, credit usage and payment by the cardholder, and duties and responsibilities of…
Credit card agreementA document that outlines the terms and conditions for using your credit card. It is your contract with your credit card company.
Credit Card IssuerAny financial institution that issues bank cards to those who apply for them.
Credit counseling serviceA service that employs credit counselors who will look at your financial situation and help develop repayment options.
Credit Disability Insurance (CDI)(CDI)A type of insurance, also known as accident and health insurance, that makes payments on the loan if you become ill or injured and cannot work.
Credit HistoryA record of an individual’s or company’s past borrowing and repaying behavior maintained by an independent credit reporting agency.
Credit Life & Disability InsuranceInsurance offered to loan and credit card customers that will pay the monthly payments on their debt if they become disabled or the balance of their debt…
Credit Life Insurance (CLI)(CLI)A type of life insurance that helps repay a loan if you should die before the loan is fully repaid. CLI is optional coverage.
Credit limitThe maximum amount of credit that is available on a credit card or other line of credit account.
Credit LineA credit line, or line of credit, is a revolving credit agreement that allows you to write checks or make cash withdrawals of amounts up to your credit…
Credit Pre-ApprovalA process in which an individual can apply for a credit approval decision before he/she actually finds a home and enters into a Purchase and Sales…
Credit ratingYour credit rating is an independent statistical evaluation of your ability to repay debt based on your borrowing and repayment history.
Credit Repair OrganizationA person or organization that sells, provides, performs, or assists in improving a consumer's credit record, credit history or credit rating (or says that…
Credit ReportA detailed report of an individual's credit history prepared by a credit bureau and used by a lender in determining a loan applicant's creditworthiness.
Credit Reportsor “consumer reports,” contain information about your credit worthiness. Information is kept on file with a credit bureau and will display data about…
Credit ScoreA number, roughly between 300 and 800, that measures an individual's credit worthiness. The most well-known type of credit score is the FICOî score.