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CBOE
(Chicago Board Options Exchange)
Exchange in which options are traded.
See: Options
CBT
(Chicago Board Of Trade)
Exchange in which futures--such as corn, gold, silver and wheat--and futures
options are traded.
See: Futures
Contract; Futures
Market
CD
(Certificate Of Deposit)
A money market instrument issued by banks that has a set interest rate
and maturity date. CDs may be issued for as low as $100. CDs that are
in denominations of $100,000 or more are called "jumbo CDs."
Maturities can range from a few weeks to several years.
See: Brokered
CD; Jumbo
Certificate Of Deposit; Maturity
Date; Money
Market
Certificate
The actual paper evidencing ownership of a security. The certificate states
the issuer's name, amount of shares, shareholder's rights, the issue's
par value (or declaration of no par value) and any responsibilities of
the issuer. Certificates may be issued in registered or bearer form.
See: Issuer;
Par
Value; Registered
Security; Shareholder
Certificateless
Municipal
A municipal bond in which one certificate represents the entire issue.
The bondholder does not receive a certificate of ownership. The benefit
of certificateless municipals is that investors do not have to transfer
certificates when they sell the bonds.
See: Book-Entry
Securities; Certificate; Municipal
Bond
Certificate
Of Deposit (CD)
A money market instrument issued by banks that has a set interest rate
and maturity date. CDs may be issued for as low as $100. CDs that are
in denominations of $100,000 or more are called "jumbo CDs."
Maturities can range from a few weeks to several years.
See: Brokered
CD; Jumbo
Certificate Of Deposit; Maturity
Date; Money
Market
Chartist
Technical analyst who believe recurrent trading patterns can assist them
in forecasting future price movements. The analyst will plot the patterns
of stocks, bonds and commodities to formulate buy and sell recommendations
for clients.
See: Technical
Analysis
Chicago
Board Options Exchange (CBOE)
Exchange in which options are traded.
See: Options
Chicago
Board Of Trade (CBT)
Exchange in which futures--such as corn, gold, silver and wheat--and futures
options are traded.
See: Futures
Contract; Futures
Market
Chicago
Mercantile Exchange
Exchange in which foreign currency futures and futures options are traded.
Amongst others, some examples are the British pound, Canadian dollar,
French franc, and the Japanese yen. In addition, futures and futures options
are traded on such vehicles as indexes, live cattle, pork bellies and
lumber.
See: Futures
Contract; Index;
Options
Cincinnati
Stock Exchange (CSE)
The first completely automated stock exchange that transacts members'
orders without having an actual trading floor. Orders are placed and executed
via computers.
See: Floor;
Over
The Counter; Stock
Exchange
Circuit
Breakers
Procedures established to forestall the market from spiraling down. Circuit
breakers will "kick-in" when the market has dropped by a specific
amount within a certain period. At that time, the major stock and commodities
exchanges will temporarily stop trading in stocks and stock index futures
to give floor traders time to rebalance buy and sell orders. Circuit breakers
were introduced in 1987 after Black Monday. The levels were revised when
the market had another steep drop in October 1989.
See: Black
Monday; Floor
Trader; Program
Trading; Stock
Exchange
Classified
Stock
Equity that is divided into more than one type of common stock, usually
designated as Class A and Class B. The differences between the classes
are designated in a corporation's charter and bylaws. Class A usually
has an advantage in terms of voting power, although additional dividend
and liquidation privileges may also be granted. Class B stock was formed
primarily as a means of preserving control as Class B stock usually carries
limited voting powers.
See: Common
Stock; Liquidation;
Voting
Right
Class
Of Option
Option contracts of the same type and underlying security. If the option
class also has the same exercise price and expiration date, it is called
an "option series."
See: Exercise
Price; Expiration
Date; Option
Series; Options;
Strike
Price
Close
A Position
The elimination of an investment from a portfolio. If the security is
a long position, the investment is sold. If the security is a short position,
the investment is bought.
See: Closing
Transaction; Long
Position; Portfolio;
Short
Position
Close,
The
At the end of a trading session, the final trade in a security.
See: Closing
Price; Opening,
The
Closed
End Indenture
A secured bond indenture that does not allow collateral to be repledged
for issuance of additional bonds.
Closed
End Fund
An investment company that issues a fixed number of shares and is usually
listed on a stock exchange. An investor who wishes to buy shares must
purchase them from investors who wishes to sell their shares. They do
not deal with the investment company directly.
See: Closed
End Management Company; Dual
Purpose Investment Company; Investment
Company; Open
End Management Company
Closed
End Management Company
Term used interchangeably with "closed-end fund." It is an investment
company that issues a fixed number of shares and is listed on a major
stock exchange. An investor who wishes to buy shares must purchase them
from an investor who wishes to sell their shares. They do not deal with
the investment company directly.
See: Closed
End Fund; Investment
Company; Open
End Management Company
Closed
Fund
An open-end mutual fund that has grown so large that it no longer will
issue new shares. However, some funds will allow investors, who are already
shareholders, to purchase additional shares.
See: Investment
Company; Mutual
Fund; Open
End Management Company
Close-Out
The liquidation of a client's position because the client has not met
a margin call that was generated because of a margin purchase or a short
sale.
See: Close
A Position; Frozen
Account; Liquidation;
Margin;
Margin
Call; Selling
Short; Sell
Out Procedures
Closing
Price
At the end of a trading session, the price of the final trade in a security.
See: Close,
The
Closing
Purchase
An option writer's (seller) purchase of an option that has the same features
(series) of the option previously sold to affect a liquidation of the
writer's position. When an option writer sells an option, it is said that
the trade is a "sell to open." When closing the position, the
writer places an order to "buy to close."
See: Liquidation;
Options;
Option
Series; Option
Writer
Closing
Quote
The last bid and offer prices recorded by a market maker or specialist
at the trading day's close.
See: Closing
Sale; Market
Maker; Specialist
Closing
Sale
A sale of an option that has the same features (series) as an option previously
purchased to affect a liquidation of the option position. When an investor
wishes to buy an option, the order is placed as a "buy to open."
Conversely, when closing the position, the investor places an order to
"sell to close."
See: Closing
Transaction; Options;
Option
Series
Closing
Transaction
An option that is purchased or sold to eliminate an existing long or short
position.
See: Closing
Purchase; Closing Sale; Long
Position; Options;
Short
Position
CMV
(Current Market Value)
The worth of all positions in a client's brokerage account. To determine
the portfolio's current market value, stocks and listed bonds are valued
at their closing prices. For over-the-counter securities, the bid is used.
See: Closing
Price; Long
Market Value; Over
The Counter; Over
The Counter Securities; Short
Market Value
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