| Term | Definition |
|---|---|
| Book value |
An accounting measure stating the net worth of common equity according to a firm's balance sheet. |
| Broker |
An intermediary who gives search services to buyers and sellers of securities or assets. |
| Brokerage firm |
Financial institute that offers the service of trading securities. |
| Budget deficit |
The excess of government spending over tax receipts. Bull market. |
| Business cycle |
Fluctuations of GDP around its long-term trend, running through recession, trough, expansion and peak. Business risk. |
| CAC 40 |
The major 40 constituent stocks in Paris Stock Exchange. |
| Call option |
The right to buy equities at a specific price before a specified expiration date. |
| Call protection |
The period offered by the issuing company to investors promising not to buy back bonds. |
| Call risk |
The risk that the issuer buy back the securities earlier than expected. |
| Callable bond |
A kind of bond of which the issuer can buy back at a specific date and price. |
| Capacity utilization |
The percentage used by the British Federal Reserve to measure the industry’s capacity compared to the gross capacity. |
| Capital allocation decision |
The decision made to allocate capitals among different financial instruments. |
| Capital gain |
Gain from the difference between bid and offer prices. Capital market. |
| Capital structure |
The long-term financing of a company, including stocks and debts. |
| Cash break-even |
The point to distinguish the quantity change at which the operating cash flow can reduce to zero. |
| Glossary |
| Tutorial |
| Psychology |