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GlossaryCabinet crowd- in this procedure, the NYSE team trades bonds with a comparatively low daily volume. Cabinet security- a stock or a bond which is listed amongst the major exchanges and also has a low daily volume of trade. Cable- the exchange rate between the U.S dollar and the Pound sterling of U.K CAC 40 index- a broad index which boasts of about 40 of the top 100 largest companies in the forward segment of the Paris Bourse. Cage- in a brokerage firm, there is a section dedicated to the receiving and the disbursing of funds. It is called as a cage. Calendar- broadly classified as a list or information of new issues slotted to come to the market soon. Calendar effect- the tendency of stocks to fluctuate and behave differently at different intervals of time is known as calendar effect. Calendar spread- it is an interesting process by virtue of which the sale and purchase of the products of the same class takes place amidst the same prices but with different expiration dates. Call- An option by virtue of which a holder has the right to buy an underlying asset. Call date- it is a date which is set prior to maturity, and during which the issues of a bond may surrender part of the bond for a specified call price. Call feature- an agreement between the buyer of the bond and the issuer pertaining to the schedule and the price of redemption before its maturity. Call loan- a loan which can be repaid on demand is known as a call loan. It is also known as broker loan. Call money rate- it is basically nothing but the rate of interest the bank charges a broker to help finance margin loans required by investors. Call option- it is an option that gives its holder a special right to purchase any number of shares of a specific underlying stock at a given strike price on a specified expiration date. Call premium- there is a particular par value associated with a bond of preferred stock. It is paid to the holders to redeem the share before its actual maturity. The premium levied on that sum is called call premium. Call price- the price which is specified at the time of issue, by virtue of which the issuer may surrender the bond at a specific rate. Call protection- A feature of some callable bonds for an initial period, which implies that the bond may not be called. |
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