A contra account is an account in the general ledger that offsets the balance of a related account. It is used to reduce the value of the associated account without directly altering its original balance. Contra accounts are commonly used…

Contrarian investing is an investment strategy that involves going against prevailing market trends or sentiment. Contrarian investors believe that the majority of investors often overreact to news, leading to mispriced securities. They seek to capitalize on these discrepancies by buying…

Convertible Bonds are debt securities that can be converted into a predetermined number of the issuer's equity shares, usually at the bondholder's discretion. This hybrid financial instrument offers features of both bonds and stocks, providing the bondholder with regular interest…

Convertible Preferred Stock refers to a type of preferred equity security that gives its holders the right to convert their preferred shares into a predetermined number of common shares, typically at the holder's discretion. This conversion feature allows investors to…

A corporation is a legal entity that is separate and distinct from its owners, known as shareholders. It has the ability to enter into contracts, sue and be sued, own assets, and incur liabilities. Corporations are created under the laws…

A correlation coefficient is a statistical measure that describes the strength and direction of a relationship between two variables. It ranges from -1 to 1, where: 1 indicates a perfect positive correlation: as one variable increases, the other variable also…

A cosigner is an individual who agrees to take responsibility for a loan or financial obligation alongside the primary borrower. The cosigner's creditworthiness can enhance the likelihood of loan approval, particularly for borrowers with limited credit history or lower credit…

Cost Advantage refers to the benefit a company gains by being able to produce goods or services at a lower cost than its competitors. This allows the company to either offer lower prices or maintain higher profit margins.Companies can achieve…

The Cost Approach Appraisal is a real estate valuation method that estimates the value of a property based on the cost to replace or reproduce it, minus any depreciation. This approach is particularly useful for properties that are not frequently…

Cost Cutting refers to the strategies and actions taken by organizations to reduce their expenses in order to improve profitability, efficiency, or financial health. This can involve reducing overhead costs, streamlining operations, or eliminating unnecessary expenditures. Examples: Eliminating non-essential staff…

Cost of Debt The cost of debt refers to the effective rate that a company pays on its borrowed funds. It represents the compensation that lenders demand for providing capital to the business and is typically expressed as an annual…

Cost of Equity is the return a company is expected to provide to its equity investors to compensate them for the risk they undertake by investing their capital. It represents the opportunity cost of investing in a particular company compared…

Cost of Funds refers to the interest rate or expense incurred by an entity for using borrowed funds. It is a critical measure for financial institutions and businesses, representing the cost associated with raising capital through loans, bonds, or other…

Cost of Goods Sold (COGS) The Cost of Goods Sold (COGS) refers to the direct costs attributable to the production of the goods sold by a company. This includes the cost of materials and labor directly used to create the…

Cost Per Thousand (CPM) refers to the advertising cost of reaching one thousand impressions or views of an advertisement. It is a standard metric used in digital marketing to measure the efficiency of advertising campaigns.CPM is calculated using the formula:CPM…

Cost-Volume-Profit Analysis (CVP) is a financial analysis tool that helps businesses understand the relationship between costs, sales volume, and profit. It allows management to determine how changes in costs and volume affect a company's operating income and net income. CVP…

The coupon rate is the annual interest rate paid by bond issuers to bondholders, expressed as a percentage of the bond's face value. It represents the fixed amount of interest that the bondholder receives periodically until the bond matures.For example,…

A Coverdell Education Savings Account (ESA) is a tax-advantaged savings account designed to help families save for education expenses. Contributions to a Coverdell ESA are not tax-deductible, but the earnings grow tax-free, and withdrawals are tax-free when used for qualified…

A covered call is an options trading strategy where an investor holds a long position in an asset (like stocks) and sells call options on that same asset. This strategy is typically employed to generate additional income from the asset…

CPA stands for Certified Public Accountant. It is a professional designation given to accountants who pass the CPA exam and meet additional state education and experience requirements. CPAs are authorized to perform accounting tasks that include auditing financial statements, tax…

CPU (Central Processing Unit) is the primary component of a computer that performs most of the processing inside the system. It interprets and executes instructions from programs, carrying out arithmetic, logic, control, and input/output operations specified by the instructions. The…

CRAB-17 CRAB-17 is a classification of a specific type of regulatory T cell that expresses the protein CRAB (Cytokine Response and Activation Binding) in response to inflammatory cytokines. These cells play a crucial role in immune regulation and are involved…

Credit refers to the ability of a borrower to obtain goods, services, or money with the understanding that payment will be made in the future. It is a financial arrangement that involves a lender providing resources to a borrower, who…

A credit report is a detailed record of an individual's credit history, prepared by a credit bureau. It includes information such as personal identification details, credit accounts, payment history, outstanding debts, and public records like bankruptcies or liens. Lenders use…

A credit score is a numerical representation of a person's creditworthiness, typically ranging from 300 to 850. It is based on the information in an individual's credit report, which includes their credit history, outstanding debts, payment history, types of credit…