Combined Ratio refers to a key financial metric used in the insurance industry to assess the profitability of an insurance company. It is calculated by adding the loss ratio and the expense ratio.The loss ratio measures the ratio of claims…

Commercial Banking Commercial banking refers to the financial services provided by banks to individuals, businesses, and government entities, focusing on accepting deposits, providing loans, and offering basic investment products. These banks are typically profit-driven institutions that aim to meet the…

Commodities are basic goods used in commerce that are interchangeable with other goods of the same type. They are often the building blocks for more complex goods and services. Commodities can be categorized into two main types: hard commodities, which…

Commodities trading refers to the buying and selling of physical goods or raw materials, known as commodities, in financial markets. This trading can occur in spot markets, where commodities are bought and sold for immediate delivery, or in futures markets,…

Commoditized refers to the process by which a product or service becomes indistinguishable from others in the market, leading to reduced differentiation and increased price competition. When a product is commoditized, it is viewed primarily as a basic good rather…

Competitive Advantage refers to the attributes or factors that allow an organization to outperform its competitors. This can be achieved through various means, such as superior quality, cost structure, brand reputation, technological innovation, or customer service.Examples: Cost Leadership: Walmart's ability…

A competitive moat refers to the unique advantages that a company possesses, which protect it from the competition and help maintain its market share and profitability over time. These advantages can stem from various sources, such as brand loyalty, proprietary…

Compound Annual Growth Rate (CAGR) is the rate at which an investment grows annually over a specified period of time, assuming the profits are reinvested at the end of each period. CAGR is a useful measure for evaluating the return…

Compound Interest refers to the interest calculated on the initial principal, which also includes all of the accumulated interest from previous periods. This means that interest is earned on both the original amount and the interest that has been added…

Computer Vision is a field of artificial intelligence that enables computers and systems to interpret and understand visual information from the world. By processing images and videos, computer vision allows machines to identify objects, track movements, and extract meaningful data.…

A Conditional Use Permit (CUP) is a zoning tool used by local governments to allow certain land uses that are not typically permitted within a zoning district, provided that specific conditions are met. This permit is intended to ensure that…

A confidence interval is a range of values, derived from a data set, that is likely to contain the true value of an unknown population parameter with a specified level of confidence, typically expressed as a percentage (e.g., 95% or…

Conglomerate: A conglomerate is a large corporation that consists of diverse businesses operating in various industries. This business structure allows a company to spread its risk across different sectors, potentially stabilizing its revenue and profit streams. Examples of conglomerates include:…

Conservatorship refers to a legal concept in which a court appoints an individual or organization (the conservator) to manage the financial and personal affairs of another person (the conservatee) who is deemed unable to do so due to physical or…

Constant Currency refers to the financial reporting method that eliminates the effects of currency fluctuations on revenue and expenses. This approach allows companies to assess the true growth or performance of their business by comparing results in a uniform currency…

Constructive Eviction Constructive eviction occurs when a landlord fails to maintain a rental property in a habitable condition, making it uninhabitable for the tenant. This legal concept allows tenants to terminate their lease and seek damages due to the landlord's…

The Consumer Price Index (CPI) is a statistical measure that examines the average change over time in the prices paid by consumers for a basket of goods and services. It is used to assess price changes associated with the cost…

Consumer-Packaged Goods (CPGs) refer to items that are sold quickly at a relatively low cost. These goods are typically items that are purchased frequently, consumed quickly, and require regular replenishment. CPGs are usually sold in retail stores and can include…

A contingent annuitant is an individual designated to receive annuity payments if the primary annuitant (the original recipient) passes away before the payments are fully distributed. This ensures that the annuity benefits continue to be paid out to another person,…

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…