Capital Account Deficit A capital account deficit occurs when a country’s or entity’s outflow of capital to foreign locations exceeds the inflow of capital from abroad. In a business context, it refers to a situation where a company’s investments in and contributions to its assets are less than the withdrawals or distributions made to its
Tag: Investing & Finance Glossary Terms: C
What Is a Canceled Check?
Canceled Check A canceled check is a check that has been paid or cleared by the bank upon which it was drawn and has been marked as “canceled” once the transaction is complete. This means the check has been processed, the funds have been transferred from the payer’s account to the payee’s account, and the
What Is a Callable Obligation?
Callable Obligation A callable obligation is a financial instrument or debt security that gives the issuer the right, but not the obligation, to repay the principal before the scheduled maturity date. This feature is typically embedded in bonds or loans, providing issuers with flexibility to manage their debt portfolio according to changes in interest rates
What Is a Call Option?
Call Option A call option is a financial contract that gives the buyer the right, but not the obligation, to buy a specific amount of an underlying asset, such as shares of stock, at a predetermined price (the strike price) within a specified time frame. The seller of the call option is obligated to sell
What Is a Call Feature?
Call Feature A call feature is a provision in the terms of a bond or other fixed-income security that allows the issuer to repurchase or “call” the security before its maturity date, usually at a predetermined price. This feature provides issuers with the flexibility to adjust their debt obligations in response to changes in interest
What Is a Calendar Year?
Calendar Year A calendar year is the period starting from January 1st and ending on December 31st, encompassing a full 12 months according to the Gregorian calendar. It is commonly used for civil purposes, including statutory and administrative tasks, as well as by individuals and organizations for planning and aligning activities with societal norms. In
What Is a Cafeteria Plan?
Cafeteria Plan A cafeteria plan, also known as a Section 125 plan, is a type of employee benefit plan offered by employers that allows employees to choose from a variety of pre-tax benefit options to create a benefits package that best meets their individual needs. \These plans can include health insurance, retirement savings options, and
What Is a C-Corporation?
C-Corporation A C-Corporation, often simply called a “C-Corp,” is a legal structure for a corporation in which the owners, or shareholders, are taxed separately from the entity. C-Corps are subject to corporate income tax on their profits, and any dividends paid to shareholders are also taxed at the individual level, leading to what is commonly