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C

Cancellation
Voiding of a document by defacement, perforation or other means, whereby restoration is made possible; as an investment reference, it is termination of an insurance contract prior to the end of the policy period
Capital
Physical equipment (buildings, equipment, human skills) used in the production of goods and services (also used to refer to corporate equity, debt securities, and cash)
Capital asset
Asset that is purchased for long-term use such as machinery and equipment
Capital gain
When a stock is sold for a profit, it's the difference between the net sales price of securities and their net cost, or original basis; if a stock is sold below cost, the difference is a capital loss
Capital market
Market in which corporate equity and longer-term debt securities (those maturing in more than one year) are issued and traded
Capitalism
Economic system in which the means of production are privately-owned and controlled and which is characterized by competition and the profit motive
Carrier
An insurance company or insurer
Cash accounting
Simplest form of accounting in which income is considered earned when received and expenses are not taken into account until paid
Cash flow
In investments, it represents earnings before depreciation, amortization and non-cash charges; also called cash earnings
Cash value
Amount of money one is paid at any given time if whole life policy is canceled; also the amount that can be borrowed from the policy or its loan value
Central bank
Principal monetary authority in the U.S.; responsible for such key functions as issuing currency and regulating the supply of credit in the economy
Certificate of deposit (CD)
Time deposit, FDIC insured to $100,000 per person ($250,000 on retirement accounts), with a fixed maturity date, typically from three months to five years; it usually pays higher interest than a savings account, and a penalty is charged for withdrawing funds before the maturity date
Certificate of insurance
Certifies to the certificate holder that the policy indicated is in force as of the dates shown on the certificate
Certified lenders
Banks that participate in the SBA's guaranteed loan program
Civil service
Civil service employment encompasses employment in Federal, state and local governmental agencies
Claim
Amount requested by a policyholder or third party from an insurance company for losses covered by an insurance policy
Claimant
Person requesting an amount for covered losses from the insurer; insured or a third party may be the claimant
Coinsurance
Insurance held jointly by two or more insurers
Collateral
Asset that can be sold for cash and has been pledged to a creditor to secure a future obligation (i.e. if one finances a car, it is the collateral for the loan)
Collision coverage
Optional automobile insurance coverage for direct and accidental loss to or caused by the covered auto, resulting from upset of the auto or its impact with another vehicle or object
Commercial credit
A bank loan to a company; also called commercial lending or business credit
Commission
Fee investor pays a broker for buying or selling securities
Common shares
Securities that represent equity ownership in a company; lets an investor vote on such matters as the election of directors; gives the holder a share in a company's profits via dividend payments or the capital appreciation of the security
Competitive service
Applicants for jobs in the competitive service compete with other applicants for civil service jobs usually by taking a written examination
Compounding
Also known as compound interest, ability of an asset to generate earnings, which are then reinvested in order to generate their own earnings
Comprehensive coverage
Broad coverages or an extensive amount of insurance coverage under one insurance contract; in auto insurance, may cover physical damage losses to an insured vehicle other than those caused by collision or upset
Concurrent insurance
Insurance under two or more contracts, covering the same exposure and for the same policy period
Conditions
Section of an insurance policy which explains duties and responsibilities of the insured and the insurer
Consultant
Someone brought in for a limited time to solve one or more specific problems; often used interchangeably with the terms independent contractor, freelancer and vendor
Consumer credit
Debt incurred or the purpose of purchasing a good or service; includes purchases made on credit cards, lines of credit and some loans; also referred to as consumer debt
Consumer price index (CPI)
Measures the prices of consumer goods and services and is a measure of the pace of U.S. inflation; published monthly by the U.S. Department of Labor
Continuous insurance
Policyholders who are described as continuously insured have been covered by one or more insurance companies without any lapse in coverage
Contract
Agreement between two (or more) parties in which each promises to perform in some way; can be complex and should always be reviewed by an attorney; may not be binding if not correctly drafted and executed
Contract employee
Works for an agency that contracts out their work to various employers; agency usually provides Worker's Compensation insurance and withholds taxes
Contract of insurance
Legal and binding contract in which the insurance company agrees to cover the insured's losses, provide other benefits or render services to or on behalf of the insured
Copyright
Form of protection provided by U.S. laws to authors of "original works of authorship," including literary, dramatic, musical, artistic and certain other intellectual works; available for all unpublished works, regardless of the nationality or domicile of the author
Cover letter
Accompanies rèsumè; highlights one or two skills in order to show how one can fill a prospective employer's needs
Coverage exclusions
Items or conditions that are not covered by the general insurance contract
Credit limit / line
Amount of credit that a financial institution extends; maximum amount a credit card company will allow someone to borrow on a single card
Credit rating
Score used by potential creditors to quantify how likely a person will repay a loan; based on financial resources and credit history; total debt level compared to income level, timeliness in paying bills, number of credit cards and many other factors are taken into consideration
Credit report
Report of an individual or company's history of repaying past loans and other liabilities; provided to a bank/company when it is considering granting credit to customers
Credit score
Number that indicates individual's creditworthiness; determined by credit bureaus with a statistical program that gives points for such things as credit card debt, number of cards, total debt level and whether one rents or owns his/her home; creditors use the score to decide whether to approve a mortgage loan, issue a credit card or offer a small business loan; a good score can result in a lower interest rate; a poor score can result in a higher interest rate or loan denial
Current balance
Amount of funds in the account including pending activity; does not include any funds available from other accounts; holds are not included in this balance
Curriculum vitae
Written description of work experience, educational background and skills; also called a CV, or vitae, it is more detailed than a rèsumè and is commonly used by those looking for work outside the U.S. or an academic job (i.e. college or university)