International Dictionary of Insurance and Finance

John Clark

• Publisher: Routledge
• Year: 2014
• Print ISBN: 9781579581619
• eBook ISBN: 9781135946890
• Topic: Business
• Subtopic: Business General
• Index: Business

International Dictionary of Insurance and Finance is an efficient and useful book for business professionals, consumers, business students, insurance professionals, and corporate risk managers. All aspects of international insurance, including life, health, property, casualty, marine, disability, business interruption, copyright and trademark protection, and a host of other insurance topics, are covered. Arranged in an easy-to-use alphabetical format, the Dictionary provides definition, explanation, and illustration of each term. The Dictionary is also multi-disciplinary, covering a number of related terms in finance and investments.

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C

CA Abbreviation of chartered accountant.

cabinet crowd Members of the New York Stock Exchange who deal in rarely traded bonds.

cable transfer An alternative term for telegraphic transfer.

CAC Abbreviation of Compagnie des Agents de Chance.

CAD Abbreviation for cash against document.

call Act of demanding payment for shares or stocks, or repayment of a debt. A lender may advance money on condition that it is repaid on call (without notice).

callable bond Bond that may be called for payment before its maturity date.

called-up capital Sum of money that has been paid to a company by its shareholders. See also partly-paid shares; uncalled capital.

call option Option to by shares, commodities or financial futures at an agreed price on or before an agreed future date.

callover Method of trading on a stock exchange whereby the securities listed are called out in order, and dealers make bids or offers for each secunty according to their instructions.

callover price Price for a security verbally agreed at callover.

call provision Condition attached to a bond by which the issuer is entitled to redeem the bond at a fixed price after a specified period of time.

call up Alternative for call, especially with respect to partly-paid shares.

Calvo clause Contract clause regarding foreign investment. It states that, in the event of a dispute, the parties agree to abide by the law of the foreign country.

cancellation Voiding of an agreement, either in due course (such as the discharge of a bill of exchange).

cancellation notice Statutory notice sent for most life policies, allowing the proposer to cancel the policy within 14 days of receipt of the notice if he or she decides not to continue with the policy. A full refund of premium is given.

cancellation price Lowest price a unit trust manager can accept for units on any one day.

C & F Abbreviation of cost and freight.

cap Interest rate option that enables the investor to hedge against the possibility of interest rates rising to the investor’s disadvantage. See hedging.

capacity Measurement of the ability of a company to produce goods or services. In insurance, it specifically means the amount of insurance business an insurer is able to write.

cap and collar mortgage Mortgage with fixed upper and lower limits of the variable interest rate.

capital Vague term that most often requires a qualification. Unqualified, it usually refers to the resources of an organization or person (e.g. equipment, skill, cash).

capital account Part of the balance of payments, which refers to international movements of capital, including intergovernmental loans.

capital adequacy Total capital that a financial institution must hold to cover potential risks.

capital allowances Amounts deducted from a company’s profits before tax is calculated, to take into account depreciation of capital assets (such as vehicles, plant and machinery, and industrial buildings).

capital assets Another term for fixed assets.

capital bond Full name National Savings Capital Bond, a 5-year UK bond dating from 1989, issued by the Department of National Savings. It is sold in units of £100 and has a fixed rate of interest, which is not taxed at source.

capital budget Forward planning of forward capital movement, involving larger sums of money and longer timescales than a cash budget.

capital clause In the memorandum of association of a company, that section setting out the details of the company’s capital.

capital duty Former tax paid by companies on profits gained from a new share issue. It ceased to be levied in 1988.

capital employed Capital that a company uses to finance its assets. It is taken to be the sum of shareholders’ funds, loans and deferred taxation.

capital expenditure Expenditure on capital goods e.g. fixed assets such as plant or on trade investments and current assets. Capital expenditure is classed as below-the-line for accounting purposes. See also trade investment.

capital gain Gain made from a capital transaction, e.g. the buying and selling of assets.

capital gains tax (CGT) Tax paid on capital gains.

capital goods Goods (such as machines) that are used for the production of other goods. Ships are also sometimes regarded as capital goods.

capital growth Increase in the value of an investment over a period of time.

capital guarantee investment Investment, such as those offered by National Savings, that cannot fall in value (because of a guarantee given by a bank, building society, government or other institution).

capital-intensive Describing a business in which capital is the most important and costly factor of production. Thus, an industry in which the major cost is the purchase and maintenance of machinery (fixed capital) is capital-intensive.

capitalism Economic and political system in which people are entitled to trade for profit on their own account. It is also known as free or private enterprise. See also communism.

capitalist economy Economy in which business is conducted f...

Table of contents

• Cover
• Title Page
• Copyright Page
• Preface
• A
• B
• C
• D
• E
• F
• G
• H
• I
• J
• K
• L
• M
• N
• O
• P
• Q
• R
• S
• T
• U
• V
• W
• X
• Y
• Z