Lapse
What is a 'Lapse' A lapse is the cessation of a privilege, right or policy due to time or inaction, so a lapse of a privilege due to inaction occurs when the party that is to receive the benefit does not fulfil the conditions or requirements set forth by a contract or agreement. Explaining 'Lapse' ...
Canadian Income Trust
What is 'Canadian Income Trust' A type of corporate structure as designated by the Canada Revenue Agency that operates as a profit-seeking corporation. This type of company pays out all earnings to unit holders before paying taxes, and is usually traded publicly on a securities exchange. In 2011 all Canadian income trusts lost their special corporate tax...
Contango
DefinitionContango is a situation where the futures price of a commodity is higher than the anticipated spot price at maturity of the futures contract. In a contango situation, arbitrageurs/speculators, are "willing to pay more for a commodity at some point in the future than the actual expected price of the commodity . This may be due to people's...
Call Date
DefinitionA callable bond is a type of bond that allows the issuer of the bond to retain the privilege of redeeming the bond at some point before the bond reaches its date of maturity. In other words, on the call date, the issuer has the right, but not the obligation, to buy back the bonds from the bond holders...
Cambrist
What is 'Cambrist' An individual who is deemed to have above-average knowledge of the foreign exchange market. A cambrist can relate to anyone who deals with currencies and foreign exchange on a regular basis and is adept at recognizing factors and situations that affect foreign exchange. Foreign exchange traders often come to mind when discussing cambrists. ...
Call Price
What is a 'Call Price' A call price is the price at which a bond or a preferred stock can be redeemed by the issuer. This price is set at the time the security is issued. Also referred to as "redemption price". Explaining 'Call Price' For example, let's say the TSJ Sports Conglomerate issues...
Cancellation Provision Clause
What is 'Cancellation Provision Clause' It is a provision in an insurance policy that permits an insurer or an insurance company to cancel a property and casualty or a health insurance policy at any time before its expiration date. Life insurance policies do not contain cancellation clauses, and while health insurance policies contain cancellation clauses, the clause...
Call Market
What is a 'Call Market' A call market is a type of market in which each transaction takes place at predetermined intervals and where all of the bid and ask orders are aggregated and transacted at once. The exchange determines the market clearing price based on the number of bid and ask orders. A call market is...
Canada Premium Bond (CPB)
What is 'Canada Premium Bond - CPB' A debt instrument issued by the Bank of Canada that offers a higher interest rate than a Canada Savings Bond (CSB) with the same issuance date. Explaining 'Canada Premium Bond - CPB' While a Canada Savings Bond is redeemable at any time, a Canada Premium Bond is...
Charitable Contributions Deduction
Charitable contributions deduction is a tax incentive offered to individuals that donate sums to a recognized charity. The tax deduction allows taxpayers to reduce tax amount, which is due to the tax authority. Contributions to the charity can be either made in the form of property or cash. In the US, the details of allowable deductions are listed on...