Cage
What is 'Cage' "Cage" is a slang term used to describe the department of a brokerage firm that receives and distributes physical securities. To ensure that security ownership standards are maintained, brokerages keep cages within their offices to ensure that physical issues are secured. Stock and bond certificates are viewed as a stored value of money; if...
Canadian Rollover Mortgage
Home Ownership by Country Canadian Rollover Mortgage What is 'Canadian Rollover Mortgage' A home mortgage with an adjustable rate feature. The Canadian Rollover mortgage differs from a 30-year fixed rate mortgage, in that the loan's interest rate is adjusted every five years, with no cap on the interest rate adjustment. The Canadian Rollover Mortgage is also known...
Callable Swap
What is 'Callable Swap' An exchange of cash flows in which one counterparty makes payments based on a fixed interest rate, the other counterparty makes payments based on a floating interest rate and the counterparty paying the fixed interest rate has the right to end the swap before it matures. An...
Canary Call
What is 'Canary Call' A step-up bond that cannot be called after completing its first-step period. The issuer of the bond reserves the option to call back the bond until the first step is reached. A canary call may only be exercised on predetermined dates. Explaining 'Canary Call' The canary call is similar to...
Canadian Deposit Insurance Corporation (CDIC)
What is 'Canadian Deposit Insurance Corporation - CDIC ' A crown corporation owned by the Canadian government that insures bank deposits up to C$100,000 per personal account held in member Canadian banks in they event that the financial institution fails. The corporation was formed under the Financial Administration Act and Canada Deposit Insurance Corporation Act in 1967....
Call Protection
What is a 'Call Protection' A call protection is a protective provision of a callable security prohibiting the issuer from calling back the security for a period early in its life. Explaining 'Call Protection' The call protection is advantageous to investors because it prevents the issuer from forcing redemption early on in the life of...
Charitable Remainder Trust
What is a Charitable Remainder Trust A Charitable Remainder Trust, or CRT, is a type of trust that allows the settlor (the person establishing the trust) to receive income from the trust for a set period of time. At the end of the set period, the remaining assets in the trust are distributed to a charitable organization. CRTs can be...
Calendar Effect
DefinitionA calendar effect is any market anomaly or economic effect which appears to be related to the calendar. Such effects include the apparently different behaviour of stock markets on different days of the week, different times of the month, and different times of year. The term sometimes includes multi-year effects, such as the 10-year cycle, or the 4-year U.S....
Canceled Check
What is a 'Canceled Check' A canceled check is a check that has cleared the depositor's account and has been marked "canceled" by the bank. A canceled check has been paid by the drawee bank and endorsed by the payee, the payee's bank and the Federal Reserve Bank. Canceled checks can also be used as proof of...
Cost basis
DefinitionBasis, as used in United States tax law, is the original cost of property, adjusted for factors such as depreciation. When property is sold, the taxpayer pays/ taxes on a capital gain/ that equals the amount realized on the sale minus the sold property's basis. Cost basis The cost basis is the price of an asset or security determined...