Canada Revenue Agency (CRA)
What is 'Canada Revenue Agency - CRA' A federal agency that collects taxes and administers tax laws for the Canadian government, as well as for many of Canada's provinces and territories. The Canada Revenue Agency, or Agence du revenu du Canada, also oversees a variety of social and economic benefit and incentive programs via the tax system,...
Canada Mortgage and Housing Corporation (CMHC)
Home Ownership by Country Canada Mortgage and Housing Corporation (CMHC) What is 'Canada Mortgage and Housing Corporation - CMHC' An organization sponsored by the Canadian government that provides mortgage loans to home buyers. Started as a crown corporation, the Canada Mortgage and Housing Corporation offered housing to soldiers returning from WWII. Over time the CMHC evolved to...
Cancellation
What is 'Cancellation' A cancellation is a notice made by a broker, to his client, informing him an erroneous trade was made and is being rectified. Despite the fact technology is an ever-present and ever-evolving part of daily life, trading mistakes are made, either by human or electronic error, and brokers must correct the mistake immediately, notifying the client of...
Canadian Depository For Securities Limited (CDS)
What is 'Canadian Depository For Securities Limited - CDS' Canada's national securities depository, clearing and settlement hub. The Canadian Depository for Securities Limited, widely known by its acronym CDS, provides reliable and cost-effective depository, clearing and settlement services to participants in Canada's equity, fixed income and money markets. It was incorporated in June 1970, in response to...
Cabinet Crowd
What is 'Cabinet Crowd' Members of the NYSE who typically trade in inactive bonds. The cabinet crowd is made up of a relatively small group of traders and investors who deal in inactive fixed-income securities. These bonds are inactive due to the fact that they are not actively traded and, thus, are deemed more illiquid, causing bid-ask...
Call Money
Definition Call money is minimum 5% short-term finance repayable on demand, with a maturity period of one to fourteen days or overnight to fortnight. It is used for inter-bank transactions. The money that is lent for one day in this market is known as "call money" and, if it exceeds one day, is referred to as "notice money." What is 'Call...
Call Warrant
What is a 'Call Warrant' A call warrant is a financial instrument that gives the holder the right to buy the underlying share at a specific price, on or before a specified date. Call warrants are often included in a new equity or debt offering from a company, in order to provide an added inducement to potential...
Call Risk
What is 'Call Risk' The risk, faced by a holder of a callable bond, that a bond issuer will take advantage of the callable bond feature and redeem the issue prior to maturity. This means the bondholder will receive payment on the value of the bond and, in most cases, will be reinvesting in a less favorable...
Calamity Call
What is 'Calamity Call' A call feature of a Collateralized Mortgage Obligation (CMO) designed primarily to reduce the issuer's reinvestment risk. If the cash flow generated by the underlying collateral is not enough to support the scheduled principal and interest payments, then the issuer is required to retire a portion of the CMO issue. Also...
Call Privilege
What is 'Call Privilege' The provision in a bond indenture that gives the bond issuer the option to redeem all or part of the bond issue, at pre-determined prices on certain specified dates. These dates are known as "call dates" and form the call schedule. The term "call privilege" derives its name from the fact that the...