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This glossary is a FREE SERVICE to assist the student and enthusiast alike to get a better understanding of financial terms, analyst industry jargon and monetary concepts. It is a free service to all internet users.
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
  
Exact search         lion Contains the word      millions
Starts with word     lioness Ends with word          million
 
capacity the maximum amount that can be retained on a risk; the legal status of persons to enter into a contract

cash flow (Fund flow, net cash flow) Cash flow is the change in net cash and loans between the opening day of a period and the closing day. The period is normally one month or one year. [Net cash flow = Opening net assets – Closing net assets + Retained profit + Proceeds from sale of new equity = Opening loans – Closing loans where loans are total loans less total cash]

catastrophe n event causing losses of insured property above a specific monetary limit and affecting a substantial number of policyholders and insurers

client Client means a specific person or group of persons, excluding the general public, who is or may become the subject to whom a financial service is extended.

common law the body of law developed as a result of custom and judicial decisions, as distinct from the law laid down by legislative assemblies

compensate to pay for something lost or damaged

complaint Complaint means a complaint relating to a financial service rendered by a FSP to the complainant after the date of commencement of the Act in which it is alleged that the FSP has contravened or failed to comply with a provision of the FAIS Act, and as a result thereof, the complainant has suffered or is likely to suffer financial damage. The complaint could also be that the FSP has willfully or negligently rendered a financial service to the complainant which has caused damage to the complainant

compliance readiness to conform or agree to do something

compliance officer The officer appointed by an FSP to ensure compliance with the Act.

comprehensive policy a policy covering a wide variety of perils

consent to agree

consequence something that logically or naturally follows from an action or condition; the relation of a result to its cause

consequential loss a loss directly arising from another loss. The term is used to describe the class of business also known as loss of profits or business interruption insurance.

contribution Contribution is the (first level of) profit remaining after direct and indirect variable costs of goods sold have been deducted from sales revenue. [Contribution = Sales – Variable costs of sales]

cost of debt rate, kd% (Cd%, Rb%) The cost of debt rate is the after tax rate of interest the business has to pay for its borrowed money. [Kd% = Interest rate (1 – Tax rate)]

cost of debt, kd (Cd) The cost of debt is the after tax interest the business has to pay to borrow money. [Kd = Interest rate (1 – Tax rate) Loans]

cost of equity rate, ke% (Ce% ; Ke) Cost of equity is the rate shareholders could get in share price appreciation plus dividends, in other companies of equal risk. [Ke% = RfR + Ri (RP)] RfR is the risk-free rate of return. Ri is beta, the risk index. RP is a risk premium, the difference between the RfR and the average rate of return on the stock exchange.

cost of equity, ke (Ce. , Opening equity) Cost of equity is the amount shareholders could get in share price appreciation plus dividends in other companies of equal risk. [Ke = Ke%]

credit system Each financial adviser needs to obtain a certain number of credits depending on the type of advice he provides. Credits refer to credits on the National Qualifications Framework (NQF) and are prescribed on a particular level.