Business / Finance Glossary

Common Stock Ratios: The market for trading equities, not including preferred stock.

Common Stock-Other Equity: Ratios that are designed to measure the relative claims of stockholders to earnings (cash flow per share), and equity (book value per share) of a firm.

Common-Base-Year Analysis: Value of outstanding common shares at par, plus accumulated retained earnings. Also called shareholders' equity.

Common-Size Analysis: The representing of accounting information over multiple years as percentages of amounts in an initial year.

Common-Size Statement: The representing of balance sheet items as percentages of assets and of income statement items as percentages of sales.

Common-Sized: A statement in which all items are expressed as a percentage of a base figure, useful for purposes of analyzing trends and changing relationship among financial statement items. For example, . . . View Full Definition

Companion Bonds: A term used to refer to a financial statement in which all items are expressed as percentages of another item in the statement. For example, a common-sized balance sheet might show all value . . . View Full Definition

Company: A class of a Collateralized Mortgage Obligation (CMO) whose principal is paid off first when the underlying mortgages are prepaid due to falling interest rates. When interest rates rise, the . . . View Full Definition

Company Doctor: A proprietorship, partnership, corporation, or other form of enterprise that engages in business.

Company-Specific Risk: An executive, usually appointed from outside, brought in to turn a company around and make it profitable.

Comparative Credit Analysis: Related: Unsystematic risk

Comparative Statements: Comparing a firm to others that have a desired target debt rating in order to deduce an appropriate financial ratio target.

Comparison: Financial statements for different periods, that allo the comparson of figures to illustrate trends in a company's performance.

Comparison Universe: Short for 'comparison ticket,' a memorandum between two brokers that confirms the details of a transaction to be carried out.

Compensating Balance: A group of money managers of similar investment style used to assess relative performance of a portfolio manager.

Competence: An excess balance that is left in a bank to provide indirect compensation for loans extended or services provided.

Competition: Sufficient ability or fitness for one's needs. The necessary abilities to be qualified to achieve a certain goal or complete a project.

Competition Ahead: Intra- or intermarket rivalry between or among businesses trying to obtain a larger piece of the same market share.

Competitive Bidding: Often used in risk arbitrage. Situation whereby another O.T.C. market maker has transacted with investment bank at the stated market level before the bid/offer has been made.

Competitive Offering: A securities offering process in which securities firms submit competing bids to the issuer for the securities the issuer wishes to sell.

Complete: An offering of securities through competitive bidding.

Complete Capital Market: In the context of general equities, to fill an order.

Complete Portfolio: A market in which there is a distinctive marketable security for each and every possible outcome.

Completion Bonding: The entire portfolio, including risky and risk-free assets.

Completion Risk: Insurance that a construction contract will be completed successfully.

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