Glossary
- Contract size
- For futures contracts, the quantity to be delivered.
- Conversion premium
- The amount by which the price of a convertible bond exceeds the market price of the underlying stock.
- Conversion price
- The par value of a convertible security divided by the number of shares into which it may be exchanged.
- Conversion ratio
- The number of shares for which a convertible security may be exchanged.
- Convertible bond
- A bond which confers on the holder the right to exchange the bonds for other securities of the issuing company at a predetermined price and at, or during, determinable dates.
- Convertible security
- Bond or preferred stock that may be converted into another security at the holder's option.
- Corporate bond
- A long-term interest-bearing debt instrument that requires the issuer to pay the purchaser a specified sum of money, usually at specific intervals, and to repay the principal amount of the loan at maturity.
- Correlation coefficient
- A measure of the closeness of the relationship between 2 variables.
- Coupon
- (i) On bearer stocks, the detachable part of the certificate exchangeable for dividends.
(ii) Denotes the rate of interest on a fixed-interest security. - Coupon value
- The annual rate of interest of a bond.
