CUSIP Number typically stands for Committee on Uniform Security Identification Procedures and the 9-character alphanumeric security identifiers that they distribute for all North American securities for the purposes of facilitating clearing and settlement of trades. It is an identification number assigned to all stocks and registered bonds. The Committee on Uniform … [Read more...]
Contingent Credit Default Swap (CCDS)
A variation on the credit default swap (CDS). In a simple CDS, payment under the swap is triggered by a credit event, such as non-payment of interest. Here the trigger requires both the typical default plus some contingent event; e.g., default on another credit. Default correlation between the two credits, of course, is the critical variable. To illustrate with an extreme, … [Read more...]
Consumer Price Index For All Urban Consumers (CPI-U)
Consumer Price Index For All Urban Consumers (CPI-U) is a measure that examines the changes in the price of a demand of goods and services purchased by urban consumers. The urban consumer population is deemed by many as a better representative measure of the general public because most of the country's population lives in highly populated areas, which represent close to 90% of … [Read more...]
Consumer Confidence Index – CCI Explained
Consumer confidence is the degree of optimism that consumers feel about the overall state of the economy and their personal financial situation. How confident people feel about stability of their incomes determines their spending activity and therefore serves as one of the key indicators for the overall shape of the economy.A survey by the Conference Board that measures how … [Read more...]
Constructive Sale Rule – Section 1259
A section of the Internal Revenue Code that clarifies the transactions that are subject to capital gains taxation. Basically, any transaction that essentially offsets a previously held position is subject to the tax, even if it is not a straight sale of a security. An example of a transaction that falls under the Constructive Sale Rule is a short sale against the box.. … [Read more...]