Call: A demand for a further payment by a specified date. A call can be made on share issue or margin debt.
Capital: The money used by a company to buy the Assets it needs for operating its business. Capital can be obtained from either a company’s shareholders or from lenders.
Capital Gain / Loss: A profit (or loss) made by an individual (or corporation) on the disposal of an asset for more (or less) than he paid for it. Under Malaysian tax laws. personal capital gains are not taxable unlike the situation in the US or UK.
Capital Issues Committee (of Malaysia): The authority charged with overseeing all new issues of Equity Capital made by public listed companies. Cspinl Repayment: When a company has more cash than it will ever need, it may undertake to pay some of it back to the shareholders by reducing the Paid-up Capital of the company. This has the advantage of being tax-free compared with Dividend.
Capital Reserves: The Reserves (see under Reserves) which arise from a capital gain, revaluation or premium on share issue. They are not free for distribution to share. holders through the Profit and Loss Account. These reserves can be capitalised as bonus issues. E.g. Share Premium Reserve, Asset Revaluation Reserve, etc.
Cash Cow: A business operation which produces a lot of surplus cash.
Cash Flow: A term generally used to mean the nett inflow of cash from its business operations into a company in any one year. It can be computed simplistically by adding Depreciation to the Profit After Tax.
Cats and Dogs: A US term used to describe third and fourth grade shares, the opposite of Blue Chips.
Chartism: The older name for Technical Analysis.
Consolidation: A way of preparing the accounts of a holding company whereby all the assets and profit of its Subsidiary/ies and a pro rata portion of the profit of its Associate/s is included among the assets and profit of the holding company.
Contrarian Approach: An investment method based on the belief that the general investment public, as a whole, usually behaves erroneously. The correct investment approach to take under such a belief is to behave in a way opposite to the general behaviour of the investing public.
Convertible Securities: Securities (usually Fixed Interest Securities) which can be converted it”? another type of securities (usually Common Stock) at a pre-determined rate over a predetermined period e.g. Convertible Preferred Stocks.
Coupon Rate: The interest rate on a loan stock, calculated on the face value of the loan stock.
CRI: Short form for Cum Rights Issue. (See Cum.)
Current Cost Accounting: An accounting convention which states all assets at their estimated current market cost. This accounting method tends to understate the profitability of the company. This is not a commonly adopted convention except in countries with a very high rate of inflation.
Current Assets: Assets which are used in the course of carrying out the business operations of a company. Normally, current assets would either be used up or be liquidated within a year.
Current Liabilities: Obligations which arise in the course of carrying out the business operations of a company. Current Liabilities are normally paid back or settled within one year.