A type of right given to shareholders of an acquired company (or a company facing major restructuring) that ensures they receive additional benefit if a specified event occurs. A contingent value right is similar to an option because it often has an expiration date that relates to the time the contingent event must occur. |||For example, shareholders of an acquired company may receive a CVR that enables them to receive additional shares of the target company in the event that target company's share price falls below a certain level by a specified date. Another example of a CVR would be for a target company to set aside a large sum of money that would be transferred to the shareholders of the acquired company in the event that the price of the target company's shares do not meet a certain target or fall below a specified price.
A fee (sales charge or load) that mutual fund investors pay when selling Class-B fund shares within a specified number of years of the date on which they were originally purchased.Also known as a "back-end load" or "sales charge". |||For mutual funds with share classes that determine when investors pay the fund's load or sales charge, Class-B shares carry a contingent deferred sales charge during a five- to 10-year holding period calculated from the time of the initial investment. The fee amounts to a percentage of the value of the shares being sold. It is highest in the first year of the specified period and decreases annually until the period ends, at which time it drops to zero. As a mutual fund investor, if you were to buy and hold Class-B fund shares until the end of the specified period, you could avoid paying this type of fund's sales charge, thereby enhancing your investment return. Unfortunately, fund research indicates that mutual fund investors are holding their funds, on average, for less than five years, which often triggers the application of a back-end sales charge in a Class-B share fund investment.
A financial model that extends the concepts of the capital asset pricing model (CAPM) to include the amount that an individual or firm wishes to consume in the future. The CCAPM uses consumption measures, in terms of a consumption beta, in its calculation of a given investment's expected return. To illustrate: |||In its simplest form, the CCAPM differs from the CAPM by only the beta coefficient used in the calculation. The beta for consumption attempts to measure the covariance between an investor's ability to consume goods and services from investments, and the return from a market index. In practice, the CCAPM is used less frequently than the CAPM, and should probably only be used on a theoretical basis.
A U.S. government agency that protects the American public from products that may create a potential hazard to safety. The Consumer Product Safety Commission focuses on consumer products that pose an unreasonable risk of fire, chemical exposure, electrical malfunction, or mechanical failure. Products that expose children to danger and injury are also a high priority. The Consumer Product Safety Commission investigates complaints from consumers concerning unsafe products, and also issues recalls of products that may be defective or violate mandatory standards. |||This agency keeps a watchful eye over products such as power tools, cribs, toys, household chemicals and cigarette lighters. It is an independent federal regulatory agency whose charter includes the following tasks: - To work with industry to develop voluntary product standards- To issue mandatory standards when required, or ban specific products where no standard would provide adequate public protection- To enforce standards and issue recalls or repair orders whenever necessary- To conduct independent research on potential hazards- To respond to consumer inquiries and complaints regarding specific products- To inform and educate consumers through the media and government channels
A variation of the consumer price index, as complied by the Bureau of Labor Statistics in the United States, that measures the consumer prices certain workers are exposed to. The index is primarily used on an annual basis, to reflect changes in the costs of benefits paid to Social Security beneficiaries.The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) is updated monthly - usually with a one-month lag. |||The CPI-W is calculated using the same data collected by the Bureau of Labor Statistics, but includes information from only certain demographics: those households with at least 50% of the household income coming from clerical or wage paying jobs, and at least one of the household's earners must have been employed for at least 70% of the year.The CPI-W is used as a benchmark for many benefit plans in order to reflect changes in the cost of benefits, but it can also be used in calculating future contract obligations.
A measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food and medical care. The CPI is calculated by taking price changes for each item in the predetermined basket of goods and averaging them; the goods are weighted according to their importance. Changes in CPI are used to assess price changes associated with the cost of living.Sometimes referred to as "headline inflation". |||The U.S. Bureau of Labor Statistics measures two kinds of CPI statistics: CPI for urban wage earners and clerical workers (CPI-W), and the chained CPI for all urban consumers (C-CPI-U). Of the two types of CPI, the C-CPI-U is a better representation of the general public, because it accounts for about 87% of the population. CPI is one of the most frequently used statistics for identifying periods of inflation or deflation. This is because large rises in CPI during a short period of time typically denote periods of inflation and large drops in CPI during a short period of time usually mark periods of deflation.
An identification number assigned to all stocks and registered bonds. The Committee on Uniform Securities Identification Procedures (CUSIP) oversees the entire CUSIP system. |||This system is used in the U.S. and Canada. Foreign securities have a similar number called the "CINS number".
This refers to the net income of a company after taking into account the increase (or decrease) in expenses over the reporting period. It is typically used by commodity reliant businesses. |||You will quite often find this term used in the energy industry because the price of oil can change so much from one year to the next.