See: Options

CBT (Chicago Board Of Trade)
Exchange in which futures--such as corn, gold, silver and wheat--and futures options are traded.

See: Futures Contract; Futures Market

CD (Certificate Of Deposit)
A money market instrument issued by banks that has a set interest rate and maturity date. CDs may be issued for as low as $100. CDs that are in denominations of $100,000 or more are called "jumbo CDs." Maturities can range from a few weeks to several years.

See: Brokered CD; Jumbo Certificate Of Deposit; Maturity Date; Money Market

Certificate
The actual paper evidencing ownership of a security. The certificate states the issuer's name, amount of shares, shareholder's rights, the issue's par value (or declaration of no par value) and any responsibilities of the issuer. Certificates may be issued in registered or bearer form.

See: Issuer; Par Value; Registered Security; Shareholder

Certificateless Municipal
A municipal bond in which one certificate represents the entire issue. The bondholder does not receive a certificate of ownership. The benefit of certificateless municipals is that investors do not have to transfer certificates when they sell the bonds.

See: Book-Entry Securities; Certificate; Municipal Bond

Certificate Of Deposit (CD)
A money market instrument issued by banks that has a set interest rate and maturity date. CDs may be issued for as low as $100. CDs that are in denominations of $100,000 or more are called "jumbo CDs." Maturities can range from a few weeks to several years.

See: Brokered CD; Jumbo Certificate Of Deposit; Maturity Date; Money Market

Chartist
Technical analyst who believe recurrent trading patterns can assist them in forecasting future price movements. The analyst will plot the patterns of stocks, bonds and commodities to formulate buy and sell recommendations for clients.

See: Technical Analysis

Chicago Board Options Exchange (CBOE)
Exchange in which options are traded.

See: Options

Chicago Board Of Trade (CBT)
Exchange in which futures--such as corn, gold, silver and wheat--and futures options are traded.

See: Futures Contract; Futures Market

Chicago Mercantile Exchange
Exchange in which foreign currency futures and futures options are traded. Amongst others, some examples are the British pound, Canadian dollar, French franc, and the Japanese yen. In addition, futures and futures options are traded on such vehicles as indexes, live cattle, pork bellies and lumber.

See: Futures Contract; Index; Options

Cincinnati Stock Exchange (CSE)
The first completely automated stock exchange that transacts members' orders without having an actual trading floor. Orders are placed and executed via computers.

See: Floor; Over The Counter; Stock Exchange

Circuit Breakers
Procedures established to forestall the market from spiraling down. Circuit breakers will "kick-in" when the market has dropped by a specific amount within a certain period. At that time, the major stock and commodities exchanges will temporarily stop trading in stocks and stock index futures to give floor traders time to rebalance buy and sell orders. Circuit breakers were introduced in 1987 after Black Monday. The levels were revised when the market had another steep drop in October 1989.

See: Black Monday; Floor Trader; Program Trading; Stock Exchange

Classified Stock
Equity that is divided into more than one type of common stock, usually designated as Class A and Class B. The differences between the classes are designated in a corporation's charter and bylaws. Class A usually has an advantage in terms of voting power, although additional dividend and liquidation privileges may also be granted. Class B stock was formed primarily as a means of preserving control as Class B stock usually carries limited voting powers.

See: Common Stock; Liquidation; Voting Right

Class Of Option
Option contracts of the same type and underlying security. If the option class also has the same exercise price and expiration date, it is called an "option series."

See: Exercise Price; Expiration Date; Option Series; Options; Strike Price

Close A Position
The elimination of an investment from a portfolio. If the security is a long position, the investment is sold. If the security is a short position, the investment is bought.

See: Closing Transaction; Long Position; Portfolio; Short Position

Close, The
At the end of a trading session, the final trade in a security.

See: Closing Price; Opening, The

Closed End Fund
An investment company that issues a fixed number of shares and is usually listed on a stock exchange. An investor who wishes to buy shares must purchase them from investors who wishes to sell their shares. They do not deal with the investment company directly.

See: Closed End Management Company; Dual Purpose Investment Company; Investment Company; Open End Management Company

Closed End Management Company
Term used interchangeably with "closed-end fund." It is an investment company that issues a fixed number of shares and is listed on a major stock exchange. An investor who wishes to buy shares must purchase them from an investor who wishes to sell their shares. They do not deal with the investment company directly.

See: Closed End Fund; Investment Company; Open End Management Company

Closed Fund
An open-end mutual fund that has grown so large that it no longer will issue new shares. However, some funds will allow investors, who are already shareholders, to purchase additional shares.

See: Investment Company; Mutual Fund; Open End Management Company

Close-Out
The liquidation of a client's position because the client has not met a margin call that was generated because of a margin purchase or a short sale.

See: Close A Position; Frozen Account; Liquidation; Margin; Margin Call; Selling Short; Sell Out Procedures

Closing Price
At the end of a trading session, the price of the final trade in a security.

See: Close, The

Closing Purchase
An option writer's (seller) purchase of an option that has the same features (series) of the option previously sold to affect a liquidation of the writer's position. When an option writer sells an option, it is said that the trade is a "sell to open." When closing the position, the writer places an order to "buy to close."

See: Liquidation; Options; Option Series; Option Writer

Closing Quote
The last bid and offer prices recorded by a market maker or specialist at the trading day's close.

See: Closing Sale; Market Maker; Specialist

Closing Sale
A sale of an option that has the same features (series) as an option previously purchased to affect a liquidation of the option position. When an investor wishes to buy an option, the order is placed as a "buy to open." Conversely, when closing the position, the investor places an order to "sell to close."

See: Closing Transaction; Options; Option Series

Closing Transaction
An option that is purchased or sold to eliminate an existing long or short position.

See: Closing Purchase; Closing Sale; Long Position; Options; Short Position

CMV (Current Market Value)
The worth of all positions in a client's brokerage account. To determine the portfolio's current market value, stocks and listed bonds are valued at their closing prices. For over-the-counter securities, the bid is used.

See: Closing Price; Long Market Value; Over The Counter; Over The Counter Securities; Short Market Value