co-financing?An arrangement where more than one lendingorganisation contributes to a joint loan, which might be done for one of several reasons. Forexample the loan might be larger than a single lender is willing to put up(which would be the case in a major infrastructural project); the loan could beconsidered rather risky and the various lenders wish to reduce their exposure;or perhaps the loan is for a government project, and competition or tenderinglaws prohibit the government from using a certain private organisation.collateral?In a loan agreement, the collateral is the propertywhich the borrower puts up as a security against failure to meet his or herpayment obligations.
In most secured loans used by domestic borrowers, this is their own home. Should theborrower fail to keep up with payments to the lender, the lender will be ableto seize the collateral in order to sell it and recoup the money lent.commercial paper rate?Short-term discount bonds issued bytrusted corporate borrowers, usually with maturity of twelve months or less.commercial risk?Risk encountered by all businesses, usuallyassociated with things out of their control such as clients defaulting on payments.Like all risk, commercial risk must be taken as unavoidable but managed in away that does not inhibit the running and growth of the business.commodity?A commodity is a specific kind of good which is whollyor partially fungible, meaning that a given amount of material from oneplace is no different from the same amount from somewhere else, for example,oil, gold or currencies, and some crops such as wheat.
The price of commoditiescan therefore rise and fall on a global or a local scale, depending on wherethe supply and demand for them are. Cars, for example, are not commoditiesbecause they vary in quality.commodity fund?A fund that holds only commodities, often,but not necessarily, a single commodity such as gold.commodity placement?Placing funds in an inter-bank marketfor a short period of time (based on a murabahah contract).commodity price index?An averaged index of a selection of commodity prices.
Itcan be a general index with a broad spectrum of commodities or a specific one,for example metals. It is used to gauge the direction and well being of the commodity market.commodity market?A building, organisation or virtual entity where commodities are bought and sold (although the building itself is more oftenreferred to as the commodity exchange).Common Era?The datingsystem used throughout the world, often abbreviated to ce but synonymous with ad, which is still widely used. ce is gaining popularity because it hasno defined religious connotations, whereas ad,meaning Anno Domini (inthe year of our Lord, that is, JesusChrist) is meaningless or potentially offensive to non-Christians (and, indeed, some historians pointout that the exact date of the birth of Christ is not precisely known). bcerefers to the time before year 1 (there was no year 0) and stands for BeforeCommon Era, and is replacing bc (Before Christ) (seealso ce, Gregoriancalendar, Hijri).
company?Thecollective name for a businessorganisation’s assets and personnel, with legal status as a ‘legal person’. Acompany’s primary purpose is to make a profit.