co-financing?An arrangement where more than one lending
organisation contributes to a joint loan, which might be done for one of several reasons. For
example 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 be
considered rather risky and the various lenders wish to reduce their exposure;
or perhaps the loan is for a government project, and competition or tendering
laws prohibit the government from using a certain private organisation.
collateral?In a loan agreement, the collateral is the property
which the borrower puts up as a security against failure to meet his or her
payment obligations. In most secured loans used by domestic borrowers, this is their own home. Should the
borrower fail to keep up with payments to the lender, the lender will be able
to seize the collateral in order to sell it and recoup the money lent.
commercial paper rate?Short-term discount bonds issued by
trusted corporate borrowers, usually with maturity of twelve months or less.
commercial risk?Risk encountered by all businesses, usually
associated 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 a
way that does not inhibit the running and growth of the business.
commodity?A commodity is a specific kind of good which is wholly
or partially fungible, meaning that a given amount of material from one
place 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 commodities
can therefore rise and fall on a global or a local scale, depending on where
the supply and demand for them are. Cars, for example, are not commodities
because 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 market
for a short period of time (based on a murabahah contract).
commodity price index?An averaged index of a selection of commodity prices. It
can 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 often
referred to as the commodity exchange).
Common Era?The dating
system used throughout the world, often abbreviated to ce but synonymous with ad, which is still widely used. ce is gaining popularity because it has
no defined religious connotations, whereas ad,
meaning Anno Domini (in
the year of our Lord, that is, Jesus
Christ) is meaningless or potentially offensive to non-Christians (and, indeed, some historians point
out that the exact date of the birth of Christ is not precisely known). bce
refers to the time before year 1 (there was no year 0) and stands for Before
Common Era, and is replacing bc (Before Christ) (see
also ce, Gregorian
collective name for a business
organisation’s assets and personnel, with legal status as a ‘legal person’. A
company’s primary purpose is to make a profit.