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Call center

Telephone service facility set up to handle a large number of (usually) both inbound and outbound calls. Some firms, however, specialize only in calls that are inbound (for assistance, help, or ordering) or outbound (for sales promotion or other messages). 

Call deposit

An investment account offered through banks which allow investors instant access to their accounts. Withdrawals and deposits can be made at any time. Rules and benefits differ depending upon the bank offering the deposit account.

Call money market

Market in which brokers and dealers borrow money to satisfy their credit needs, either to finance their own inventory of securities or to cover their customers’ margin accounts.

Called up

Value of the issued shares which have remained fully or partially unpaid, and whose holders have now been called upon to pay the balance.

Cancellation of cheque

A cheque that is passed by a bank officer as paid charged to the customer,s account. Once canceled, a cheque is no longer negotiable.

Capital

Owners own investment in the company. The net worth of a business; it  is, the amount by which company’s  assets exceed its liabilities. The money, property, and other valuables which collectively represent the wealth of an individual or business. Wealth in the form of money or property owned by a person or business and human resources of economic value

Capital Account       

In financial accounting, the capital account is one of the accounts in shareholders’ equity. Sole proprietorships have a single capital account in the owner’s equity. Partnerships maintain a capital account for each of the partners. In economics, the capital account is one of two primary components of the balance of payments, the other being the current account.

Capital assets

It refers to any asset used to make money, as opposed to assets used for personal enjoyment or consumption. All tangible properties which cannot easily be converted into cash  and which is usually held for a long period, including real estate, equipment machinery, etc.

Capital base

The capital acquired during an IPO (initial public offering), or the additional offerings of a company, plus any reserve and retained earnings.

Capital clause

The capital clause is a clause in Memorandum of Association (MA) which must state the amount of capital with which company is registered giving details of number of shares and the type of shares of the company. A company cannot issue share capital in excess of the limit specified in the Capital clause without altering the capital clause of the MA.

Capital expenditure

Funds spent for the acquisition of a long-term asset or for the improvement of the life of any existing asset.

Capital gain 

Any increase in the value of a capital asset (investment or real estate) that gives it a higher worth than the purchase price. The gain is not realized until the asset is sold. A capital loss is incurred when there is a decrease in the capital asset value compared to an asset’s purchase price.

Capital gain tax

A capital gains tax (CGT) is a tax charged on capital gains, the profit realized on the sale of a non-inventory asset that was purchased at a lower price. The most common capital gains are realized from the sale of stocks, bonds, precious metals and property.

Capitalization

The sum of a corporation’s long-term debt, stock and retained earnings also called invested capital. The market price of an entire company, calculated by multiplying the number of shares outstanding by the price per share here also called market cap or market capitalization.

Capitalization of profit

Conversion of retained earnings into paid-up capital, by issuing bonus shares to current shareholders in proportion to their shareholdings.

Cargo

The goods, merchandise, or whatever is conveyed / loaded on the ship, other vessel or aircraft; 

Carriage

The act of transporting; conveyance, the expense of transportation.

Carriage forward

Carriage forward” means that the recipient shall pay for the delivery charges.

Carriage inward

Delivery expenses incurred through the purchase of goods.

Carry over

To transfer (an account) to the next column, page, or book relating to the same account.

Cartel

Group of companies who attempt to control price or supply of a commodity through mutual command on production. it is illegal among companies / banks

Cash

Money in the form of coins or banknotes issued by a government of ant country, money or an equivalent, such as a cheque, paid at the time of making a purchase. Ready money; especially, coin or specie; but also applied to bank notes, drafts, bonds, 

Cash account

An account in which all transactions are in ready money excluding credit transactions.

Cash against document (CAD)

Cash against documents is a type of transaction in which the title for purchased goods is released to the buyer after the total sale price is paid using cash.

Cash book

A cashbook is an accounting book that is composed of cash receipts plus disbursements. This balance is posted to the cash account in the ledger.

Cash card

A cash card (also known as a debit card, or ATM card) is a card issued by a bank, for the customers to obtain cash at any time 24 hours a day and seven days a week from a machine called ATM.

Cash discount

A reduction in the price of an item for sale allowed if payment is made immediately or within a stipulated period, a reduction in the invoice amount in consideration of quick payment.

Cash dispenser

An unattended machine (ATM) placed outside some banks branches that dispenses cash/money when a personal coded card is used.

Cash float

The amount of money, a banks teller use to keep for making payments of the cheques and giving change to the customers. Shop keepers also maintain cash float to meet requirement of their customers.

Cash flow

A revenue or expense flow that changes a cash account over a given period. Cash inflows usually arise from one of three activities – financing, operations or investing – although this also occurs as a result of donations or gifts in the case of personal finance. Cash outflows result from expenses or investments An accounting statement called the “statement of cash flows”, which shows the amount of cash generated and used by a company in a given period.

Cashiers cheque

This is a check drawn on the funds of the bank and as such its payment is guaranteed by the bank. These are issued after receipts of their value .They are usually treated as cash since most banks clear them instantly. A cashier cheque is a kind of a draft drawn by a branch on its Head Office or Main Office. This is an order instrument can be paid on present at counter, but generally issued as crossed cheque. This is very customer’s friendly instrument as this instrument serves the purpose of both demand draft and pay order. Pay order is issued and paid by the same branch, Draft is paid by the branch on which it is drawn, while cashier cheque, can be paid at any branch of the bank. Cashier’s Cheque, contains name of issuing branch and its code, instrument number, date, drawn on main office, amount in words & figures. It can be issued for any amount, and require signatures of two authorized officers.

Cash in hand

Cash in actual possession; also called cash-on-hand.

Cash insurance limit

This refers to the cash related insurance limits, such as cash on counter limit, cash in safe limit, cash in transact limit.

Cash limit

Amount of money that can be withdrawn as cash at a time / in a month by use of ATM card / credit card. It also refers to the cash spending limit of a business concern in a given period.

Cash management account

Cash Management Account is a banking service provide to the high profile business customers through which customers can speedily obtain funds from their collection accounts to their main account through computer module. The module collects & consolidates data of customer’s bank account in any location in the country. Through cash Management, customers can speedup their account receivable & utilize their funds to the optimum level.

Cash margin

Cash deposit taken as security from the customers at the time of issuing Guarantee or opening letter of credit.

Cash ratio

This is a formula for measuring liquidity of the company by calculating ratio between cash and all cash equivalent assets and all current liabilities:

Cash ratio = Cash equivalent + cash

Current liabilities

Banks keep cash as a percentage of the total of customer’s deposits e.g. 1 or 1,50% of the total customers deposits. Higher cash holding effects negatively on the profitability of the bank.

Cedel

Cedel was a clearing company of securities. It was founded in 1971 and was owned by of 92 banks. Since July 2002 it is a division of Deutsche Börse, and known as Clearstream. Specialized in clearance and settlement between the banks

Central bank

A central bank, reserve bank, or monetary authority is the entity responsible for the monetary policy of a country or of a group of member states. It is a bank that can lend money to other banks in times of need. Its primary responsibility is to maintain the stability of the national currency and money supply, but more active duties include controlling subsidized-loan interest rates and acting as a lender of last resort to the banking sector during times of financial crisis. (SBP being the central bank of Pakistan has rescued many commercial banks at the time of crises) It may also have supervisory powers, to ensure that banks and other financial institutions do not behave recklessly or fraudulently.

Central processing unit (CPU)

The computer CPU is responsible for handling all instructions and calculation it receives from other hardware components in the computer and software programs running on the computer. It is the brains of the computer. The CPU is where most calculations and take place. The fundamental operation of most CPUs is to execute a sequence of stored instructions called a program. The program is represented by a series of numbers that are kept in some kind of computer memory. There are four steps that nearly all CPUs use in their operation fetch, decode, execute, and write back. In banking considering operational requirement of Basel II CPU has become more important. Because through CPU, better control can be exercised, record can be maintained as per SOP (slandered operating procedure) new products can be easily lounged, and sale target can be more effectively monitored.  

Certificate

An official document wherein recording of particular fact, event, or level of achievement are given, a document issued at the request of customer wherein details of customers financial stability, or details of customers performance of a particular achievement is given. 

Certificate of commencement of business

A private limited company can commence business on receipt of certificate of incorporation. A public company has, however, to wait to commence business till a certificate of commencement of business is received from the registrar of the joint stock companies. The certificate of commencement of business is granted on fulfilling the following a few other requirements:-

1) Where prospectus has been issued inviting the public on subscribe for shares.

2) Shares payable in cash have been allotted to the amount of minimum subscription.

3) Every director of the company has paid the full amount of the shares payable in cash.

4) There is no money liable to be paid to applicants for shares which have been offered for subscription.

5) A statutory declaration by the chief executive or one of the directors and the security    that the aforesaid conditions have been compared with.

The registrar on being fully satisfied that:

1- The verified declaration has been filed.

2- All other requirements of the ordinance have been compiled with.

The registrar will issue a certificate called, “certificate of commencement of business”. On receipt of this certificate a company is entitled to commence business. A company which has not issued a prospectus shall have to file a statement in lieu of prospectus for getting the certificate of commencement of businessThis content can be found on the following page:http://www.investorwords.com/714/capitalization.html 

Certificate of Deposit

A written acknowledgment of a bank that it has received from the person named a specified sum of money as a deposit, often for a fixed term at projected rate of profit. These certificates are not negotiable instrument.

Certificate of incorporation

The certificate of incorporation is an official certificate issued by the registrar on successful incorporation of a limited company. The certificate states the company number, name and date of incorporation.

Certificate of insurance

This is a document issued by an insurance company, it certifies that an insurance policy has been bought and shows an abstract of the most important provisions of the insurance contract. But it is not a substitute for the actual policy, and is normally a non-negotiable document-it cannot be assigned to a third party, and is unacceptable under the terms of a letter of credit and in making a claim.

Certificate of origin

A Certificate of Origin (CO or COO) is a document used in international trade. It states that from which country the shipped goods originate. In a CO  it does not mean the country the goods are shipped from, but the country where their goods are actually made. This raises a definition problem in cases where less than 100% of the raw materials and processes and added value are not all from one country. In that case country from where more than 50% of the sales price of the goods originate is acceptable as the country of origin.

Certificate of registration

A certificate issued by competent authorities wherein recording of particular fact, event, or level of achievement are given, such as income tax registration, a document issued by registrar evidencing that the charge given by the company has been registered.

Certificate of release

A certificate signed by a banker/ lender indicating that a loan against the security has been fully paid and all debts satisfied.

Certified cheque

A cheque containing certification that the person who issued the cheque has sufficient funds in his / her account to cover payment of the cheque.

Charge-off

Write off as a bad debt, the over due balance on a credit  that  the banker / lender no longer expects to be repaid 

Chain of title

A chain of title is the sequence of historical transfers of title to a property. The “chain” runs from the present owner back to the original. This report provides clarification that title is clear of any claims.

Chamber of commerce

This is an association formed by businessmen to protect and promote their rights, interest in an area. The role of the Chamber of Commerce is to act on behalf of its members at local and national levels. Their role is to act as the voices of businesses, to give businesses access to information and help businesses improve security give suggestions for budgetary measures and import / export policies. 

Charge

When property moveable or immoveable, of any person by act of parties or by operation of law made security for payment of money to another without creation of mortgage, the person who lend money is said to have charge on the property. A charge can be fixed or floating. A fixed charge is created for a certain figure for certain property by agreement which can cover company’s fixed assets i.e. land building machinery. The customer cannot deal with the property under charge. In case of floating charge, customer can freely deals with its property according to his / her will. The lender (Bank) can enforce its right in case of default. No interest is transferred in immoveable property under a charge; the document creating charge against immoveable property can be registered under section 17 1-b of the registration Act. In case of financing to the limited company against securities except pledge, charge must be registered with the registrar of the company within 21 days of the execution of the charge documents and obtain certificate of registration of charge. Late registration will attract penalty. In case of non-registration bank will be deprived for their right against those who have registered charge.

Chargeable assets

An asset on which capital gain tax is taken when sold. Assets which are not chargeable include cars, and some types of investments.

Charge account

A credit arrangement in which a customer receives purchased goods or services before paying for them, a consumer credit line that can be used up to a certain limit or paid down at any time.

Charges

The amount of money that one  has to pay for something, especially for an financial accommodation or service rendered such as, sums of money paid by a customer for a bank’s services.

Charity organization

A charitable organization is a type of non-profit organization. The term can technically refer to a public charity. E.g. charitable, educational, religious, or other activities serving the public interest or common good.

Charter

A document issued by a sovereign, legislature, or other authority, creating a public or private corporation, such as , college, or bank, and defining its privileges and purposes, A document outlining the principles, functions, and organization of a body.

Chartered accountant

A person possesses premium accountancy qualifications & becomes member of the Institute of Accountants in Pakistan or Institute of Accountants in England and wale (C.A.)

Charter party

A contract by which part or all of a ship is leased for a voyage or a stated time.

Charter party bill of lading

B/L issued by the hirer (charterer), and not by the owner, of the ship (vessel) transporting the shipment. Since the owners of the vessel often have the right to lay claim to the cargo aboard the ship (in case of a dispute with the charterer) banks generally refuse to accept such B/Ls as collateral for loans, or for payment under a letter of credit.

Checking account behavior

Account behavior is checked by matching numbers and size of transactions with declared sources of income at the time of opening the account.

Cheque

A printed form, used for withdrawal of money, to make payments from bank account. It is the standard document drawn on a particular bank, through which cash is withdrawn; payments are made to settle financial transactions. It is a negotiable instrument, which can be issued payable to the bearer or order on demand. According to the Negotiable instrument Act 1881 Section 6 A “cheque” is a bill of Exchange drawn on a specified banker & not express to be payable otherwise than on demand.

Cheque book

A book containing blank cheques issued by a bank.

Cheque truncation

The conversion of data on a cheque into an electronic image after a cheque enters the processing system. Cheque truncation eliminates the need to return canceled cheques to customers.

Chequeing account

A demand deposit account subject to withdrawal of funds by cheque.

Circumstantial evidence

Proof of existence or non-existence of a disputed fact, based on reasoning and not on personal knowledge or observation. In some cases, circumstantial evidence is given higher weight, because direct evidence may be mistaken or may be under prejudice.

Claim

Some ones demand by virtue of a right to pay; or demand the recognition of a right, title, possession, etc.

Claused bill of lading

A bill of lading that shows a shortfall or damage in the delivered goods. Typically, if the shipped products deviate from the delivery specifications or expected quality, the receiver may declare a Claused bill of lading.

Also known as a “dirty bill of lading” or “foul bill of lading.”

Clean bill

A negotiable instrument which has no commercial document attached.

Clearing

Clearing means presenting a cheque, pay order, draft or other negotiable instruments through the banking procedure / channel for its ultimate payment through clearing house by the drawee bank. In every day business financial transactions are settled through cheques of different banks. These cheques are deposited by the customers of the banks in their accounts. As such every day, Thousands of cheques are transported from various banks and financial institutions to reach the branches where the concerned accounts are maintained (upon which the cheques are drawn). The massive number of cheque-based transactions makes sorting a formidable task. For instance, in Karachi alone over hundred thousands of cheques come for, within city and inter-city clearance on a daily basis. In order to handle this huge task, an independent body is required. SBP has allowed NIFT (National Institutional Facilitation Technologies) to handle clearing process in big cities.

Clearing house

Clearing house is a place where representative of each of the clearing bank, attend there on each business day to exchange cheques & other negotiable instruments drown upon each other and to settle claims between them. NIFT function on behalf of State Bank of Pakistan and supervising function of clearing house in major cities and coordinate with Clearing Member Banks & SBP in settlement of their claims. 

Clearing house inter bank payment system (CHIPS)

CHIPS is a system for paying & receiving funds through the use of electronic terminals situated at banks who are members or associates of CHIPS system in New York city  USA. The associates’ members who include many foreign banks must select a correspondent from one of the member bank through which daily CHIPS transactions are settled. At the end of each business day, the clearing house notifies the net credit or debit positions of each member. The net position of & associate member is adjusted by debiting / crediting their account with correspondent bank. The correspondent banks which are member of Federal Reserve Bank settle their own & their associate’s member’s net position through balance maintained with Federal Reserve Bank New York.

Closed-end credit

Generally, any credit sale agreement in which the amount advanced, plus any finance charges, is expected to be repaid in full by a specified date. 

Closing costs

The total expenses incurred by sellers and buyers in transferring title in a property. The closing cost may include the origination fee, lawyers fees,  title search,  survey charge, recordation fees, and the credit report charge etc.

Closing pri