Tag: cd

Certified Divorce Financial Analyst – CDFA definition explanation

What is Certified Divorce Financial Analyst – CDFA?
A member of the Institute for Divorce Financial Analysts who specializes in the financial issues surrounding divorce. The role of the CDFA includes acting as an advisor to one party’s divorce lawyer, or as a mediator for both parties. A CDFA uses his or her knowledge of tax law, asset distribution, and short- and long-term financial planning to achieve an equitable settlement. Read more for examples and further explanation including related video clips and also comments
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Statistically Significant definition explanation

What is Statistically Significant?
The likelihood that a result or relationship is caused by something other than mere random chance. Statistical hypothesis testing is traditionally employed to determine if a result is statistically significant or not. This provides a “”p-value”” representing the probability that random chance could explain the result. In general, a 5% or lower p-value is considered to be statistically significant. Read more for examples and further explanation including related video clips and also comments
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Minimum Deposit definition explanation

What is Minimum Deposit?
The smallest amount of money that an investor/trader must initially deposit into a new brokerage account. Minimum deposits are required to cover the baseline costs associated with setting up a new account and maintaining it thereafter.

Also referred to as “”Minimum to Open an Account.”” Read more for examples and further explanation including related video clips and also comments
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Compulsory Convertible Debenture – CCD definition explanation

What is Compulsory Convertible Debenture – CCD?
A type of debenture in which the whole value of the debenture must be converted into equity by a specified time. The compulsory convertible debenture’s ratio of conversion is decided by the issuer when the debenture is issued. Upon conversion, the investors become shareholders of the company. Read more for examples and further explanation including related video clips and also comments
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Notching definition explanation

What is Notching?
When rating agencies reduce their ratings on structured financial collateral based on ratings from another agency without rating the collateral themselves. Notching arises when collateral, such as mortgage backed securities (MBS), and other asset backed securities (ABS) are included within investment vehicles that are rated, such as collateralized debt obligations (CDOs). Read more for examples and further explanation including related video clips and also comments
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Long (or Long Position) definition explanation

What is Long (or Long Position)?
1. The buying of a security such as a stock, commodity or currency, with the expectation that the asset will rise in value.

2. In the context of options, the buying of an options contract.

Opposite of “”short”” (or short position). Read more for examples and further explanation including related video clips and also comments
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Collateralized Debt Obligation Squared – CDO-Squared definition explanation

What is Collateralized Debt Obligation Squared – CDO-Squared?
A special purpose vehicle (SPV) with securitization payments in the form of tranches. A collateralized debt obligation squared (CDO-squared) is backed by a pool of collateralized debt obligation (CDO) tranches. Read more for examples and further explanation including related video clips and also comments
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Cooke Ratio definition explanation

What is Cooke Ratio?
A ratio that calculates the amount of capital a bank should have as a percentage of its total risk-adjusted assets. The calculation is used to determine a minimum capital adequacy standard that must be maintained by banks in case of unexpected losses.

From the First Basel Accord of 1988, the minimum requirement was determined to be a Cooke ratio of greater than or equal to 8%. Read more for examples and further explanation including related video clips and also comments
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