Clearing: A mutual deduction of two companies’ receivables in the deals for purchase of securities.
Current account balance: A balance of payments, which includes the trade balance, the net income from investments, the net services and the net unilateral transfers.
Currency board: A monetary system which provides the local currency rate to be pegged to the fixes rate of another selected foreign (reserved) currency or currencies. The local currency remains convertible.
Currency area: An economic region, in which one or more than one currencies are used and they are functioning as one purchasing and payment tool.
Convertibility: The ability a certain national currency to be freely converted to other currencies. The convertibility can be either full or partial.
Closed economy: An economy which has no connections with other countries’ economies, meaning that it has no external sector.
Capital outflows: Net term, indicating the total of the credits given to foreign borrowers and the funds used for the purchase of foreign real or financial assets.
Capital: A secondary production factor. Capital can be either physical or financial.
Capital gain/loss: The difference between the selling and the purchase price of an asset, divided by its purchase price.
Capital markets: Markets on which financial tools with term of over 1 year are traded.
Cartel: An agreement, oral or written, between two or more than two companies for division of the market.
Cash flow: Net cash flow which indicates the difference between the earnings and the expenses of the company, including the paid taxes.
Classical unemployment: It arises from the unbalanced labour market in which the prevailing work salary exceeds its market value.
Call option: A purchase option.
Conglomerate: Big corporations which produce or sell technologically related products.
Cooperative: Voluntary unions of physical persons for the purpose of a conducting a commercial activity with dynamic capital and equal rights regardless of their participation in the company’s assets.
Credibility: A degree to which the market participants believe that the policy makers will keep and follow the chosen policy direction, for example the faith in the central bank engagement that it will produce anti-inflation politics.
Credit: Use of money as a payment mean. The money funds owners grant loans against the obligation the money to be returned together with a charged interest.
Credit risk: The risk of the borrower’s insolvency.
Credit ceilings: Administrative tool of monetary politics, restricting the total value of the granted credits by the banks.
Crisis: Relatively long phase of the economic cycle. It is characterized by the decrease in the value of the GDP.
Customs union: A stage of the economic integration when the trading restrictions between the participating in the union countries are removed and there has been built a unified tariff for the import of goods from third countries.
Collateral: Every right granted by the borrower to the creditor, securing the return of the loan. The collateral should have value , to have the potential to be controlled by the bank and to have liquidity.
Currency in circulation: The bank-notes and the coins which are outside of the banks.
Current yield: The relation between the annual income and the current price of a certain product.
Chronic budget deficit: A presence of a systematic budget deficit for a long period of time.
Currency rate: The price of one country’s currency represented in the currency of another country.
Currency market: The total of the currency operations on a certain market or market zone done for a certain period of time.
Currency risk: The possible losses for the banks coming as a result from the fluctuations of the currencies’ rates on the international markets.
Currency reserves: Available resources in foreign currencies, kept into foreign or local bank accounts, as well as into the central golden reserves of a certain country.
Conditional asset: A possible asset which is derived from past events and which existence will be confirmed only if one or more than one uncertain future events occur or do not occur and which cannot be fully controlled by the company.
Change in the accounting approximate evaluation: Correction of the balance value of certain asset(s) or liability(s) coming as a result of the current situation estimation and the expected future profits and obligations, related to the assets and the liabilities. Changes in the accounting approximate evaluations occur when there has been new information or new situation development and therefore they are not treated as corrections of mistakes.
Current tax: The amount of the owed/redeemable taxes on the income in relation with the taxable profit/tax loss for that period.
Coefficient of high liquidity assets: An indicator which measures this part of the liabilities which are with a payment period of not more than one year and which are covered by ready cash from other high liquidity assets.
Coefficient of solvency: An indicator which represents the relation between the own capital and the total amount of the liabilities.
Commission: A certain remuneration or payment to a trader or mediator when concluding deals, usually defined as a percent of the amount or the value of the deal.
Contractor: A side on a contract that agrees to perform services at a specified price to the other side, usually called the assignor (see assignor).
Controlling stake: A shares quantity which secures to its owner a decisive influence over the joint stock company’s activity.
Capital markets: Markets on which short-term and long-term financial tools are traded.
Cession: A contract with which the creditor transfers his receivables and the right on them to a third party.
Country risk: The risk that a certain country will not be able to meet its financial obligations.
Constituent act: A document prepared when establishing a company which defines the scope of activity, the management body, the initial capital, the address of management and other important facts and information about the starting business.
Chief Executive Officer (CEO): A person appointed by the Board of directors of a certain company, corporation or other organization with the purpose of ensuring implementation of the management decisions in a way that the company is following the approved by the Board principles. The CEO is sometimes also the director or the president of the company. He is also the person who coordinates the different functions of the organization.
Circular flow: Circulation of expenses and earnings in the entire economy which describes the interrelations between the households, the companies, the government, the capital market and the rest of the world.
Commercial bank: A bank which offers various bank products and services, such as deposits, credits, etc. Due to the constantly increasing competition in the financial sector these banks stretch their services portfolio, including insurance, financing of mortgages and wide range of business financing, which services used to be priorities to investment banks only
Capital accumulation: An increase in the basic capital through more intensive investing in means for renovation. Periodically this accumulation is being considered as an increase in the production potential.
Corporate income tax: A tax that must be paid by a corporation based on the amount of profit generated. The amount of tax, and how it is calculated, varies depending upon the region where the company is located. In Bulgaria the corporate income tax rate is at the flat amount of 10% which is the lowest in the EU.