Call
The amount due to be paid to a company by the purchase of new or partly paid shares.
Call Account
A deposit account with a financial institution without a fixed maturity date. The deposit can be ‘called’ (withdrawn) at any time. Call account deposits are usually one to seven day placements, however, two parties can agree on different maturities.
Call Option
The right to buy stock or shares at an agreed price at a future date.
Capital Controls
Government restrictions on the acquisition of foreign assets or foreign liabilities by domestic citizens, or the acquisition of domestic assets or domestic liabilities by foreigners.
Capitalisation Issue
The process whereby money from a company’s reserves is converted into issued capital and then distributed to shareholders as new shares, in proportion to their original holdings, also known as bonus or scrip issue.
Captive Insurance Company
A wholly owned or controlled subsidiary company established by a non-insurance parent for participation in the insurance risks of the parent and its other affiliates or associates.
Certificate of Incorporation
Proof of registration of a company with the Registry.
Company Limited by Guarantee
An incorporated entity without share capital.
Company Secretary
Officer of a company, statutory in most common law jurisdictions. The person or corporation responsible for acceptance of legal service and for complying with various statutory filing requirements.
Consideration
The money value of a transaction (number of shares multiplied by the price) before adding commission, stamp duty.
Copyright
The recognition by an appropriate governmental agency of the ownership of something, usually intellectual property. Designs, art, programs, literary works, music, logos, etc. can be all copyrighted. Anyone wishing to use the intellectual property in any way will have to pay a fee to the copyright owner.
Corporate Director
Corporate entity appointed as director of a company. This means that a company is the director of the other company in question.
Credit Risk
The risk that a counter-party to a transaction will fail to perform according to the terms and conditions of the contract, thus causing the holder of the claim to suffer a loss.
Debenture
A loan raised by a company paying a fixed rate of interest and secured on the assets of the company.
Director
Person who conducts the affairs of a company and who may in certain circumstances be liable towards creditors and shareholders in case of failure.
Discretionary Trust
The form of trust which is usually established offshore. The ‘discretions’ are vested in the trustee who can usually decide which of the beneficiaries is to benefit, when and to what extent. Discretions are exercised under advice of, or suggestions from, the settlor/protector.
Dividend
That part of a company’s post-tax profits distributed to shareholders, usually expressed in pence per share.
Domicile
Under English common law, domicile is the place of your permanent home and the means by which you are connected with a certain system of law for certain legal purposes such as marriage, divorce, succession of estate and taxation.
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