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GLOSSARY
Capitalization rate
Capitalization rate is a measurement of annual yield used for property and other capital assets. The capitalization rate is equal to income after taxes, divided by estimated value.
Capitalized (cap) cost
Capitalized (cap) cost is a figure representing the base value of a leased asset. Capitalized (cap) cost is used to calculate lease payments on auto and equipment leases.
Captive finance company
A captive finance company is a commercial entity that's wholly owned by another company, and whose business purpose is solely to finance customer purchases of the parent company's product. A retail chain selling consumer electronics, for example, might own a finance company that solely provides credit accounts to the retail customers who are buying electronics.
Caravan
A caravan is a convoy of real estate agents previewing recently listed properties.
Cardholder agreement
A cardholder agreement is the written statement of terms that governs a credit card account. The Federal Reserve requires credit card companies to provide cardholders with a cardholder agreement that defines the annual percentage rate, how minimum payments are calculated, annual account fees, and rights of the card holder when billing disagreements arise.
Carport
A carport is an unenclosed, roofed area designed for parking vehicles.
Carry back
A carry back, or carryback, is the application of a current year's tax credit to a prior year's tax liability.
Carry forward
A carry forward, or carryforward, is the application of a current year's excess tax credits to a future year's tax liability.
Carrying charge
Carrying charge is the cost of owning or storing an asset. If the asset is a physical commodity, the carrying charge might include storage costs and insurance. If the asset is a security, the carrying charge might be the ongoing costs of financing the security purchase.
Cash advance
A cash advance is a draw taken against a credit account in cash. Most credit card accounts allow for cash advances in addition to purchases, but the rates for cash advances are higher and the terms are more restrictive than those governing purchase transactions.
Cash advance fee
A cash advance fee is a charge levied by a credit card issuer when the cardholder draws down cash against a credit account. The fee might be structured as a per-transaction amount, or as a percentage of the amount of cash advanced.
Cash advance rate
Cash advance rate is a specific interest rate charged for cash borrowings against a credit line or credit card account. In the case of credit card accounts, cash advances generally accrue interest charges at a higher rate than purchases. Specific rates applied to purchases and cash advances should be spelled out in the cardholder agreement.
Cash back mortgage refinance loan
a type of loan that is larger than the remaining balance on your current mortgage. If you refinance with a cash back mortgage, you literally get cash back from the equity that has accumulated in your home. These types of loans are often used for home improvements or tuition.
Cash budget
A cash budget is an estimate of future cash inflows (such as customer payments), and cash outflows (such as payments to vendors for inventory and supplies).
Cash cards
Cash cards are similar to gift certificates in that they're purchased for a set dollar amount, and then can be used like cash at certain retailers, restaurants, or service businesses.