| Letter: C |
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| Capital gain
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The capital gain obtained when a security is sold at a higher price than the purchase price. It does not include the amount of any matured dividents (see Dividends)
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| Capital stock
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Its amount is established in the company statute. For jointstock companies, the capital stock is expressed as a given number of shares, each of them having a nominal value
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| Capitalisation
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Market value of a listed company, equal to the product of the number of its shares and their price
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| Cash flow
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The company total profits minus taxes and dividends paid, plus reserves for amortisation of fixed capital. It indicates the total amount of liquid resources available for the company management of investments, acquisitions, dividends etc.
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| CdA
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(Consiglio di Amministrazione - Board of Directors) It consists of members chosen by shareholders and known as Directors. They are responsible for managing the company
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| CAGR - Compound Annual Growth Rate
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The year-over-year growth rate of an investment over a specified period of time.
The compound annual growth rate is calculated by taking the root of the total percentage growth rate, where n is the number of years in the period being considered:
CAGR= [(Ending value/Beginning Value)^(1/n-1)]-1
CAGR isn't the actual return in reality. It's an imaginary number that describes the rate at which an investment would have grown if it grew at a steady rate. You can think of CAGR as a way to smooth out the returns.
CAGR is one of those terms best defined by example. Suppose you invested 10,000 Euro in a portfolio on Jan 1, 2005. Let's say by Jan 1, 2006, your portfolio had grown to 13,000 Euro, then 14,000 Euro by 2007, and finally ended up at 19,500 Euro by 2008.
Your CAGR would be the ratio of your ending value to beginning value (19,500 / 10,000 = 1.95) raised to the power of 1/3 (since 1/number of years = 1/3), then subtracting 1 from the resulting number:
1.95 raised to 1/3 power = 1.2493
1.2493 - 1 = 0.2493
Another way of writing 0.2493 is 24.93%.
Thus, your CAGR for your three-year investment is equal to 24.93%, representing the smoothed annualized gain you earned over your investment time horizon
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| Consensus estimate
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It is the complex of the target price estimates and of the analysts' opinions about the future performance of a stock (usually communicated in different ways to the market from the media), that is supposed to express the market's expectations
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| Consob
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(National Securities and Exchange Commission) It is the highest inspection and control institution for Stock Exchange markets
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Corporate
governance
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A set of rules, systems and company management and control organisations
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