What Was Corporate Trade Payment (CTP)? The corporate trade payment (CTP) was a form of transferring funds electronically that is no longer in use today. The CTP system was utilized by corporate and governmental entities to pay creditors using the automated clearing house (ACH) system. The CTP payment network became obsolete due to its lack of
What Is a Corporate Umbrella? A corporate umbrella is a large, generally successful brand name that oversees smaller companies belonging to the same corporation. It adds structure and credibility to the smaller brands without needing to make key organizational decisions regarding products and services. This allows the subsidiary to distinguish itself from the corporation, but with
What Is a Corporate Pension Plan? A corporate pension plan is a benefit that provides income in retirement based on the employee’s length of service to the company and salary history. Pension plans for American workers have become rare outside of government employment. According to the Bureau of Labor Statistics, in 2019, the percentage of
What Is Corporate Social Responsibility (CSR)? Corporate social responsibility (CSR) is a self-regulating business model that helps a company be socially accountable to itself, its stakeholders, and the public. By practicing corporate social responsibility, also called corporate citizenship, companies can be conscious of the kind of impact they are having on all aspects of society, including
What Is a Correction? In investing, a correction is usually defined as a decline of 10% or more in the price of a security from its most recent peak. Corrections can happen to individual assets, like an individual stock or bond, or to an index measuring a group of assets. An asset, index, or market
What Is Correlation? Correlation, in the finance and investment industries, is a statistic that measures the degree to which two securities move in relation to each other. Correlations are used in advanced portfolio management, computed as the correlation coefficient, which has a value that must fall between -1.0 and +1.0. Key Takeaways Correlation is a statistic
What Is a Correspondence Audit? The term correspondence audit refers to a tax audit conducted by mail or phone by the Internal Revenue Service (IRS). Correspondence audits are normally conducted on organizations, such as charities and nonprofits. The IRS sends the organization a written request for additional information about a specific item or issue on
What Is a Correspondent Bank? The term correspondent bank refers to a financial institution that provides services to another one—usually in another country. It acts as an intermediary or agent, facilitating wire transfers, conducting business transactions, accepting deposits, and gathering documents on behalf of another bank. Correspondent banks are most likely to be used by
What Is a Corridor Deductible? A corridor deductible is expenses paid by the insured in excess of an insurance policy’s coverage limit, but below the threshold at which additional coverage options are available. Corridor deductibles bridge the gap between policies that reach the aggregate limit of coverage and any additional coverage that may be in effect.
What Is Corruption? Corruption is dishonest behavior by those in positions of power. Those who abuse their power may be individuals or they may belong to organizations, such as businesses or governments. Corruption can entail a variety of actions, including giving or accepting bribes or inappropriate gifts, double-dealing, and defrauding investors. Corrupt behavior is often
