What Is Conduit Theory? Conduit theory is a theory stating that an investment company that passes all capital gains, interest, and dividends on to its shareholders shouldn’t be taxed at the corporate level like most regular companies. Most mutual funds qualify as a regulated investment company, which gives them conduit status and requires them to
What Is a Confession of Judgment? A confession of judgment is a written agreement, signed by the defendant, that accepts the liability and amount of damages that was agreed on. A confession of judgment is a way to circumvent normal court proceedings and avoid a lengthy legal process to resolve a dispute. Signing such a
What Is a Confidence Interval? A confidence interval, in statistics, refers to the probability that a population parameter will fall between a set of values for a certain proportion of times. Analysts often use confidence intervals than contain either 95% or 99% of expected observations. Thus, if a point estimate is generated from a statistical
What Is Confirmation Bias? Confirmation bias is a term from the field of cognitive psychology that describes how people naturally favor information that confirms their previously existing beliefs. Experts in the field of behavioral finance find that this fundamental principle applies to investors in notable ways. Because investors seek out information that confirms their existing
What Is Confirmation on a Chart? Confirmation on a chart describes a chart pattern that shows a sustainable stock trading opportunity, which by virtue of its persistence is confirmed (given credibility). This typically requires a minimum of three days that consist of several data points before confirming a new trend or pattern formation is underway.
What Is a Conflict of Interest? A conflict of interest occurs when an entity or individual becomes unreliable because of a clash between personal (or self-serving) interests and professional duties or responsibilities. Such a conflict occurs when a company or person has a vested interest—such as money, status, knowledge, relationships, or reputation—which puts into question
What Is Conflict Theory? Conflict theory, first developed by Karl Marx, is a theory that society is in a state of perpetual conflict because of competition for limited resources. Conflict theory holds that social order is maintained by domination and power, rather than by consensus and conformity. According to conflict theory, those with wealth and power
What Is Confluence? Confluence is the combination of multiple strategies and ideas into one complete strategy. Confluence occurs when two or more separate ideas or strategies are used together to form a comprehensive investment strategy that is in line with an investor’s risk profile and goals. This term can also be used when employing technical
What Is Confusion of Goods? Confusion of goods is a legal term used to describe a situation when the goods or property of two or more parties become commingled to the point where each party’s respective items can’t be readily determined. While the term can apply to money or property, it is most commonly used
What Is a Conglomerate? A conglomerate is a corporation of several different, sometimes unrelated, businesses. In a conglomerate, one company owns a controlling stake in several smaller companies, conducting business separately and independently. Conglomerates often diversify business risk by participating in many different markets, although some conglomerates, such as those in mining, elect to participate
