What Is Cash Flow After Taxes? (CFAT) Cash flow after taxes (CFAT) is a measure of financial performance that shows a company’s ability to generate cash flow through its operations. It is calculated by adding back non-cash charges such as amortization, depreciation, restructuring costs, and impairment to net income. CFAT is also known as after-tax
What Is a Controlled Foreign Corporation (CFC)? A controlled foreign corporation (CFC) is a corporate entity that is registered and conducts business in a different jurisdiction or country than the residency of the controlling owners. In the United States, a CFC is a foreign corporation in which U.S. shareholders own more than 50% of the
What Is CFLEX? CFLEX is an electronic trading platform for customized options, run by the Cboe Options Exchange (Cboe) since 2007. It allows traders to trade options with customizable variables automatically, electronically, and anonymously instead of having to handle each trade by hand because of the unique terms of each option. CFLEX is an extension
What Is the Commodity Futures Modernization Act (CFMA)? The Commodity Futures Modernization Act (CFMA), signed into law on Dec. 21, 2000, overhauled U.S. financial regulations in response to rapid growth in over-the-counter (OTC) derivatives. CFMA clarified the roles of the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) in regulating an expanded
What Is a Certified Financial Planner (CFP)? Certified Financial Planner (CFP) is a formal recognition of expertise in the areas of financial planning, taxes, insurance, estate planning, and retirement saving. Owned and awarded by the Certified Financial Planner Board of Standards, Inc., the designation is awarded to individuals who successfully complete the CFP Board’s initial
What Is the CFP Franc (XPF)? The CFP franc (XPF) is the official currency of four French overseas island collectivities: French Polynesia, New Caledonia, Wallis, and Futuna. The currency was introduced in 1945 to protect the colonies from the post-Second World War devaluation of the French franc and is subdivided into 100 centimes. The XPF
What Is Cost and Freight (CFR)? Cost and freight (CFR) is a legal term used in foreign trade contracts. In a contract specifying that a sale is cost and freight, the seller is required to arrange for the carriage of goods by sea to a port of destination and provide the buyer with the documents necessary
What Is Capital Gains Exposure? Capital gains exposure is an assessment of the extent to which a stock fund or other similar investment fund’s assets have appreciated or depreciated. Capital gains exposure may have tax implications for investors. Understanding Capital Gains Exposure (CGE) Positive capital gains exposure would mean that the assets in the fund
What Is the Chaikin Oscillator? The Chaikin oscillator is named for its creator Marc Chaikin. The oscillator measures the accumulation-distribution line of moving average convergence-divergence (MACD). To calculate the Chaikin oscillator, subtract a 10-day exponential moving average (EMA) of the accumulation-distribution line from a 3-day EMA of the accumulation-distribution line. This measures momentum predicted by oscillations around the
What Is the Chain Ladder Method? The Chain Ladder Method (CLM) is a method for computing the claims reserve requirement in an insurance company’s financial statement. The chain ladder method is used by insurers to forecast the amount of reserves that must be established in order to cover projected future claims by projecting past claims experience
