What Is Core Inflation? Core inflation is the change in the costs of goods and services, but it does not include those from the food and energy sectors. This measure of inflation excludes these items because their prices are much more volatile. It is most often calculated using the consumer price index (CPI), which is a
What Is Core Liquidity? Core liquidity refers to the cash and other financial assets that banks possess that can easily be liquidated and paid out as part of operational cash flows (OCF). Examples of core liquidity assets would be cash, government (Treasury) bonds, and money market funds. Key Takeaways Core liquidity is the total of
What Is a Core Liquidity Provider? A core liquidity provider is a financial institution that acts as a middleman in the securities markets. The providers buy large volumes of securities from the companies that issue them and then distribute them in batches to financial institutions who then make them available directly to retail investors. This
What Is the Corn-Hog Ratio? The corn-hog ratio is a calculation for understanding the economic opportunity in raising livestock, used to determine the profitability of raising hogs versus growing and selling corn feed. It is a comparison that takes the price of a hog and divides it by the cost of the corn needed to
What Is Corporate Accountability? The term corporate accountability refers to a public company’s performance in non-financial areas such as social responsibility, sustainability, and corporate governance. Corporate accountability espouses that financial performance should not be a company’s only important goal and that shareholders are not the only people to whom a company must be responsible. In
What Is a Corporate Action? A corporate action is any activity that brings material change to an organization and impacts its stakeholders, including shareholders, both common and preferred, as well as bondholders. These events are generally approved by the company’s board of directors; shareholders may be permitted to vote on some events as well. Some
What Is a Corporate Agent? A corporate agent is a type of trust company that acts on behalf of corporations and some forms of governmental entities. Corporate agents provide various types of banking services for corporate clients, such as check clearing, payment of interest and dividends, and stock purchases and redemptions. They can also collect
What Is a Corporate Bond? A corporate bond is a type of debt security that is issued by a firm and sold to investors. The company gets the capital it needs and in return the investor is paid a pre-established number of interest payments at either a fixed or variable interest rate. When the bond
What Is Corporate Cannibalism? Corporate cannibalism is when a product sees a decrease in sales volume or market share due to the release of some new product that has been introduced by the same company. The new product ends up “eating” demand for the current product, therefore reducing overall sales. This downward pressure can negatively affect both
What Is Corporate Capital? Corporate capital is the mix of assets or resources a company can draw on in financing its business. Corporate capital results from debt and equity financing. In deciding on and managing their capital structure, a company’s management has important decisions to make on the relative proportions of debt and equity to
