What Is a Contingent Liability? A contingent liability is a liability that may occur depending on the outcome of an uncertain future event. Contingent liabilities are recorded if the contingency is likely and the amount of the liability can be reasonably estimated. The liability may be disclosed in a footnote on the financial statements unless
What Is a Contingent Order? A contingent order is an order that is linked to, and requires, the execution of another event. The contingent order becomes live, or is executed, when the event occurs. An example is a stop loss order. The stop loss to sell is contingent upon a security first being bought. A
What Are Contingent Shares? The term contingent shares refers to company stock that is issued to certain shareholders under special circumstances. They act just like regular common stock, except that companies issue them when they meet certain conditions, such as making a profit, meeting earnings expectations, or during mergers and acquisitions (M&A). When a company
What Is a Continuation Pattern? A continuation pattern in the financial markets is an indication that the price of a stock or other asset will continue to move in the same direction even after the continuation pattern completes. There are several continuation patterns that technical analysts use as signals that the price trend will continue.
What Is a Continuation Statement? A continuation statement is an amendment attached to a UCC-1 financing statement. Continuation statements extend the lender’s lien on the borrower’s collateral past the original financing statement’s expiration date. When a lender files a continuation statement, the continuation statement extends the UCC-1 financing statement by five years from the date
What Are Continuing Claims Continuing claims track the number of U.S. residents filing for ongoing unemployment benefits in a given week. Continuing claims measure ongoing unemployment benefits, which is in contrast to initial claims, which track new filings for benefits. In order to be counted among continuing claims, a person must be covered by unemployment
What is the Continuity of Interest Doctrine? The Continuity of Interest Doctrine (CID) requires shareholders of an acquired company to hold an equity stake in the acquiring company to allow tax deferral. The doctrine, (or CID, also known as Continuity of Proprietary Interest) stipulates that a corporate acquisition of a target firm can be done
What Is a Continuous Audit? A continuous audit is an internal process that examines accounting practices, risk controls, compliance, information-technology systems, and business procedures on an ongoing basis. Continuous audits are usually technology-driven and designed to automate error checking and data verification in real time. A continuous-audit–driven system generates alarm triggers that provide notice about
What Is Continuous Compounding? Continuous compounding is the mathematical limit that compound interest can reach if it’s calculated and reinvested into an account’s balance over a theoretically infinite number of periods. While this is not possible in practice, the concept of continuously compounded interest is important in finance. It is an extreme case of compounding, as most
What Are Continuous Operations? Continuous operations are the core profit-making activities within a business or organization that are ongoing and sustained in the event of a business disruption. In this context, it is also known as continuing operations. Continuous operations also can refer to a firm running its business around the clock 24/7, with downtime
