What Is a Contra Account? A contra account is used in a general ledger to reduce the value of a related account when the two are netted together. A contra account’s natural balance is the opposite of the associated account. If a debit is the natural balance recorded in the related account, the contra account
What Is a Contra Broker? A contra broker is a broker that is taking the opposite side of a transaction initiated by another broker. For example, in a transaction in which a broker wishes to sell securities to another broker, the buyer would be a contra broker for the purposes of that transaction. Conversely, when
What Is a Contract for Differences (CFD)? A contract for differences (CFD) is an arrangement made in financial derivatives trading where the differences in the settlement between the open and closing trade prices are cash-settled. There is no delivery of physical goods or securities with CFDs. Contracts for differences is an advanced trading strategy that
What Is Construction Spending? Construction spending is an economic indicator that measures the amount of spending toward new construction. The U.S. Department of Commerce’s Census Bureau releases the monthly Value of Construction Put in Place Survey (VIP), which looks at residential and non-residential construction in the private sector, as well as state and federal construction spending.
What Is Constructive Receipt? Constructive receipt is an accounting term that requires an individual or business to pay taxes on income despite the fact that the money has not yet been received in actuality. What matters instead is that the recipient of the income is able to control or utilize that money even when it
What Are Consumer Cyclicals? Consumer cyclicals are a category of stocks that rely heavily on the business cycle and economic conditions. Consumer cyclicals include industries such as automotive, housing, entertainment, and retail. The category can be further divided into durable and non-durable sections: Durable cyclicals include physical goods such as hardware or vehicles while non-durables represent
What Is Consumer Surplus? Consumer surplus is an economic measurement of consumer benefits resulting from market competition. A consumer surplus happens when the price that consumers pay for a product or service is less than the price they’re willing to pay. It’s a measure of the additional benefit that consumers receive because they’re paying less
What Is the Consumer and Business Lending Initiative (CBLI)? The Consumer and Business Lending Initiative (CBLI) was a federal program that aimed to resolve the 2008 credit crisis and restore confidence in the economy through the government purchase of a massive amount of private debt. The aim was to unlock credit and kickstart the economy by
What Is a Consumer Credit File? A consumer credit file is a collection of data about an individual’s borrowing and repayment activity. Your credit file contains the information that determines your credit score. When you apply for an automotive, mortgage, or other type of loan, the financial institution will check your credit file to see
What Is the Consumer Credit Protection Act of 1968 (CCPA)? The Consumer Credit Protection Act Of 1968 (CCPA) is federal legislation that created protections for consumers from banks, credit card companies, and other lenders. The act mandates disclosure requirements that must be followed by consumer lenders and auto-leasing firms and has been expanded significantly since
