What Is a Cash-and-Carry Trade? A cash-and-carry trade is an arbitrage strategy that exploits the mispricing between the underlying asset and its corresponding derivative. The key to profiting from this strategy is the eventual correction in that mispricing. A cash-and-carry trade should not be confused with a carry trade in the context of forex trading;
What Are Cash and Cash Equivalents (CCE)? Cash and cash equivalents refers to the line item on the balance sheet that reports the value of a company’s assets that are cash or can be converted into cash immediately. Cash equivalents include bank accounts and marketable securities, which are debt securities with maturities of less than
What Is Cash-and-Stock Dividend? Cash-and-stock dividend, as its name implies, is when a corporation distributes earnings to its shareholders in both cash and stock as part of the same dividend. The cash portion of the dividend is expressed in cents or dollars per share owned, and the stock portion is expressed as a percentage of the
What Is Cash Available for Distribution (CAD)? Cash available for distribution (CAD) refers to a real estate investment trust’s (REIT) cash-on-hand that is available to be distributed as shareholder dividends. The CAD value is calculated by taking the REIT’s funds from operations (FFO) and subtracting its recurring capital expenditures (CAPEX). CAD is the most liquid
What Are Carbon Credits? Carbon credits, also known as carbon offsets, are permits that allow the owner to emit a certain amount of carbon dioxide or other greenhouse gases. One credit permits the emission of one ton of carbon dioxide or the equivalent in other greenhouse gases. The carbon credit is half of a so-called cap-and-trade program.
What Is a Carbon Tax? A carbon tax is a type of penalty that businesses must pay for excessive greenhouse gas emissions. The tax is usually levied per ton of greenhouse gas emissions emitted. Carbon taxes have been implemented in 35 countries to date. The United States has not enacted a carbon tax although a
What Is a Carbon Disclosure Rating? A carbon disclosure rating is a measure of the environmental sustainability of a company, based on voluntary disclosures by the company itself. The practice is intended to help investors who wish to incorporate environmental, social, and governmental (ESG) factors into their investment decision-making process. The most widely used carbon
What Is Carbon Trade? Carbon trade is the buying and selling of credits that permit a company or other entity to emit a certain amount of carbon dioxide or other greenhouse gases. The carbon credits and the carbon trade are authorized by governments with the goal of gradually reducing overall carbon emissions and mitigating their contribution
What is the Cardboard Box Index? The cardboard box index is used by some investors to gauge consumer goods production. The output of cardboard boxes is believed to be an indicator of future production of consumer goods, since cardboard containers are so common for packaging and shipping these goods. Key Takeaways The cardboard box index
What Is a Cardholder Agreement? A cardholder agreement is a legal document outlining the terms under which a credit card is offered to a customer. Among other provisions, the cardholder agreement states the annual percentage rate (APR) of the card, as well as how the card’s minimum payments are calculated. Key Takeaways The cardholder agreement
