Collateral: Definition, Types, and Examples
• Collateral is an asset a borrower pledges to a lender to secure a loan. If the borrower fails to meet the repayment terms…
The Collar Options Strategy Explained in Simple Terms
A collar is an options strategy that protects a long stock position by simultaneously buying a put option (the downside hedge) and selling a…
Cost-of-Living Adjustment (COLA) and How Does It Work?
A cost-of-living adjustment (COLA) is an automatic increase in payments—most commonly Social Security and Supplemental Security Income (SSI)—designed to preserve purchasing power when consumer…
Coinsurance: Definition, How It Works, and Example
Definition – Coinsurance is the portion of a covered cost that the insured person must pay, expressed as a percentage, after any deductible has…
Cost of Goods Sold (COGS) Explained With Methods to Calculate It
COGS is the total of the direct costs tied to producing or buying the merchandise a business sells during an accounting period. It includes…
Coefficient of Variation: Definition and How to Use It
What it is – The coefficient of variation (CV) is a unitless measure that compares the amount of dispersion (variability) in a data set…
Understanding Codes of Ethics: Types and Their Practical Uses
A code of ethics (also called an ethical code) is a written statement of the principles and expectations that guide how an organization or…
Consolidated Omnibus Budget Reconciliation Act (COBRA)
• COBRA is a 1985 federal law that lets qualified employees and their families temporarily continue their employer-sponsored group health coverage after certain life…
The 80-20 Rule (Pareto Principle)
**Summary:** The 80-20 rule, or Pareto Principle, states that a small proportion of causes often drive a large proportion of effects — commonly framed…
Coase Theorem Simplified: Economics, Law, and Practical Applications
• The Coase Theorem, named after economist Ronald H. Coase, says that when parties face a dispute over who owns or may use a…