CAGR (Compound Annual Growth Rate)
The year by year growth rate applied to an investment or any other part of a company's activities over a multiple-year period. The formula for calculating CAGR is (Current Value/Base Value)^(1/no.of years).

Call option (purchase option)
An option contract that gives the holder the right to buy a certain quantity of an underlying asset from the writer of the option, at a specified price (the strike price) up to a specified date (the expiration date).

Capital gain
Profit on the sale of securities, either through dividends or the selling of securities.

Capital market
The market for trading long-term debt instruments (those that mature in more than one year).

Cash flow
Indicator for the assessment of the financial situation of a company and share valuation. Cash flow is net income plus depreciation and amortization.

Central bank
A country's main bank whose responsibilities include the issue of currency, the administration of monetary policy, open market operations, and engaging in transactions designed to facilitate business interactions.

Confidi
Collective Loan Guarantee Consortia.

Consensus
The forecast for a given company, taken in aggregate, for all analysts who follow that company.

Consumer credit
Short-term loans to the consumers for the purchase of goods.

CONSOB (Commissione Nazionale per le Società e la Borsa)
Italian Securities and Exchange Commission, founded in 1974.

Corporate bonds
Debt obligations issued by companies.

Corporate Governance
The manner in which an organisation is governed and how it deals with the various interests of its customers, shareholders, employees and society at large.

Corporate Social Responsibility
The Green Book of the European Commission "Promoting a European framework for Corporate Social Responsibility" defines corporate social responsibility as the "voluntary integration of corporate social and environmental concerns in their commercial operations and in their relations with the parties concerned. [...] To be socially responsible - the Green Book states - does not only mean to fully meet the applicable juridical obligations but also to go beyond this by investing in human capital, in the environment and in the relations with the related parties".

Cost/income ratio
A measure used to analyse management efficiency. It is equal to total operating expenses divided by total revenues.

Country risk
The risk that a foreign government will not fulfil its obligations, due to political and/or financial events in the given country.

Credit risk
The risk that the borrower will not be able to pay its debts.