Consumer Price Index For All Urban Consumers (CPI-U) is a measure that examines the changes in the price of a demand of goods and services purchased by urban consumers. The urban consumer population is deemed by many as a better representative measure of the general public because most of the country's population lives in highly populated areas, which represent close to 90% of … [Read more...]
Consumer Confidence Index – CCI Explained
Consumer confidence is the degree of optimism that consumers feel about the overall state of the economy and their personal financial situation. How confident people feel about stability of their incomes determines their spending activity and therefore serves as one of the key indicators for the overall shape of the economy.A survey by the Conference Board that measures how … [Read more...]
Constructive Sale Rule – Section 1259
A section of the Internal Revenue Code that clarifies the transactions that are subject to capital gains taxation. Basically, any transaction that essentially offsets a previously held position is subject to the tax, even if it is not a straight sale of a security. An example of a transaction that falls under the Constructive Sale Rule is a short sale against the box.. … [Read more...]
Compound Accreted Value – CAV
It is a measure of the theoretical value of a zero-coupon bond at any given point in time. Because there are no interest payments unlike with traditional bonds, the interest of a zero-coupon bond accrues until maturity. Therefore, the CAV can be calculated by adding all of the interest earned up to a given point in time to the original price. Calculating a zero-coupon bond's … [Read more...]
Commissioners’ Annuity Reserve Valuation Method – CARVM
CARVM basically denotes statutory cash reserves for annuities. CARVM is calculated according to several different methods. The cash reserve of the annuity must be greater or equal to the value calculated by the CARVM. The CARVM is equal to the greatest net present value of all future guaranteed benefits. CARVM calculations do not only include expenses or lapses in policies. … [Read more...]