Analysis of Asset Allocation

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collectivism - economic system in which the means of production are owned by the state, which plans the economy, sets prices and output levels, etc.

command economy - see planned economy.

commerce - the buying and selling of goods and the activities of banks and other financial institutions.

commercial bank - a business that trades in money, receiving and holding deposits, paying money according to customers' instructions, lending money, etc.

commercial bill - see bill of exchange.

commercial paper - short-term, discounted and unsecured corporate debt of large American banks and companies issued as a way of borrowing money.

commercial traveler or (US) traveling salesman - alternative names for a sales representative.

commission - money paid to sales representatives, proportional to the total value of the goods they sell; money charged by a bank for undertaking a transaction.

commodities - either goods in general, or specific raw materials or primary products (cereals, metals, tea, coffee, rubber, etc.) traded on special markets.

common pricing - an agreement between companies to sell at the same prices, or to tender at the same price.

common stock - see ordinary shares.

company or corporation (US) - an association of people formally registered as a business (partnership, limited company, etc.).

comparative advantage or comparative cost principle - relative advantage in the production of particular goods over some, but not all, other countries.

compensation - money paid (by an insurer) to someone who has suffered injury or had property lost or damaged

competition - rivalry between businesses in the same market.

competitive advantage - the element that makes one company better than its competitors: a better product or service, lower prices (due to economies of scale), etc.

competitive bidding - see tendering



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