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Call option - a contract that gives you the right, but not the obligation, to buy an asset (normally a share) for a fixed price.

Capital Gain - a profit made where you buy an asset at one price, and sell later at another, for a profit, so long as you are not doing so often enough to be treated as trading in that type of asset.

Capital Gains Tax - the tax levied on Capital Gains.

Capital Gains Tax Annual Exemption - Any gains up to the exemption, which is set yearly, will not be taxable.

Capped rate mortgage - your interest cannot rise above a predetermined level, but can fall below it. E.g. rate capped at 7% for 5 years. Actual rate starts at say 5%, then rates rise to 10%, but yours only goes up to 7%.

Cash - normally actually means deposit (bank and building society) accounts rather than actual folding money.

Cash Balance Arrangements - A type of Money Purchase Arrangement where, in the event that the funding fails to provide the required level of benefits, it will be made up to that level.

Cash ISA - an Individual Savings Account where investments are limited to deposit accounts.

CAT Standards - Charges, Assess, Terms. The product meets certain criteria (mainly cheapness), laid down by the government. It is important to note that the fact that a product has a CAT standard does not mean that it is any good, and even if good, does not mean that it is suitable for you. Many CAT products achieve CAT Standards by being limited and perhaps lacking features and benefits that you might need.

CGT - see Capital Gains Tax.

Chargeable event - A transaction which leads to a chargable gain.

Chargeable gain - Amount chargeable to capital gains tax from gains made on the disposal of an asset.

Chartism - now more commonly called Technical Analysis

Chattels - personal items that are usually exempt from Capital Gains Tax.

Codicil - an amendment to a Will.

Collared rate mortgage - the opposite of a capped rate mortgage. Your interest rate varies but will not go below a predetermined level. Collared mortgages are not common.

Collectibles - term used to describe things that people collect, and that may or may not have investment potential - e.g. art, antiques.

Commercial mortgage - a mortgage whose purpose and/or security is business related.

Commodities - the trading of raw materials. Not for the normal private investor.

Compliance - the term describing the processes that financial services companies have to go through to ensure correct action.

Compulsory purchase annuity - an annuity that is bought because it is a legal requirement to do so (e.g. certain pension contracts).

Contracting Out - Opting not to be in the State Second Pension Scheme or State Earnings Related Pension Scheme .

Convertible Term Assurance - a type of life policy that offers pure protection but has the ability to be converted to another type of policy.

Convertibles - a class of share that provides a fixed income, but can also be converted, under predetermined conditions, into ordinary shares. Not normally used by private investors.

Conveyance - the term used to describe the legal process associated with house buying/selling.

Cooling off period - a period of time that an investor has in which he can change his mind without loss or penalty.

Coupon - the income paid to holders of bonds and gilts. Not to be confused with Yield.

CPA - see Compulsory purchase annuity.

Critical Illness Insurance - insurance that pays out if you suffer from one of a specified set of conditions such as some forms of cancer, heart attack, stroke and others. (You may need to survive for a period to claim).

Cross Option Agreement - a set of papers drawn up to define what happens in the event that a company shareholder director , or partner dies. Aim is to protect the interests of the family, the firm, and the surviving shareholders / partners