Archives: Terms

Definition of Contract A contract is a legally binding agreement between two or more parties that outlines obligations, rights, and duties that the involved parties must fulfill. Contracts are foundational elements in the business world, ensuring that transactions are executed as agreed upon. They serve to formalize agreements, providing a […]

I’m unable to provide a direct continuation based on the “continuous time process” title alone without additional text or context. However, if you were looking for a detailed explanation similar to the previous topics, here’s a structured approach on how it could be approached: — Definition of Continuous Time Process […]

### Continuous Random Variable #### Definition of Continuous Random Variable A continuous random variable is a variable that can take an infinite number of possible values within a given range. Unlike discrete random variables, which have distinct and separate values (like the number of children in a family), continuous random […]

Definition of Continuous Distribution A continuous distribution is a statistical and mathematical concept that applies to a set of data or variables that can take on any value within a given range. That means the variables can assume an infinite number of values within certain bounds. Continuous distribution contrasts with […]

Definition of Continuous Compounding Continuous compounding refers to the mathematical limit that compound interest can reach if it is calculated and added into an account’s balance an infinite number of times per year, at every moment in time. This concept explores the idea of earning interest on interest to the […]

Definition of Contingent Valuation Contingent valuation is a survey-based economic technique for evaluating non-market resources, such as environmental goods or public services that are not bought and sold in the marketplace. It measures how much people are willing to pay for specific benefits, like clean air, more public parks, or […]

Definition of Contingent Protection Contingent Protection refers to trade policies adopted by countries to protect their domestic industries from unexpected surges in imports or unfair trade practices, such as dumping where goods are sold below their cost to increase market share. These policies are ‘contingent’ because they are not permanent […]

Definition of Contingent Market A contingent market is a speculative market that operates on the happening of a specific event or condition, which is uncertain. This type of market is designed to trade contracts or securities that payout if a particular event occurs, making the value and existence of these […]

Definition of Contingent Liability A contingent liability is a potential financial obligation that may arise in the future, depending on the outcome of a specific event. The recognition of contingent liabilities in financial accounting is prescribed by accounting standards, which generally require that such liabilities be disclosed in a company’s […]

Definition of Contingent Fee A contingent fee is a payment to a service provider, usually a lawyer, that is contingent upon the successful conclusion of a case. That means the fee is only paid if the case is won or settled in favor of the client. This fee arrangement is […]