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What Are the Five C's of Credit

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Essay

What are the five C's of Credit?


Definitions:

Discretionary Order

An order given to a broker allowing them discretion on the execution timing and price of a trade, within certain pre-established parameters.

Limit Order

An order to buy or sell a security at a specific price or better.

Maximum Possible Loss

The worst-case scenario loss that an investment or portfolio could suffer during a specified period.

Short 100 Shares

The action of selling 100 shares of stock that one does not own, betting that the stock's price will decline and it can be repurchased at a lower price for a profit.

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