not have to honor any trade reported after being given a "firm out". Confirmation The written statement that follows any "trade" in the securities markets. Confirmation is issued immediately after a trade is executed. It spells out settlement date, terms, commission, etc. Confirmed Letter of Credit A letter of credit which a bank other than the bank that opened it agrees to honor as though they had themselves issued it. This additional confirmation is in addition to the obligation of the bank which issued the letter of credit. Confirming Bank The bank which has confirmed a letter of credit opened by another bank. Conflict between bondholders and stockholders Bondholders and stockholders may have interests in a corporation that conflict. Sources of conflict include dividends, distortion of investment, and underinvestment. Protective covenants in bond documents work to resolve these conflicts. Conforming loans Mortgageloans that meet the qualifications of Freddie Mac or Fannie Mae, which are bought from lenders and issued as pass-through securities. Conglomerate A firm engaged in two or more unrelated businesses. Conglomerate merger A merger involving two or more firms that are in unrelated businesses. Consensus forecast The mean of all financial analysts' forecasts for a company. Consignee The party named in the bill of lading to whom delivery is promised and/or title is passed. Consignment Transfer of goods to a seller while title to the merchandise is retained by the owner. Consol A government bond with no maturity . Popular in Great Britain. The formula for valuing these bonds is simple. The consol payment divided by yield to maturity is the price of the bond. Consolidated financial statement A financial statement that shows all the assets, liabilities, and operating accounts of a parent company and its subsidiaries. Consolidated mortgage bond A bond that covers several units of property, sometimes refinancingmortgages on the properties. Consolidated tape Used for listed equity securities. Combined ticker tapes of the NYSE and the curb. Network A covers the NYSE-listed securities and is used to identify the originating market. Network B does the same for AMEX-listed securities and also reports on securities listed on regional stock exchanges. See: tape. Consolidated tax return A tax return combining the reports of affiliated companies, that are at least 80% owned by a parent company. Consolidation The combining of two or more firms to form an entirely new entity. Consolidation loan A loan that is used to combine and finance payments on other loans. Consortium A group of companies that cooperate and share resources in order to achieve a common objective. Consortium banks A merchant bankingsubsidiary set up by several banks that may or may not be of the same nationality. Consortium banks are common in the Euromarket and are active in loansyndication. Constant dollar Condition in which inflation or escalation is not applicable. Prices and costs are deescalated or reescalated to a single point in time. Constant-dollar plan Method of purchasing securities by investing a fixed amount of money at set intervals. The investorbuys more shares when the price is low and fewer shares when the price is high,