among project participants to poolcollateral, to allow recourse to each other's collateral. Cross-default A provision under which default on one debtobligation triggers default on another debt obligation. Cross hedging Applies to derivative products. Hedging with a futures contract that is different from the underlying being hedged. Use of a hedging instrument different from the security being hedged. Hedging instruments are usually selected to have the highest price correlation to the underlying. Cross-holdings The holding by one corporation of shares in another firm. One needs to allow for cross-holdings when aggregatingcapitalizations of firms. Ignoring cross-holdings leads to double-counting. Cross rates The exchange rate between two currencies expressed as the ratio of two foreign exchange rates that are both expressed in terms of a third currency. Foreign exchange rate between two currencies other than the US dollar, the currency in which most exchanges are usually quoted. Cross-sectional analysis Assessment of relationships among a cross-section of firms, countries, or some other variable at one particular time. Cross-Sectional Ratio Analysis A method of analysis that compares a firm's ratios with some chosen industrybenchmark. The benchmark usually chosen is the average ratio value for all firms in an industry for the time period under study. Cross-sectional approach A statistical methodology applied to a set of firms at a particular time. Cross-share holdings Often used in risk arbitrage. Corporations' or governments' equity share ownership in another corporation's shares. Cross-border bonds Bonds that firmsissue in the international market. Crossed market In the context of general equities, happens when the inside market consists of a highest bidprice that is higher than the lowest offer price. See: Overlap the market. Crossed trade The prohibited practice of offsettingbuy and sell orders without recording the trade on the exchange, thus not allowing other traders to take advantage of a more favorable price. Crossover rate The return at which two alternative projects have the same net present value. Crowd trading Used for listed equity securities. Group of exchange members with a defined area of function tending to congregate around a trading post pending execution of orders. Includes specialists, floor traders, odd-lotdealers, and other brokers as well as smaller groups with specialized functions. See: Priority. Crowding out Heavy federal borrowing that drives interest rates up and prevents businesses and consumers from borrowing when they would like to. Crown jewel A particularly profitable or otherwise particularly valuable corporate unit or asset of a firm. Often used in risk arbitrage. The most desirable entities within a diversified corporation as measured by asset value, earning power, and business prospects; in takeover attempts, these entities typically are the main objective of the acquirer and may be sold by a takeover target to make the rest of the company less attractive. See: Scorched earth policy. Crown Law A law derived from English law (ie. England, Ireland, Canada, PNG, Australia, Hong Kong, Singapore, India, Malaysia). Cum dividend With dividend; said of a stock whose buyer is eligible to receive a declared dividend. Stocks are usually "cum dividend" for trades made on or before the third trading day preceding the record date,