thus reducing the average cost. Constant-growth model Also called the Gordon-Shapiro model, an application of the dividend discount model that assumes (1) a fixed growth rate for future dividends, and (2) a single discount rate. Constant ratio plan Maintaining a predetermined ratio between stock and fixed income investments through regular adjustments of distribution of funds into different investments. See: formula investing. Constant yield method Allocation of annual interest on a zero-coupon security for income tax use. Construction loan A short-termloan to finance building costs. Constructive receipt The date a taxpayer receives dividends or other income, for use in the determination of taxes. Consular Invoice A document prepared by the shipper and certified in the country of origin by a consul of the country of importation. It shows the transaction details and origin of the goods. Consumer Advisory Council (CAC) A statutory body established by Congress in 1976. The Council, with 30 members who represent a broad range of consumer and creditor interests, advises the Federal Reserve Board on the exercise of its responsibilities under the Consumer Credit Protection Act and on other matters on which the Board seeks its advice. Consumer credit Credit a firm grants to consumers for the purchase of goods or services. Also called retail credit. Consumer Credit Protection Act of 1968 Federal legislation establishing rules for the disclosure of the terms of a loan to protectborrowers. See: Truth in lending. Consumer debenture An investmentnoteissued directly to the public by a financial institution. Consumer durables Consumer products that are expected to last three years or more, such as an automobile or a home appliance. Consumer finance company See: Finance company Consumer goods Goods not used in production but bought for personal or household use such as food, clothing, and entertainment. Consumer interest Interest paid on consumer loans; e.g., interest on credit cards and retailpurchases. Consumer Price Index (CPI) The CPI, as it is called, measures the prices of consumer goods and services and is a measure of the pace of US inflation. The US Department of Labor publishes the CPI every month. Consumption tax See: Value-added tax Contagion Excess correlation of delivering or bondreturns. For example, under usual conditions we might observe a certain level of correlation of market returns. A period of contagion would be associated with much higher-than-expected correlation. Some examples are the conjectured contagion in East Asian markets beginning in July 1997 when the Thai currency devalued and the impact across many emerging markets of the Russian default. Contagion is difficult to identify because you need some sort of measure of the expected correlation. It is complicated because correlations are known to change through time, for example, see Erb, Harvey and Viskanta's article in the 1994 Financial Analysts Journal. In periods of negative returns, correlations (and volatility) are known to increase, so what might appear to be excessive may not be contagion. Contango A market condition in which futures prices are higher in the distant delivery months. Contingency An additional amount or percentage added to any cash flow item (ie. Capex). Care is needed to ensure