as growth, cyclical, stable, and energy stocks. CMO REIT A very risky type of Real Estate Investment Trustinvesting in the residual cash flows of Collateralized Mortgage Obligation (CMOs). CMO cash flows are derived from the difference between the rates paid by the mortgageloan holders and the lower, shorter-term rates paid to CMO investors. Co-financing A type of financing in which the different lenders agree to fund under the same documentation and security packages but may have different interest rates, repayment profiles, and terms. Co-manager A second-tier Participant, ranked by size of participation. Co-agent An institution appointed by the issuer as co-transfer agent accepts and transfers certificates and sends daily activity journals to the primary record-keeping agent. A co-agent does not maintain security holder records, but is used to facilitate the transfer of stock in a geographic region not easily accessible to the issuer or its principal transfer agent. Coattail investing A riskytrading practice of making trades similar to those of other successful investors, usually institutional investors. COD transaction See: Delivery versus payment Code of procedure The guide of the National Association of Securities Dealers used to adjudicate complaints filed against NASD members. Coefficient of determination A measure of the goodness of fit of the relationship between the dependent and independent variables in a regression analysis; for instance, the percentage of variation in the return of an asset explained by the market portfolio return. Also known as R-square. Coefficient of Variation A measure of investment risk that defines risk as the standard deviation per unit of expected return. Coface The French Export Credit Agency. Coffee, Sugar & Cocoa Exchange (CS&CE) The New York-based commodity exchange trading futures and options. The CS&CE shares the trading floor at the Commodities Exchange Center. Cofinancing agreements Joint participation of the World Bank and other agencies or lenders in providing funds to developing countries. Coherent Market Hypothesis A hypothesis that the probability density function of the market may be determined by a combination of group sentiment and fundamental bias. Depending on combinations of these two factors, the market can be in one of four states: random walk, unstable transition, chaos, or coherence. Coincident indicators Economic indicators that give an indication of the current status of the economy. Coinsurance effect Refers to the fact that the merger of two firms lessens the probability of default on either firm's debt. Cold-calling Calling potential new customers in the hope of selling stocks, bonds or other financial products and receiving commissions. Collar Refers to the ceiling and floor of the price fluctuation of an underlying asset. A collar is usually set up with options, swaps, or by other agreements. In corporate finance, the collar strategy of buying puts and selling calls is often used to mitigate the risk of a concentrated position in (sometimes) restricted stock. When the restricted owner can't sell the stock, but needs to diversify the risk, a collar transaction is one of the few tools available. Many corporate executives who receive chunks of their compensation in restricted stock need to employ this strategy to mitigate the diversification risk