Completion undertaking An undertaking either (1) to complete a project so that it meets certain specified performance criteria on or before a certain specified date, or (2) to repay project debt if the completion test cannot be met. Complexity Theory The theory that processes with a large number of seemingly independent agents can spontaneously organize themselves into a coherent system. Compliance department A department in all organized stock exchanges to ensure that all companies, traders, and brokerage firms comply with Securities and Exchange Commission and exchange rules and regulations. Composite tape See: Tape Composition Voluntary arrangement to restructure a firm'sdebt, under which payment is reduced. Compound Annual Growth Rate Annual return calculated based on each year's previous balances where each previous balance includes both the original principal and all interest accrued from prior years. Best defined by example. If you invest $100 today and make 5% in the first year and reinvest ($105) and make 8% in the second year, the compound annualgrowth rate is 6.489%. The calculation is $100x1.05x1.08=$113.4 which is what you end up with at the end of year two. The average return is [square root(113.4/100) -1]= 0.06489 or 6.489%. Note 1. If we had three compounding periods we would take the cubic root (power of 1/3). Note 2. If we had invested at exactly 6.489 in both periods, we get $100x1.06489x1.06489=$113.4. Note 3. The example is directed to a return - but CAGR could be applied to earnings growth, GDP growth, etc. Compound Annual Return See: Compound Annual Growth Rate Compound growth rate See: Compound Annual Growth Rate Compound interest Interest paid on previously earned interest as well as on the principal. Compound option Option on an option. Compounding The process of accumulating the time value of money forward in time. For example, interest earned in one period earns additional interest during each subsequent time period. Compounding frequency The number of compounding periods in a year. For example, quarterly compounding has a compounding frequency of 4. Compounding period The length of the time period that elapses before interestcompounds (a quarter in the case of quarterly compounding). Comprehensive due diligence investigation The investigation of a firm's business in conjunction with a securitiesoffering to determine whether the firm's business and financial situation and its prospects are adequately disclosed in the prospectus for the offering. Comprehensive Income Comprehensive income is the change in equity of a business enterprise during a period from transactions and other events from non-owner sources. It includes all non-owner changes in equity (in contrast to net income which does not include some changes in equity). Financial Accounting Standards Board (FASB) issued the Statement of Financial Accounting Standards No. 130 (SFAS 130), Reporting Comprehensive Income. For fiscal years beginning after December 15, 1997, SFAS 130 requires the disclosure of both net income and a more 'comprehensive' measure of income which includes four items recorded as owners' equity under previous FASB pronouncements: adjustments to unrealized gains and losses on available-for-sale marketable securities (SFAS 115), foreign currency translation adjustments (SFAS 52), minimum required pension liability adjustments (SFAS 87), and changes