Contango Charge

Contango Charge

Contango, a charge paid by a buyer or seller of securities to continue a transaction by postponing a transfer. The first day after the ending of a Stock Exchange account is 'Contango' day, on which speculators who do not wish to transfer securities may postpone the handing over. For example, if a bull's securities have not risen during the account as expected, he may wish to carry over the bargain into the next settlement. Normally bull contango applies, with bears in effect lending bulls money by not delivering the security sold. When 'uncovered' bears with no goods to deliver outweigh bulls, so that bulls are technically lending securities to bears, there is said to be backwardation. The sum of money paid to bulls by bears for this privilege is also known as backwardation.

Continuation, another name for Contango.

Contracting Out, See Disintegration; Pension; Trade Union.

Conversion, replacement of a loan or security by another carrying a smaller rate of interest. During the cheap money period organized by the late Lord Dalton after World War II, holders of British Government securities were asked to convert them into new loans at lower interest rates or receive their market value in cash.

What next? Journal Of Economics - Economic Journals


consumeraffairs.org.uk

Since then his writings have in turn been increasingly reinterpreted as a special case both by some followers and by some economists who had not wholly accepted his writings. The content of economics is in a state of change, and this consumeraffairs.org.uk site is therefore not a final statement of economic doctrine.

Economics is in the last resort a technique of thinking. The reader will therefore need to make an intellectual effort, more substantial for some web entries than for others, to get the most interest and value out of this website.