Grading Certificate

Dictionary Says

Definition of 'Grading Certificate'


A document issued by inspectors or an approved grading panel that formally signifies the quality of a commodity. The grading certificate is important because a commodity must be identified as exchange grade to be deliverable. Commodities exchanges issue detailed guidelines describing the characteristics that qualify a commodity as exchange grade.

Investopedia Says

Investopedia explains 'Grading Certificate'


For example, a grading certificate for cocoa would indicate its growth (country of origin), description, condition (hammy or smoky), grade (which indicates the percentage of defective beans in the total) and count (number of beans per kilogram), and state whether the cocoa meets the commodity exchange's standards. The certificate would only be valid for a limited time as determined by the exchange, such as the current delivery month plus one month thereafter.

comments powered by Disqus
Hot Definitions
  1. Legal Monopoly

    A company that is operating as a monopoly under a government mandate. A legal monopoly offers a specific product or service at a regulated price and can either be independently run and government regulated, or government run and regulated.
  2. Closed-End Fund

    A closed-end fund is a publicly traded investment company that raises a fixed amount of capital through an initial public offering (IPO). The fund is then structured, listed and traded like a stock on a stock exchange.
  3. Payday Loan

    A type of short-term borrowing where an individual borrows a small amount at a very high rate of interest. The borrower typically writes a post-dated personal check in the amount they wish to borrow plus a fee in exchange for cash.
  4. Securitization

    The process through which an issuer creates a financial instrument by combining other financial assets and then marketing different tiers of the repackaged instruments to investors.
  5. Economic Forecasting

    The process of attempting to predict the future condition of the economy. This involves the use of statistical models utilizing variables sometimes called indicators.
  6. Chicago Mercantile Exchange - CME

    The world's second-largest exchange for futures and options on futures and the largest in the U.S. Trading involves mostly futures on interest rates, currency, equities, stock indices and agricultural products.
Trading Center