What is "compound chocolate"?

Compound chocolate, also known as confectionery coating or chocolate-flavored coating, is a type of chocolate that is made from a combination of cocoa powder, vegetable oil, and sweeteners, such as sugar or corn syrup. Unlike traditional chocolate, which is made from cocoa solids and cocoa butter, compound chocolate does not contain any cocoa butter and is therefore less expensive to produce. Compound chocolate has a smoother and creamier texture than traditional chocolate, and is often used for coating or dipping confections, such as candy bars, cookies, and pretzels. It is also a popular choice for use in industrial baking applications, as it is more stable and has a longer shelf life than traditional chocolate. While compound chocolate is not considered to be as high quality as traditional chocolate, it is a convenient and affordable option for use in many commercial and home-baking applications.