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Terms starting with 'D'
D
A NASDAQ stock symbol specifying that the stock is a new issue.

Daisy Chain
A group of unscrupulous investors who, practicing a kind of fictitious trading or wash selling, artificially inflate the price of a security so that they sell it at a profit.

Dark Cloud Cover
In candlestick charting, a pattern where a black candlestick follows a long white candlestick. It can be an indication of a future bearish trend.
Illustration for Dark Cloud Cover

Data Mining
A type of database application that looks for hidden patterns in large groups of data.

Date Certain
A term used to identify the date at which the specified actions of a contract can be reasonably completed.

Dated Date
The date at which interest begins to accrue on a fixed income security.

Dawn Raid
When a firm or investor buys up a substantial amount of shares in a company (making it a target firm). This is done by a stock broker, acting on behalf of a company, first thing in the morning when the stock markets open. Because the bidding company (the predator) builds a substantial stake in its target at the prevailing stock market price, the takeover costs are likely to be significantly lower than the price of a formal takeover bid.

DAX
An index of 30 top German Stocks.

Day Count
A way of quoting interest rates. Specifies the number of days in an interest payment period.

Day Order
Any order to buy or sell a security that automatically expires if not executed on the day the order is placed.

Day Trader
A stock trader who holds positions for a very short time (from minutes to hours) and makes numerous trades each day. Most trades are entered and closed out within the same day.


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Days Payable Outstanding - DPO
A company's average payable period. Calculated as:
Illustration for Days Payable Outstanding - DPO

Days Sales Outstanding - DSO
A company's average collection period. Calculated as:
Illustration for Days Sales Outstanding - DSO

Days To Cover
A calculation using the aggregate short interest on a stock for the month divided by the average daily share volume for the same period. Also called the short-interest ratio.

DB
Double Bottom. This is a chart formation where a stock will bottom at the same price twice, then bounce. There are also intraday bottoms that are referred to as Double Bottoms.

De-merger
A corporate strategy to sell off subsidiaries or divisions of a company.

Dead Cat Bounce
A temporary recovery from a prolonged decline or bear market, after which the market continues to fall.

Dead Hand Provision
A stipulation on a defense mechanism or poison pill used by companies in order to protect against a merger or takeover by another company. The dead hand provision prevents the removal of the poison pill even if shareholders of the target company favor the takeover.

Deadweight Loss
The costs to society created by an inefficiency in the market.

Deal Flow
The rate at which new proposals are flowing to the underwriters of an investment bank.

Dealer
1. An individual or firm willing to buy or sell securities for their own account.

2. One who purchases goods or services for resale to consumers.


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Dealer Option
An option created upon physical commodities, outside of regular exchange regulations.

Dealer's Market
A market where dealers are assigned for specific securities. The dealers create liquid markets by purchasing and selling against personal inventory.

Dear Money
A situation in which money or loans are very difficult to obtain in a given country. If you do have the opportunity to secure a loan, then interest rates are usually extremely high.

Death Benefit
The amount of life insurance contract that is payable to the beneficiary when the annuitant passes on.

Death Cross
A crossover resulting from a security's long-term moving average breaking above its short-term moving average or support level.

Death Put
An optional redemption feature on a bond that allows the estate of the bond beneficiary to put the bond (back to the issuer) in the event of the beneficiary's death or legal incapacitation.

Death Spiral
A type of loan investors lend to a company in exchange for convertible debt, which, like a convertible bond, typically has provisions that allow the investors to convert the bonds into stock at below-market prices. This can lead to the original shareholders losing control of the company.

Debenture
An unsecured debt backed only by the credit worthiness of the borrower.

Debit
An accounting entry which results in either an increase in assets or a decrease in liabilities on a company's balance sheet or in your bank account.

Debt
An amount of money owed from one person or firm to another


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Debt Assignment
A transfer of debt from a creditor to a third party.

Debt Bomb
This occurs when a major financial institution, such as a multinational bank, defaults on its obligations. This can cause disruption and chaos not only in the financial system of the institutionís home country, but also in the global financial system as a whole.

Debt Consolidation
To combine all several financial liabilities into one loan.

Debt Exchangeable for Common Stock - DECS
A debt instrument that provides the holder with coupon payments in addition to an embedded short put option and a long call on the issuing company's stock.

Debt Financing
When a firm raises money for working capital or capital expenditures by selling bonds, bills, or notes to individual and/or institutional investors. In return for lending the money, the individuals or institutions become creditors and receive a promise to repay principal and interest on the debt.

Debt Overhang
A situation where the debt stock of a country exceeds the country's future capacity to repay.

Debt Ratio
A ratio that indicates what proportion of debt a company has relative to assets. It is calculated by dividing total debts by total assets.

Debt Restructuring
A method whereby companies with outstanding debt obligations alter the terms of the debt agreements in order to achieve some advantage.

Debt Security
A security representing a loan given by an investor to an issuer. In return for the loan, the issuer promises to pay interest and to repay the debt on a specified date.

Debt Service
Cash required in a given period for the repayment of interest and principal of a debt.


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Debt Service Coverage Ratio - DSCR
A ratio often used by bank loan officers when making loans to perspective income property loans. Calculated by:
Illustration for Debt Service Coverage Ratio - DSCR

Debt/Equity Ratio
A measure of a company's financial leverage calculated by dividing long-term debt by shareholders equity. It indicates what proportion of equity and debt the company is using to finance its assets.Note: Sometimes investors only use interest bearing long-term debt instead of total liabilities.
Illustration for Debt/Equity Ratio

Debt/Equity Swap
A refinancing deal in which a debt holder gets an equity position in exchange for cancellation of the debt.

Debtor
A company or individual that owes money.

Debtor in Possession - DIP
A company that continues to operate while under the Chapter 11 bankruptcy process.

Debtor in Possession Financing - DIP Financing
Financing arranged by a company while under the Chapter 11 bankruptcy process.

Decimalization
The process of changing the prices that securities trade at from fractions to decimals.

Deck
A term used to refer to the open orders held by floor brokers on futures exchanges.

Declaration Date
The date the amount of the next dividend payment is set by the board of directors.

Declining Balance Method
A common depreciation system that involves applying the depreciation rate against the undepreciated balance.


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Declining Industry
An industry where growth is decreasing. This stage follows the mature industry phase.

Decoupling
The occurrence of returns on asset classes diverging from their normal pattern of correlation.

Dedicated Portfolio
A form of passive portfolio management that involves the matching of future cashflows with future liabilities.

Dedicated Short Bias
A hedge fund strategy with which the fund manager takes more short positions than long positions.

Deduction
Any item or expenditure subtracted from gross income to reduce the amount of income subject to tax.

Deed
A written legal document by which title to land is conveyed (transferred) between two parties.

Deep Discount Bond
1. A bond that sells at a significant discount from par value.

2. A bond that has a coupon rate significantly less than the prevailing rates of fixed-income securities with similar risk profiles and is selling at a discount from par value.

Default
1. The failure to promptly pay interest or principal when due.

2. The failure to perform on a futures contract as required by an exchange.

Default Risk
The risk that companies or individuals will be unable to pay the contractual interest or principal on their debt obligations.

Defeasance
A provision that voids a bond or loan when the borrower sets aside cash or bonds sufficient enough to service the borrower's debt.


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Defensive Acquisition
The act of firms acquiring other firms and assets for the purpose of defending against market downturns or possible takeovers.

Defensive Buy
An investment that is an attractive buy because it is low risk, not because of its return potential.

Defensive Investment Strategy
A method of portfolio allocation and management aimed at minimizing the risk of losing principal. Defensive investors place a high percentage of their investable assets in bonds, cash equivalents, and stocks that are less volatile than average.

Defensive Stock
A stock that provides a constant dividend and stable earnings. This type of stock is also stable when it comes to the business cycle. It doesn't perform terribly during recessions but doesn't bring in awesome returns during an expansion phase.

Deferment Period
The period directly following a newly issued callable security, during which it cannot be called by the issuer.

Deferred Account
An account that postpones tax liabilities until a later date. Deferred accounts are usually retirement accounts

Deferred Acquisition Costs - DAC
Typically used in the insurance industry, this is when a company defers the sales costs that are associated with acquiring a new customer over the term of the insurance contract.

Deferred Annuity
An annuity contract that delays payments of income, installments, or a lump sum until the investor elects to receive them.

Deferred Charge
A prepaid expense of sorts that will contribute to a company over several years, not just at the time it was incurred. It is recognized on the balance sheet as an asset.

Deferred Income Tax
A liability that results from income already earned, is recognized for accounting but not tax purposes purposes, and is recorded on the balance sheet.


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Deferred Interest Bond
A debt instrument that pays no interest until a date specified in the future.

Deferred Payment Option
An option with all the characteristics of an American vanilla option, with one exception: payment is deferred until the original expiration date.

Deferred Revenue
A liability account used for deposits and other cash receipts prior to the completion of the sale.

Deferred Share
1. A share that does not have any rights to the assets of a company undergoing bankruptcy until all common and preferred shareholders are paid.

2. A method of stock payment to directors and executives of a company through the deposit of shares into a locked account. The value of these shares fluctuate with the market and cannot be accessed by the beneficiary for the purpose of liquidation until they are no longer employees of the company.

3. A share, generally issued to company founders, that restricts their payment of dividends until all other classes have been distributed.

Deficit
A situation in which liabilities exceed assets, expenditures exceed income, imports exceed exports, or losses exceed profits.

Defined Benefit Plan
An employer-sponsored retirement plan for which retirement benefits are based on a formula indicating the exact benefit that one can expect upon retiring. Investment risk and portfolio management are entirely under the control of the company. There are restrictions on when and how you can withdraw these funds without penalties.

Defined Contribution Plan
A retirement plan wherein a certain amount or percentage of money is set aside each year for the benefit of the employee. There are restrictions as to when and how you can withdraw these funds without penalties.

Deflation
The rate at which the general level of prices for goods and services is falling. The opposite of inflation.

Degearing
The action of a company altering its capital structure by replacing long-term debt with equity, thereby easing the burden of interest payments and also increasing management's flexibility.

Deleted
A security that is no longer included on a specified market.


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Deleverage
The reduction of financial instruments or borrowed capital previously used to increase the potential return of an investment. It is the opposite of leverage.

Deleveraged Floater
A fixed-income investment with a floating rate tied to a specific index with less than a one for one payback ratio.

Delinquent
A term describing the failure to meet required obligations according to schedule.

Delisting
When the stock of a company is removed from a stock exchange.

Delivered Ex Ship - DES
A trade term requiring the seller to deliver goods to a buyer at an agreed port of arrival. The seller remains responsible for the goods until they are delivered.

Delivery
The act whereby an underlying commodity, security, cash value, or delivery instrument covering the commodity is tendered and received by the contract holder.

Delivery Date
1. The final date by which the underlying commodity for a futures contract must be delivered in order for the terms of the contract to be fulfilled.

2. The maturity date of a currency forward contract.

Delivery Instrument
A document that stands in lieu of the physical asset underlying the contract, during the delivery of the futures contract.

Delivery Month
The month in which a contract expires and delivery of the underlying asset or cash is required for fulfillment.

Delivery Notice
A notice of delivery, written by the short position in a futures contract, informing the clearing house of the intent and details of delivering a commodity for settlement.


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Delivery Option
An option added to some futures contracts permitting the short position to determine the combination of timing, location, quantity, and quality of the underlying commodity stated in the delivery notice.

Delivery Price
A price for the delivery of underlying commodities upon the expiration of futures contracts. This price is fixed by clearing houses.

Delivery Versus Payment - DVP
A securities industry procedure in which the buyer's payment for securities is due at the time of delivery. Security delivery and payment are simultaneous.

Delta
The ratio comparing the change in the price of the underlying asset to the corresponding change in the price of a derivative.

Delta Hedging
A hedging strategy using a portfolio of options that are insensitive to the changes in the price of an underlying asset.

Delta Neutral
A portfolio consisting of positions with offsetting positive and negative deltas. The deltas balance out to bring the net change of the position to zero.

Demand
A consumer's desire and willingness to pay for a good or service.

Demand Deposit
An account where deposited funds can be withdrawn at any time.

Demand Note
A loan with no fixed term or set duration of repayment. It can be recalled upon the lenders request, assuming the notice required by the provisions of the loan are met.

Demand-Pull Inflation
A situation in which inflation increases because of a continual increase in consumer demand.


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Dematerialization - DEMAT
The move from physical certificates to electronic book keeping. Actual stock certificates are slowly being removed and retired from circulation in exchange for electronic recording.

Demutualization
The process of changing corporate structure from a mutual fund company to some other form, such as a limited liability or corporation.

Denomination
The stated value found on financial instruments.

Department of Labor - DOL
The U.S. department that helps to regulate qualified plans. The DOL enforces Title I of the Employee Retirement Income Security Act (ERISA), which, in part, establishes participants' rights and fiduciaries' duties.

Dependency Ratio
A ratio indicating the number of dependents (aged 0-14 and over the age of 65) to the total population (aged 15-64).
Illustration for Dependency Ratio

Dependent
A person who relies on someone else for financial support. The taxpayer supporting the dependent is allowed to claim dependency exemptions.

Depletion
An accounting term describing the amortization of assets that can be physically reduced.

Deposit
1. A transaction involving a transfer of funds to another party for safekeeping.

2. A portion of funds that is used as security or collateral for the delivery of a good.

Deposit/Withdrawal at Custodian - DWAC
The automated system for deposits and withdrawals of securities from the Depository Trust Company (DTC).

Depository Receipt
A negotiable financial instrument issued by a bank to represents a foreign company's publicly traded securities. The depository receipt trades on a local stock exchange.


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Depository Trust & Clearing Corporation - DTCC
Established in 1999, the DTCC is a holding company consisting of 5 clearing corporations and 1 depository, making it the world's largest financial services corporation dealing in post trade transactions.

Depository Trust Company - DTC
One of the world's largest securities depositories, it holds in excess of $10 trillion worth of securities in custody. The DTC acts like a clearing house to settle trades in corporate and municipal securities.

Depository Trust Company Tracking - DTCT
A service, used by underwriting firms, that provides a method of tracking the exact path of purchases and sales of newly issued securities.

Depreciated Cost
Calculated by subtracting the amount of depreciation claimed from the original cost of an asset.

Depreciation
1. An expense recorded to reduce the value of a long-term tangible asset. Since it is a non-cash expense, it increases free cash flow while decreasing the amount of a company's reported earnings.

2. A decrease in the value of a particular currency relative to other currencies.

Depressed
A description of a market, security, or product that is experiencing weak demand and lowering prices.

Depression
A severe and prolonged recession characterized by inefficient economic productivity, high unemployment, and falling price levels.

Depth
A term describing the ability of a security to absorb buy and sell orders.

Deregulation
The reduction or elimination of government power within a particular industry. Deregulation is usually enacted to create more competition within an industry.

Derivative
A security, such as an option or futures contract, whose value depends on the performance of an underlying security or asset.


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Designated Order Turnaround - DOT
An electronic system that increases order efficiency by routing orders for listed securities directly to a specialist on the trading floor, instead of through a broker.

Devaluation
Lowering the value of a country's currency compared to the value of a commodity or to the value of another country's currency.

Development Stage
A company that is focusing a majority of its attention on research & development. Because attention is focused on research, earnings are usually very small or nothing.

Dhaka Stock Exchange - DSE
The stock exchange headquartered in Dhaka, Bangladesh.

Dialing and Smiling
A slang term for the practice of cold calling.

Diamonds
1. An extremely hard gemstone used mainly for jewelry and tools.

2. An exchange traded security, issued by the American Stock Exchange, that replicates the movements in the Dow Jones Industrial Average.

Differential
The amount of fluctuation of the delivery location and grade of deliverables that a futures contract permits.

Diffusion Index
A measure of the percentage of stocks that have advanced in price or are showing a positive momentum over a defined period. It is used in the technical analysis of stocks.

Digital Option
An option whose payout is fixed after the underlying stock exceeds the predetermined threshold or strike price. Also referred to as "binary" or "all-or-nothing option."

Diluted Earnings Per Share - Diluted EPS
The earnings per share (EPS) if all convertible securities were exercised.


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Dilution
A reduction in earnings per share of common stock that occurs through the issuance of additional shares or the conversion of convertible securities.

Dilutive Acquisition
An acquisition that will decrease the acquiring company's EPS.

Direct Access Trading - DAT
A system that allows a client to trade directly with another client, a market maker on NASDAQ, or a specialist on the floor of an exchange without broker interference.

Direct Cost
A cost that can be directly traced to producing specific goods or services.

Direct Deposit
1. When the IRS deposits your tax refund directly into your bank account rather than mailing you a check.

2. When your employer deposits your paycheck directly into your bank account rather than issuing you a physical check.

Direct Participation Program - DPP
A business venture designed to let investors participate directly in the cash flow and tax benefits of the underlying investment.

Direct Public Offering - DPO
Where a company raises capital by marketing its shares directly to its own customers, employees, suppliers, distributors and friends in the community. DPOs are an alternative to underwritten public offerings by securities broker-dealer firms where a company's shares are sold to the broker's customers and prospects.

Direct Quote
A foreign exchange rate quoted as the domestic currency per unit of the foreign currency.

Direct Repurchase
A company's plan to buy back its own shares from the marketplace, thereby reducing the number of outstanding shares.

Direct Rollover
A distribution of eligible rollover assets from a qualified plan, 403(b) plan, or a governmental 457 plan to a Traditional IRA, qualified plan, 403(b) plan, or a governmental 457 plan; or a distribution from an IRA to a qualified plan, 403(b) plan or a governmental 457 plan.


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Direct Stock Purchase Plan
A plan in which shares are sold directly to investors, instead of through a broker.

Direct Tax
A tax that cannot be shifted onto others.

Directed Order
A customer order where the customer gives specific instructions to the broker concerning the orders routing destination.

Directional Movement Index - DMI
An indicator developed by J. Welles Wilder for identifying when a definable trend is present in an instrument. That is, the DMI tells whether an instrument is trending or not.

Directional Trading
A general term referring to the strategy used by investors that open positions, either long or short, on the belief that they are able to correctly predict the movement of price in a security.

Dirty Float
A system of floating exchange rates in which the government occasionally intervenes to change the direction of the value of the country's currency.

Dirty Price
A bond price that includes accrued interest.

DIS
Drooling Idiot Syndrome
This is Triggered by CIS Herding (Please See CIS Herding)

Discharge in Bankruptcy
When a bankrupt person or company is legally free and clear of any obligation to repay certain debts.

Disclosure Statement
A document explaining the rules of the IRA in plain, nontechnical language. This must be provided to the IRA owner at least 7 days before the IRA is established; or it can be provided to the IRA owner at the time the IRA is being established providing the IRA owner is given 7 days within which he/she may revoke the IRA.


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Discount
The difference between the lower price paid for a security and the security's face amount at issue.

Discount Bond
A bond that is valued at less than its face amount.

Discount Broker
A stockbroker who charges a reduced commission, but provides no investment advice.

Discount Margin - DM
The return earned in addition to the index underlying the floating rate security.

Discount Note
An unsecured corporate debt that is issued at a discount and matures at par. It is similar to a zero coupon bond or T-bill. Discount notes give institutional and retail investors convenient choices with respect to the investment size and maturity date for a short-term investment.

Discount Rate
1. The interest rate that an eligible depository institution is charged to borrow short term funds directly from a Federal Reserve Bank.

2. The interest rate used in determining the present value of future cash flows.

Discount Window
The location at the Federal Reserve where financial institutions go to borrow money at the discount rate.

Discounted Cash Flow - DCF
A method used to estimate the attractiveness of an investment opportunity.

Discretionary Account
An account that allows a broker to buy and sell securities without the client's consent.

Discretionary Income
The amount of an individual's income available for spending after the essentials have been taken care of.


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Discretionary Order
An order giving a broker the ability to decide when to buy/sell securities at the best possible price for the customer. Some discretionary orders place restrictive terms to limit the amount of discretion the broker has.

Diseconomies of Scale
An economic theory that describes a situation in which economies of scale no longer function for a firm. Rather than experiencing continued decreasing costs per increase in output, firms see an increase in marginal cost when output is increased.
Illustration for Diseconomies of Scale

Disinflation
A slowing of the rate at which prices increase. Typically, this occurs during a recession as sales drop and retailers are not able to pass on higher prices to customers.

Disintermediation
1. In finance, withdrawal of funds from intermediary financial institutions, such as banks and savings and loan associations, in order to invest them directly.

2. Generally, removing the middleman or intermediary.

Disinvestment
1. Refers to the sale or liquidation of an asset or subsidiary of an organization or government. Also known as divestiture.

2. A reduction in capital expenditure, or when a company decides to not replace depleted capital goods.

Dismal Science
A slang term used to describe Economics.

Disposable Income
The amount of after-tax income that is available to divide between spending and personal savings.

Disposition
Getting rid of an asset or security through a direct sale or some other method.

Distressed Sale
An urgent sale of assets because of negative conditions.

Distressed Securities
When a company is going through hard times and, as a result, the market value of its securities or assets fall substantially in value.


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Distribution
1. An occurrence whereby trading volume is, without any price appreciation, higher than that of the previous day.

2. A removal of assets from a retirement account that is paid to the retirement account owner or beneficiary.

3. A company's payment of cash, stock, or physical products to their shareholders.

Distribution in Kind
A distribution made in the form of stock rather than cash.

Divergence
Occurs when the trend of a security's price does not correspond with the trend of an indicator.

Diversification
A risk management technique that mixes a wide variety of investments within a portfolio. It is designed to minimize the impact of any one security on overall portfolio performance.

Diversified Common Stock Fund
A mutual fund that invests its assets in a wide range of common stocks. The fund's objectives can be growth, income, or a combination of both.

Diversity Score
The measure of diversification in a portfolio weighted by industry that is behind a collateralized bond obligation (CBO).

Divestiture
Refers to the sale of a subsidiary company, also called "spin-off."

Dividend
A cash payment from profits announced by a company's board of directors and distributed among stockholders.

Dividend Clawback
An arrangement under which those financing a project agree to contribute, as equity, any prior dividends received from the project to the extent that any cash shortages are covered.

Dividend Discount Model - DDM
A procedure for valuing the price of a stock by using predicted dividends and discounting them back to present value. The idea is that if the value obtained from the DDM is higher than what the shares are currently trading at, then the stock is undervalued.
Illustration for Dividend Discount Model - DDM


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Dividend Enhanced Convertible Stock - DECS
Preferred stock that provides the holder with premium dividends in addition to an embedded short put option and a long call on the issuing company's stock.

Dividend Imputation
An arrangement in Australia that eliminates the double taxation of dividends.

Dividend Payout Ratio
The percentage of earnings paid to shareholders in dividends.Calculated as:
Illustration for Dividend Payout Ratio

Dividend Policy
The policy a company uses to decide how much it will pay out to shareholders in dividends.

Dividend Reinvestment Plan - DRIP
A plan offered by a corporation allowing investors to reinvest their cash dividends by purchasing additional shares or fractional shares on the dividend payment date.

Dividend Tax Credit
A type of tax incentive in Canada that provides a credit towards tax payable on dividends received from Canadian corporations.

Dividend Yield
An indication of the income generated by a share of stock. Dividend yield is calculated as:
Illustration for Dividend Yield

Diworsification
The process of adding to one's portfolio in such a way that the risk/return tradeoff is worsened.

DJF
In currencies, this is the abbreviation for the Djibourti Franc.

DKK
In currencies, this is the abbreviation for the Danish Krone.


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Do Not Increase - DNI
Instructions on a good-till-cancelled buy-limit or stop order that tell a broker not to increase the number of shares bought or sold in the event of a stock dividend or stock split.

Do Not Reduce - DNR
A trade type used on an buy or sell order. It tells the broker not to decrease the limit price on buy-limit and sell-stop orders on the record date of a cash dividend.

Dog
One of the four categories (quadrants) of the BCG growth-share matrix that represents the division within a company that has a small market share in a mature industry.

Dog Eat Dog
When the market for a good or service is ruthlessly competitive.

Dogs of the Dow
An investing strategy that consists of buying the 10 DJIA stocks with the highest dividend yield at the beginning of the year. The portfolio should be adjusted at the beginning of each year to include the 10 highest yielding stocks.

Doing the Reverse Desk
A slang phrase referring to a tactic a hedge fund would use to try to mislead other funds that attempt to mimic its trades.

Doji
A name for candlesticks that provide information on their own and also feature in a number of important patterns. Dojis form when a security's open and close are virtually equal.
Illustration for Doji

Dollar Cost Averaging - DCA
The technique of buying a fixed dollar amount of a particular investment on a regular schedule, regardless of the share price. More shares are purchased when prices are low, and fewer shares when prices are high.

Dollar Roll
A special type of repurchase agreement in which the security, transferred to the investor as collateral, is a mortgage-backed security. The investor who sells the security gives up the cash flows during the roll period, but has use of the proceeds.

Domicile
The location where an individual, partnership, or corporation establishes permanent residence as per legal obligations.


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Don't Know - DK
A slang expression for an out trade that is used when there is a discrepancy in the details of a trade.

Donchian Channels
A moving average indicator developed by Richard Donchian. It plots the highest high and lowest low over the last period time intervals.

Donor Advised Fund
A private fund administered by a third party and created for the purpose of managing charitable donations on behalf of an organization, family, or individual.

Doomsday Call
A call provision added to fixed income securities that allows for early redemption by the issuer if certain conditions are favorable.

DOP
In currencies, this is the abbreviation for the Dominican Republic Peso.

Dotcom
A company that embraces the internet as the key component in its business.

Double Barreled
Bonds secured by the pledge of two or more sources of repayment.

Double Barrier Option
An option with two distinct triggers that define the allowable range for the price fluctuation of the underlying asset. In order for the investor to receive a payout, one of two situations must occur; the price must reach the range limits (for a knock-in) or the price must avoid touching either limit (for a knock-out).

Double Bottom
A charting pattern used in technical analysis. It describes the drop of a stock (or index), a rebound, another drop to the same (or similar) level as the original drop, and finally another rebound.
Illustration for Double Bottom

Double Dip Recession
When the gross domestic product (GDP) growth slides back to negative after a quarter or two of brief positive growth. In other words, a recession followed by a short-lived recovery, followed by another recession.


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Double Dipping
For brokerage firms, when a broker puts commissioned products into a fee-based account. The broker makes money from both the client and the commission.

Double Gearing
Used to describe situations where multiple companies are using shared capital to buffer against risk occurring in separate entities without the proper documentation of exposure.

Double Taxing
A tax law that results in the same earnings being subjected to taxation twice. A company's income is taxed initially and then the shareholders and investors are taxed on the distributions they receive from the company.

Double Top
A term used in technical analysis to describe the rise of a stock, a drop, another rise to the same level as the original rise, and finally another drop.
Illustration for Double Top

Double Witching
Similar to triple witching, but instead of three classes of options or futures expiring on the same day, double witching is when only two classes (any two) are expiring. The three classes are stock options, index options, and index futures.

Dove
An economic policy advisor that promote the maintenance of low interest rates. Their premise is that inflation and its negative effects upon society are minimal.

Dow Divisor
A number used in the calculation of the Dow Jones Industrial Average that accounts for stock splits and stock dividends.

Dow Jones Industrial Average - DJIA
The Dow Jones Industrial Average is a price-weighted average of 30 significant stocks traded on the New York Stock Exchange and the NASDAQ. The DJIA was invented by Charles Dow back in 1896.

Dow Jones Transportation Average - DJTA
The Dow Jones Transportation Average is a price-weighted average of 20 transportation stocks traded in the United States. The average was started back in 1884.

Dow Jones Utility Average - DJUA
The Dow Jones Utility Average is a price-weighted average of 15 utility stocks traded in the United States. The DJUA was started back in 1929.


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Dow Theory
A theory which says the market is in an upward trend if one of its averages (industrial or transportation) advances above a previous important high, it is accompanied or followed by a similar advance in the other.

Down Round
A round of financing where investors purchase stock from a company at a lower valuation than the valuation placed upon the company by earlier investors.

Down Volume
A stock volume that closes at a price lower than the previous day's close.

Down-and-In Option
A form of a knock-in option whose payoff is determined by the price of the underlying asset sinking to the barrier price level.

Down-and-Out Option
A type of knock-out barrier option that ceases to exist when the price of an underlying security sinks to a specific barrier price level.

Downgrade
A negative change in the rating of a security.

Downside
The potential dollar amount by which the market or a stock could fall.

Downside Risk
An estimation of a security's potential to suffer a decline in price if the market conditions turn bad.

Downsize
Reducing the size of a company by eliminating workers and/or divisions within the company.

Downstream
Refers to oil and gas operations after the production phase and through to the point of sale.


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Downtick
A transaction on an exchange occurring at a price below the previous transaction.

Downtick Volume
The share volume of a security that trades at a price lower than its previous price.

Drag Along Rights
A right that enables a majority shareholder to force a minority shareholder to join in the sale of a company. The majority owner doing the dragging must give the minority share holder the same price, terms, and conditions as any other seller.

Dragon Bond
A bond that is issued in Asia but denominated in U.S. dollars.

Drawdown
The peak to trough decline during a specific record period of an investment or fund. It is usually quoted as the percentage between the peak to the trough.

Dread Disease Rider
A special addition to a life insurance policy that gives a percentage of the death benefit if a person is diagnosed with a serious disease (such as cancer or heart disease).

Drill-Bit Stock
A term used to describe shares that trade for prices less than one dollar. The fractional prices are comparable to the diameter measures of drill-bits found in a hardware store.

Drive-By Deal
Slang referring to a deal in which a venture capitalist invests in a startup with the goal of a quick exit strategy. The VC takes little to no role in the management and monitoring of the startup.

Drop Lock
An arrangement whereby the interest rate on a floating rate note or preferred stock becomes fixed if it falls to a specified level.

Drought Sale
When a farmer is forced to sell more animals than in a typical year because of poor weather conditions. The profits from the livestock sales can be deferred to the following year, even if the proceeds exceed the losses.


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Dry Gas
Dry Gas is a natural gas from wells that does not have a significant content of liquid hydrocarbons or water vapour. Dry gas can also be used to describe gas that has had all liquid removed by a treatment process.

Dry Powder
A slang term for cash reserves kept on hand to cover future obligations.

DT
This can be one of two terms
Daytrade or Double Top so just observe how it is used in the sentence.

Du Pont Analysis
A method of performance measurement that was started by the DuPont Corporation in the 1920s, and has been used by them ever since. With this method, assets are measured at their gross book value rather than at net book value in order to produce a higher ROI.

Du Pont Identity
An expression breaking down return on equity (ROE) into three parts: profit margin, total asset turnover, and financial leverage. The Du Pont identity tells us that ROE is affected by 3 things: -Operating efficiency (as measured by profit margin) -Asset use efficiency (as measured by total asset turnover) -Financial leverage (as measured by the equity multiplier)

Dual Class Stock
Dual stock issued for a single company with varying classes indicating the different voting rights and dividend payments.

Dual Currency Deposit
A fixed deposit with variable terms for the currency of payment. Deposits are made in one currency, but withdrawals at maturity occur either in the currency of the initial deposit or in another agreed upon currency.

Dual Currency Issue
A eurobond that pays interest (makes coupon payments) in one currency but pays the principal in a different currency.

Dual Exchange Rate
A system where there is a fixed official exchange rate and an illegal market-determined parallel exchange rate.

Dual Income with No Kids - DINKS
Refers to a family where the husband and wife both earn income, and they have no children.


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Dual Listing
The listing of a company's shares on more than one stock exchange.

Dual Purpose Fund
A fund created by a closed-ended investment company that offers two classes of stock. Each class offers entitlements to either income or capital appreciation.

Dually Employed With Kids - DEWKS
This refers to a family in which a husband and wife with child dependants both earn income.

Due Bill
A financial instrument used to document and identify the seller's obligation to deliver securities sold to the buyer.

Due Diligence - DD
1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to a sale.

2. Generally, due diligence refers to the care a reasonable person should take before entering in an agreement or transaction with another party.

Due Diligence Meeting
The process of careful investigation by an underwriter to ensure that all material information pertinent to a security issue has been disclosed to prospective investors.

Dumbbell
An investment strategy, used mainly for bonds, where holdings are heavily concentrated in both very short and long term maturities.

Dummy Director
A person on a company's board of directors who votes and acts on the wishes of a non board member.

Dummy Shareholder
A person who holds shares in his or her name, but the shares are really owned by someone else.

Dumping
1. In international trade, this occurs when one country exports a significant amount of goods to another country at prices much lower than in the domestic market.

2. A slang term for selling a stock with little regard for price.


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Dunning
The process of communicating with customers to ensure the collection of accounts receivable.

Duopoly
A situation in which two companies own all or nearly all of the market for a given type of product or service.

Durables
A category of consumer goods, durables are products that do not have to be purchased frequently. Some examples of durables are appliances, home and office furnishings, lawn and garden equipment, consumer electronics, toy makers, small tool manufacturers, sporting goods, photographic equipment, and jewelry.

Duration
The measure of the price sensitivity of a fixed-income security to an interest rate change of 100 basis points. Calculation is based on the weighted average of the present values for all cash flows.

Dutch Auction
An auction where the price on an item is lowered until it gets its first bid, and then the item is sold at that price.

Dwarf
A name given to a pool of mortgage-backed securities, issued by Fannie Mae, with a maturity of 15 years.





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