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Here are Finance dictionary terms beginning with D.
Please note these definitions are all copyright of BusinessEconomics.com and no one is allowed to use them without express written confirmation from BusinessEconomics.com. Copyright BusinessEconomics.com Days to Cover This is the short interest in a stock divided by the average daily trading volume in the stock. For example if short interest in a stock is 4 million shares and average daily trading volume is 2 million shares then the Days to Cover or "short interest ratio" is 2. Debenture a fixed interest rate unsecured loan to a company. The debenture holder can normally sell the debenture to another party at a prevailing secondary market price. A debenture holder does not have voting rights inn the company. Debt–Equity Ratio the ratio of a firm’s debt to its equity. Delivery Month the month in which a contract expires and delivery of the underlying asset is required or the contract is settled for cash. Default a situation when an economic agent fails to meet a contractural payment of interest or principal. Default Risk the risk that an economic agent (company, government or individual) will not pay either the interest and or principal on a debt obligation. Defensive shares are shares that tend to fluctuate less than the market and have a beta coefficient of less than one. Derivative a contract the price of which is derived from the price of an underlying asset. Examples of derivatives are futures, forwards, options and swaps. Devaluation situation where a currency is devalued in a fixed exchange rate regime to a new lower value against another currency. Disintermediation the process by which financial institutions are by-passed. For example, a company sells bonds directly to the public rather than borrowing from a bank. Dividend a cash payout per share to shareholders announced by a company’s board. Dividend Discount Model a model for valuing shares. Dividend Yield the annual dividend per annum as a percentage of the share price. Dirty Price the price of a bond including the accrued interest. Discount the difference between the lower price paid for a security and its face value on issue. For example, a Treasury bill with a face value of $1000 is sold at $970 implying a discount of $30. Disintermediation the process of borrowing or lending by a company without going to a bank. For example, the issuance of a corporate bond rather than the taking out of a loan from a bank. Dobb-Frank Bill. Formally, known as the Dobb- Frank Wall Street Reform and Consumer Protection Act - a US bill name after Senators Chris Dobb and Barney Frank passed in 2009 and became law effective July 2010. The stated aim of the legislation is "To promote the financial stability of the United States by improving accountability and transparency in the financial system, to end "too big to fail", to protect the American taxpayer by ending bailouts, to protect consumers from abusive financial services practices, and for other purposes." It places restrictions on banks aimed a preventing another financial crisis. The bill imposes higher capital requirements on banks and insurance companies, new regulation on hedge funds and private equity funds. It also requires greater disclosure of public companies compensation for senior employees. It also has provisions aimed at ensuring equitable access to finance for consumers. Dow Jones Industrial Average a price weighted index of 30 major US companies. The index was originally based on 12 stocks and created by Charles Dow in 1896, the modern index of 30 companies began in 1928. Dragon Bond A dollar denominated bond issued in Asia. Duration a measure of the sensitivity of a bond’s price to changes in bond yields. Copyright BusinessEconomics.com |
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