| Term | Definition |
|---|---|
| DAGMAR | Defining Advertising Goals for Measured Advertising Results |
| Dark Cloud Cover | A bearish candlestick pattern |
| Dark Pool | A private exchange for trading securities |
| Dark Web | A part of the internet that is not indexed by search engines |
| Darvas Box Theory | A technical analysis theory used to identify trends |
| Data Analytics | The process of examining raw data to draw conclusions |
| Data Mining | The process of discovering patterns in large datasets |
| Data Smoothing | A statistical technique used to remove noise from data |
| Data Warehousing | The storage of data from multiple sources in a central repository |
| Data Universal Numbering System (DUNS) Number | A unique identifier for businesses |
| David Ricardo | A classical economist |
| David Tepper | An American hedge fund manager |
| DAX Stock Index | A German stock market index |
| Day-Count Convention | A method for calculating accrued interest on bonds |
| Day Order | An order to buy or sell a security that is only good for the current trading day |
| Day Trader | A trader who buys and sells securities within the same day |
| Days Payable Outstanding | A measure of how long it takes a company to pay its suppliers |
| Days Sales of Inventory (DSI) | A measure of how long it takes a company to sell its inventory |
| Days Sales Outstanding | A measure of how long it takes a company to collect payment from its customers |
| Days Working Capital | A measure of a company’s liquidity |
| De Minimis Tax Rule | A tax rule that allows taxpayers to deduct small amounts of expenses without having to itemize |
| Dead Cat Bounce | A temporary rise in the price of a stock after a significant decline |
| Deadweight Loss | A loss of economic efficiency |
| Dealer | A market participant who buys and sells securities for their own account |
| Dealer Market | A market where dealers buy and sell securities |
| Death Benefit | The payout from a life insurance policy |
| Death Cross | A bearish technical indicator |
| Death Taxes | Taxes on assets transferred upon death |
| Debenture | A type of debt security that is not secured by collateral |
| Debit | An accounting entry that increases asset or expense accounts and decreases liability, equity, or revenue accounts |
| Debit Balance | A negative balance in an account |
| Debit Card | A card that allows the holder to make purchases using funds from their checking account |
| Debit Note | A document used to notify a customer of a debit |
| Debt | Money that is owed |
| Debt Collector | A company that collects debts on behalf of creditors |
| Debt Consolidation | The process of combining multiple debts into a single loan |
| Debt/EBITDA Ratio | A measure of a company’s ability to repay its debt |
| Debt/Equity Swap | An exchange of debt for equity |
| Debt Financing | Raising capital by borrowing money |
| Debt Fund | A mutual fund that invests in debt securities |
| Debt Instrument | A financial instrument that represents a loan |
| Debt Issue | The offering of debt securities to investors |
| Debt Overhang | A situation where a company has so much debt that it cannot invest in new projects |
| Debt Ratio | A measure of a company’s financial leverage |
| Debt Restructuring | The process of renegotiating the terms of a debt |
| Debt Security | A financial instrument that represents a loan |
| Debt Service | The payments made on a debt |
| Debt-Service Coverage Ratio (DSCR) | A measure of a borrower’s ability to repay a loan |
| Debt-to-Capital Ratio | A measure of a company’s financial leverage |
| Debt-to-Equity Ratio (D/E) | A measure of a company’s financial leverage |
| Debt-to-GDP Ratio | A measure of a country’s debt relative to its GDP |
| Debt-to-Income Ratio (DTI) | A measure of a borrower’s ability to repay a loan |
| Debtor | A person or entity that owes money |
| Debtor in Possession (DIP) | A debtor who is allowed to continue operating their business during bankruptcy proceedings |
| Debtor-in-Possession Financing (DIP Financing) | Financing provided to a debtor in possession |
| Decentralized Applications (dApps) | Applications that run on a blockchain |
| Decile | A statistical measure that divides data into ten equal parts |
| Decision Analysis (DA) | The process of making decisions under uncertainty |
| Decision Support Systems (DSS) | Computer systems that help people make decisions |
| Decision Theory | A framework for making decisions under uncertainty |
| Decision Tree | A graphical representation of decision options and their outcomes |
| Declaration Of Trust | A legal document that creates a trust |
| Declining Balance Method | A depreciation method that accelerates depreciation |
| Decoupling | The separation of economic growth from resource use |
| Decreasing Term Insurance | A type of life insurance where the death benefit decreases over time |
| Deductible | An expense that can be subtracted from income for tax purposes |
| Deduction | The act of subtracting an expense from income for tax purposes |
| Deed | A legal document that transfers ownership of real estate |
| Deed Of Reconveyance | A legal document that transfers ownership of real estate back to the borrower |
| Deed of Release | A legal document that releases a party from an obligation |
| Deep Learning | A type of machine learning that uses artificial neural networks |
| Deep In The Money | An option that is very likely to be exercised |
| Default | Failure to meet a financial obligation |
| Default Rate | The percentage of borrowers who default on their loans |
| Default Risk | The risk that a borrower will default on a loan |
| Defeasance | The act of setting aside funds to pay off a debt |
| Defensive Interval Ratio | A measure of a company’s liquidity |
| Defensive Stock | A stock that is expected to perform well during economic downturns |
| Deferment Period | A period during which payments on a loan are postponed |
| Deferred Acquisition Costs (DAC) | Costs associated with acquiring new insurance policies |
| Deferred Annuity | An annuity that does not begin paying out until a future date |
| Deferred Compensation | Compensation that is paid at a later date |
| Deferred Income Tax | Income tax that is not due until a future period |
| Deferred Interest | Interest that is not paid until a later date |
| Deferred Profit Sharing Plan (DPSP) | A type of retirement plan |
| Deferred Revenue | Revenue that has been received but not yet earned |
| Deferred Tax Asset | A tax benefit that can be used in future periods |
| Deferred Tax Liability | A tax expense that is due in future periods |
| Deficit | A shortfall of revenue compared to expenses |
| Deficit Spending | Government spending that exceeds government revenue |
| Deficit Spending Unit | An economic unit that spends more than it earns |
| Defined-Benefit Plan | A type of pension plan that guarantees a specific payout at retirement |
| Defined-Contribution Plan | A type of retirement plan where employees contribute a set amount each pay period |
| Deflation | A decrease in the general price level |
| Degree of Combined Leverage | A measure of a company’s total leverage |
| Degree of Financial Leverage | A measure of a company’s use of debt financing |
| Degree of Operating Leverage | A measure of a company’s use of fixed costs |
| Degrees of Freedom | A statistical measure |
| Delaware Corporations | Corporations that are incorporated in Delaware |
| Delayed Draw Term Loan | A loan that can be drawn down over time |
| Deleveraging | The process of reducing debt |
| Delinquency Rate | The percentage of borrowers who are behind on their loan payments |
| Delinquent | Behind on loan payments |
| Delinquent Account Credit Card | A credit card account that is past due |
| Delisting | The removal of a security from a stock exchange |
| Deliverables | Items that are required to be delivered under a contract |
| Delivered at Frontier (DAF) | An Incoterm |
| Delivered-at-Place (DAP) | An Incoterm |
| Delivered Duty Paid (DDP) | An Incoterm |
| Delivered Duty Unpaid (DDU) | An Incoterm (obsolete, now DAP) |
| Delivered Ex Ship (DES) | An Incoterm (obsolete) |
| Delivery Versus Payment (DVP) | A settlement process for securities trades |
| Delphi Method | A forecasting technique |
| Delta | A measure of the sensitivity of an option’s price to changes in the price of the underlying asset |
| Delta Hedging | An options trading strategy |
| Delta Neutral | A portfolio that is hedged against small changes in the price of the underlying asset |
| Demand | The desire and ability to purchase a good or service |
| Demand Curve | A graph showing the relationship between the price of a good and the quantity demanded |
| Demand Deposit | A bank account that can be accessed on demand |
| Demand Draft | A check that is guaranteed by a bank |
| Demand Elasticity | A measure of how responsive demand is to changes in price |
| Demand for Labor | The desire and ability of employers to hire workers |
| Demand-Pull Inflation | Inflation caused by an increase in demand |
| Demand Schedules | Tables showing the relationship between the price |
| Term | Definition |
|---|---|
| Demand Shock | A sudden shift in demand |
| Demand Theory | A theory that explains how consumer preferences affect demand |
| Dematerialization (DEMAT) | The process of converting physical certificates into electronic form |
| Demographic Dividend | The economic benefit arising from a change in a country’s age structure |
| Demographics | The statistical characteristics of a population |
| Demonetization | The removal of a currency from circulation |
| Demutualization | The conversion of a mutual company to a stock company |
| Denomination | The face value of a security |
| Dependency Ratio | The ratio of dependents to working-age people |
| Dependent Care Benefits | Benefits provided to employees to help with the cost of caring for dependents |
| Dependent | A person who relies on another for financial support |
| Depletion | The reduction in the value of natural resources over time |
| Deposit | Money placed in a financial institution |
| Deposit at Custodian (DWAC) | A method for transferring securities electronically |
| Deposit Multiplier | The ratio of the change in deposits to the change in reserves |
| Deposit Slip | A form used to deposit money into a bank account |
| Deposition | A legal proceeding where a witness is questioned under oath |
| Depository | A financial institution that holds securities |
| Depositary Receipt | A certificate representing ownership in shares of a foreign company |
| Depository Transfer Check | A check used to transfer funds between banks |
| Depository Trust and Clearing Corporation (DTCC) | A company that provides clearing and settlement services for the financial industry |
| Depository Trust Company (DTC) | A subsidiary of the DTCC |
| Depreciated Cost | The original cost of an asset minus accumulated depreciation |
| Depreciation | The decrease in the value of an asset over time |
| Depreciation, Depletion, and Amortization (DD&A) | The process of allocating the cost of long-term assets over their useful life |
| Depreciation Recapture | The portion of a gain on the sale of an asset that is taxed as ordinary income |
| Depression | A severe and prolonged economic downturn |
| Depth of Market (DOM) | A trading tool that shows the buy and sell orders for a security |
| Deregulation | The removal of government regulations |
| Derivative | A financial instrument whose value is derived from an underlying asset |
| Derived Demand | Demand for a good or service that is used to produce another good or service |
| Descending Triangle | A bearish chart pattern |
| Descriptive Statistics | Statistics used to summarize and describe data |
| Devaluation | A decrease in the value of a currency |
| Developed Economy | A country with a high level of economic development |
| Development Economics | The study of economic development |
| Diamonds | A precious gemstone |
| Digital Currency | A currency that exists only in electronic form |
| Digital Marketing | Marketing using digital channels |
| Digital Money | Money that exists only in electronic form |
| Digital Option | An option that pays a fixed amount if the underlying asset reaches a certain price |
| Digital Wallet | An electronic device or software that stores payment information |
| Diluted Earnings per Share (Diluted EPS) | Earnings per share calculated assuming that convertible securities are converted |
| Dilution | A decrease in the ownership percentage of existing shareholders |
| Dim Sum Bond | A bond issued in Hong Kong but denominated in another currency |
| Direct Cost | A cost that can be directly attributed to the production of a good or service |
| Direct Deposit | An electronic transfer of funds directly into a bank account |
| Direct Investment | An investment in a foreign company or asset |
| Direct Market Access (DMA) | Access to trading platforms without the use of a broker |
| Direct Marketing | Marketing directly to consumers |
| Direct Method | A method for calculating cash flow from operating activities |
| Direct Participation Program (DPP) | A type of investment that allows investors to directly participate in the business |
| Direct Public Offering (DPO) | A type of public offering where a company sells securities directly to investors |
| Direct Quote | A currency quote that expresses the price of one unit of the foreign currency in terms of the domestic currency |
| Direct Stock Purchase Plan (DSPP) | A plan that allows investors to purchase shares directly from a company |
| Direct Tax | A tax that is paid directly to the government |
| Directional Movement Index (DMI) | A technical indicator used to identify the direction of a trend |
| Dirty Price | The price of a bond including accrued interest |
| Disability Insurance | Insurance that provides income replacement in case of disability |
| Disbursement | The payment of funds |
| Disclosure | The act of making information available to the public |
| Discontinued Operations | The results of operations that have been discontinued |
| Discount | A reduction in price |
| Discount Bond | A bond that is sold at a discount to its face value |
| Discount Broker | A broker that offers lower commissions than full-service brokers |
| Discount Margin (DM) | The difference between the yield on a bond and the yield on a benchmark security |
| Discount Rate | The interest rate used to discount future cash flows |
| Discount Yield | A method for calculating the yield on a discount bond |
| Discounted Cash Flow (DCF) | A valuation method that estimates the value of an asset based on its future cash flows |
| Discounted Payback Periods | A capital budgeting method that takes into account the time value of money |
| Discounting | The process of calculating the present value of future cash flows |
| Discounts For Lack Of Marketability (DLOM) | A reduction in the value of an asset due to its lack of liquidity |
| Discouraged Worker | A person who has stopped looking for work because they believe no jobs are available |
| Discrete Distribution | A probability distribution that can only take on a finite number of values |
| Discretionary Account | A brokerage account where the broker has discretion over which securities to buy and sell |
| Discretionary Expense | An expense that is not necessary |
| Discretionary Income | Income that is left after paying for necessities |
| Discretionary Investment Management | Investment management where the manager has discretion over investment decisions |
| Diseconomies of Scale | An increase in average cost as output increases |
| Disequilibrium | A state of imbalance |
| Disguised Unemployment | Unemployment that is hidden or not readily apparent |
| Disinflation | A decrease in the rate of inflation |
| Disintermediation | The removal of intermediaries from a process |
| Disinvestment | The reduction of capital investment |
| Dispersion | The extent to which data is spread out |
| Disposable Income | Income that is left after paying taxes |
| Disposition | The sale or other transfer of an asset |
| Disruptive Innovation | An innovation that creates a new market and value network |
| Disruptive Technology | A technology that disrupts an existing market |
| Dissenters’ Rights | The right of minority shareholders to receive fair value for their shares in a merger or acquisition |
| Distressed Sales | Sales of assets by a company in financial difficulty |
| Distressed Securities | Securities of companies in financial difficulty |
| Distributable Net Income (DNI) | The taxable income of a trust or estate |
| Distributed Ledger Technology | A technology that allows data to be stored and shared across a network of computers |
| Distributed Ledgers | Databases that are replicated across multiple computers |
| Distribution | The process of getting goods to consumers |
| Distribution Channel | The path through which goods travel from producer to consumer |
| Distribution In Kind | A distribution of assets other than cash |
| Term | Definition |
|---|---|
| Distribution Management | The process of overseeing the movement of goods from producer to consumer. |
| Distribution Network | The system of organizations and facilities involved in distributing goods. |
| Distribution Waterfall | The order in which payments are made to different parties in a structured finance transaction. |
| Distribution Yield | The annual dividend income of a REIT divided by its share price. |
| Divergence | A situation where the price of an asset and a technical indicator move in opposite directions. |
| Diversification | The process of spreading investments among different asset classes. |
| Diversified Company | A company that operates in a variety of unrelated industries. |
| Divestiture | The sale of a business unit or asset. |
| Divestment | The act of selling off assets for ethical or financial reasons. |
| Dividend | A payment made to shareholders from a company’s earnings. |
| Dividend Aristocrat | A company with a long history of increasing dividends. |
| Dividend Discount Model (DDM) | A valuation model that estimates the value of a stock based on its future dividends. |
| Dividend Growth Rate | The rate at which a company’s dividends are expected to grow. |
| Dividend Irrelevance Theory | A theory that states that a company’s dividend policy does not affect its stock price. |
| Dividend Payout Ratio | The percentage of earnings paid out as dividends. |
| Dividend Per Share (DPS) | The amount of dividends paid out per share. |
| Dividend Policy | A company’s strategy regarding dividend payments. |
| Dividend Rate | The annual dividend payment per share. |
| Dividend Recapitalization | A transaction where a company takes on debt to pay a large dividend. |
| Dividends Received Deduction (DRD) | A tax deduction for dividends received from other corporations. |
| Dividend Reinvestment Plan (DRIP) | A plan that allows shareholders to reinvest their dividends. |
| Dividend Yield | The annual dividend per share divided by the stock price. |
| Documentary Collection | A method of payment for international trade transactions. |
| Dodd-Frank Wall Street Reform and Consumer Protection Act | A U.S. law that regulates the financial industry. |
| Dogs of the Dow | An investment strategy that involves investing in the ten highest-yielding Dow Jones Industrial Average stocks. |
| Doji | A candlestick pattern that indicates indecision. |
| Dollar-Cost Averaging (DCA) | An investment strategy that involves investing a fixed amount of money at regular intervals. |
| Dollar Duration | A measure of the sensitivity of a bond’s price to changes in interest rates. |
| Dollarization | The adoption of a foreign currency as a country’s official currency. |
| Domestic Corporation | A corporation that is incorporated in the United States. |
| Domestic Relations Order (DRO) | A court order that divides marital property in a divorce. |
| Domicile | The country where a company is incorporated. |
| Donchian Channels | A technical indicator used to identify trends. |
| Dormant Account | A bank account that has been inactive for a period of time. |
| Dotcom | A company that operates primarily online. |
| Dotcom Bubble | A speculative bubble in internet stocks in the late 1990s. |
| Double Bottom | A bullish chart pattern. |
| Double Declining Balance Depreciation Method (DDB) | An accelerated depreciation method. |
| Double Entry | An accounting system where every transaction affects at least two accounts. |
| Double Exponential Moving Average (DEMA) | A technical indicator used to smooth price data. |
| Double Irish With A Dutch Sandwich | A tax avoidance strategy used by multinational corporations. |
| Double-Spending | The risk that a digital currency can be spent more than once. |
| Double Taxation | The taxation of corporate profits at both the corporate and shareholder levels. |
| Double Top | A bearish chart pattern. |
| Dove | A central banker who favors low interest rates. |
| Dow 30 | The 30 largest U.S. companies in the Dow Jones Industrial Average. |
| Dow Jones CDX | An index of credit default swaps. |
| Dow Jones Industrial Average (DJIA) | A stock market index that tracks the performance of 30 large U.S. companies. |
| Dow Theory | A technical analysis theory. |
| Down Payment | A portion of the purchase price paid upfront. |
| Down Round | A financing round where a company raises capital at a lower valuation than its previous round. |
| Downside Risk | The potential for loss. |
| Downstream | The processing and distribution stages of a supply chain. |
| Downtrend | A period of declining prices. |
| Drag-Along Rights | A clause that allows majority shareholders to force minority shareholders to sell their shares. |
| Dragonfly Doji Candlestick | A candlestick pattern. |
| Drawdown | A decline in the value of an investment. |
| Drawee | The bank on which a check is drawn. |
| Drawing Account | An account used by a business owner to withdraw funds. |
| Dry Powder | Cash or other liquid assets that are available for investment. |
| Dual Class Stock | A company with two classes of common stock, with different voting rights. |
| Dual Income, No Kids (DINK) | A couple with two incomes and no children. |
| Dual Listing | A company whose stock is listed on two or more stock exchanges. |
| Due from Account | An account receivable. |
| Due to Account | An account payable. |
| Due Diligence | The process of investigating a potential investment. |
| Dumping | Selling goods in a foreign market at a price below fair market value. |
| Dun & Bradstreet (D&B) | A company that provides business credit information. |
| Duopoly | A market with only two sellers. |
| DuPont Analysis | A framework for analyzing a company’s profitability. |
| Durable Goods Orders | A report on new orders for durable goods. |
| Duration | A measure of the sensitivity of a bond’s price to changes in interest rates. |
| Durbin Watson Statistic | A test for autocorrelation in regression analysis. |
| Dutch Auction | A type of auction where the price is lowered until a buyer is found. |
| Dutch Disease | The negative impact of a natural resource boom on other sectors of the economy. |
| Dutch Tulip Bulb Market Bubble | A speculative bubble in tulip bulbs in the 17th century. |
| Dynasty Trust | A trust that can last for multiple generations. |