Letter D Vocabulary Flashcards
A private financial exchange where trades of stocks and other securities are conducted without public disclosure.
Dark Pool
A purchase or sell order that will expire if not executed on the day it is entered.
Day Order
The practice of buying and selling financial instruments within the same trading day.
Day Trading
An individual or firm that buys and sells assets for their own account, often without a broker’s intervention.
Dealer
A type of debt instrument that is not secured by physical assets or collateral.
Debenture
A financial instrument representing a debt or borrowed funds.
Debt Security
A financial metric indicating the relative proportion of equity and debt a company uses to finance its assets.
Debt-to-Equity Ratio
The failure to pay interest or principal on a loan or security when due.
Default
A stock that tends to remain stable under market decline and is less affected by economic downturns.
Defensive Stock
An arrangement in which a portion of an employee’s income is paid out at a date after which that income is earned.
Deferred Compensation
A retirement plan where employee benefits are predetermined by salary history and years of service.
Defined Benefit Plan
A retirement plan where the employee and/or employer contribute regularly, but future benefits vary depending on investment performance.
Defined Contribution Plan
A financial instrument whose value is derived from the value of an underlying asset, like stocks, bonds, or commodities.
Derivative
A decrease in the value of a company’s shares caused by the issuance of additional shares.
Dilution
A non-publicly traded partnership that allows investors to directly participate in the cash flow and tax benefits of the partnership’s investments.
Direct Participation Program (DPP)
A broker that offers lower trading fees, typically providing fewer services than a full-service broker.
Discount Broker
Payments made by a business entity, such as dividends on stocks or interest on bonds.
Distributions
An investment strategy that involves spreading investments across various assets to reduce exposure to any single asset.
Diversification
A payment made by a corporation to its shareholders, usually in the form of cash or additional shares.
Dividend
A program allowing shareholders to automatically reinvest their dividends into additional shares of the company.
Dividend Reinvestment Plan (DRIP)
A financial ratio that indicates the annual dividend income investors can expect relative to the price of the stock.
Dividend Yield
The total value of shares traded over a specific period.
Dollar Volume
An investment strategy wherein an investor divides up the total amount to be invested across periodic purchases to reduce the impact of volatility.
Dollar-Cost Averaging
A stock market index representing 30 major U.S. companies and reflecting their performance.
Dow Jones Industrial Average (DJIA)
A comprehensive appraisal or investigation of a business, asset, or individual prior to signing a contract.
Due Diligence
A measure of the sensitivity of the price of a bond to a change in interest rates.
Duration
