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Money Isn't Everything - We each have our own priorities and there should always be things that are much more important than money like health, happiness, and family, but even...

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Investing Glossary - D

    Daily List

    Daily List - The daily list is a provision of the Initial Corporation's data action, including the new listings and the reduction of old or stagnant listings. It is the symbol and the change of name and amount of dividends for the NASDAQ Stock Market and the Mutual Fund Quotation Service or MFQS. It is the active trading and market changes within the financial community. This provided notification in advance of new listings and provided notification of advance cash dividend changes. It will summarize the stock securities with adjustments applied to stock dividends. It offers corporate historical action information dating...

    Dark Trading

    Dark Trading - The buying and selling of stocks out of public viewing set up by investment banks as dark trading. This practice of buying and selling stocks gives the investor a chance to exchange stock certificates at higher volume without significantly causing risk or changes to the stock market. It is a way for investors to track the movement of any particular stock at any time to observe the progress of the movement within the stock market trading cycle. The broker owned and stock market movement venues will continue on the current trend they are on for the duration...

    Date of Issue

    Date of Issue - The date stated when the newly issued bonds begin to accumulate interest on the bond is date of issue. The purchaser or holder of the bond in the stock market is obligated to issue payment to the issuer with interest included between the dated date originally filed, and the settlement date in addition to the principal amount of the purchase of the bond. The accumulative interest returned to the buyer when the holder at issue makes the first initial interest payment. For example, a new bond issued with a date for July 1 has a return...

    Date of Payment

    Date of Payment - a date of payment is a term for the date a payment on a dividend on a stock, a distribution of a mutual fund, or a bond interest payment is made or is scheduled to be made. It?s also known as the distribution date or simply the payment date only the investors that bought the securities previous to the last dividend date will receive the dividend on the date of payment. Dividends will vary in amounts depending on market conditions and the performance of the company itself, but the payment date remains the same, no matter...

    Date of Record

    Date of Record - The specified date referred to as the ex-dividend date is date of record. It is when shareholders of record are entitled to the initial dividend payment. The stock usually begins by trading ex-dividends or ex-rights on the fourth consecutive business day of operation before payment date is due. It is when only shareholders of record of mentioned shares will receive a dividend on a given stock certificate. When a stock purchased the individual owner of the stock certificate would not receive any dividend payment until a specified time. It is a date set in fact, by...

    Day's Range

    Definition: The day's range is simply the range in which the company's stock traded.  For example, a day's range that reads "48.50-51.25" means that the lowest price the stock reached that day was $48.50/share and the highest price was $51.25. TeenAnalyst Advice: The day's range doesn't really tell you all that much about the stock.  But if you notice that the day's range of a stock often has a large spread, it means the stock is more volatile.  ...

    Daytrading

    Definition: Daytraders use momentum to rapidly buy and sell stocks.  They look to make a quick profit on the intraday movements and expect to be completely unexposed (meaning they've sold all their shares) by the end of the day. Advice: Daytrading ...

    Dollar Cost Averaging

    Definition: Dollar cost averaging occurs when you buy shares of stock at multiple prices over time.  This is what happens when you decide to invest periodically. Advice: Dollar cost averaging is great because it removes timing risk.  You don't have to worry about getting in a stock at "the right time."  Consider this example:Option A: Invest $1,000 at $50 per share.Option B: Invest $250 per month for four monthsOption B:Month 1: $50 per share (5 shares)Month 2: $45 per share (5.56 shares)Month 3: $40 per share (6.25 shares)Month 4: $55 per share (4.55 shares).  ...

    Deal Stock

    Deal Stock - The deal stock is the certificate of a company or corporation considered a bargain, a deal under certain circumstances. The outstanding stock shares become deal stock when events affecting the value of a stock begin to transmit. The rumors may have a negative effect or a positive effect depending upon the perception of the stock certificate on the trading market. Rumors that transition a stock involve words of a takeover or a merger within the corporate community. If the merger or takeover will benefit the company in question, shareholders are tempted to buy more stock certificates as...

    Death Play

    Death Play - The purchase of stock certificates and then suddenly sold short with the expectation of the initial company or corporation's Chief Executive Officer (CEO) to die in a relatively short period of time is death play. For example, if a CEO recently diagnosed with a life-threatening disease and this information leaked out to the public domain, it will be devastating to the company or corporation at hand. Investing shareholders will gather up their stock certificates listed within their individual portfolio and begin the arduous task of selling the stock quickly. It is a strategy that buys stock certificates...

    Debenture Stock

    Debenture Stock - An investment that is similar to preferred stock. The conditions and terms of debenture stock is the stock must comply under include a schedule for making payments to the investor or shareholder at regular quarterly intervals of a yearly cycle. The shareholder realizes the stock certificate treated as equity instead of an actual debt. This classification also establishes a degree of protection for the shareholders if the company closes its doors to begin the venture of liquidation. The investor receives one last scheduled payment after closing. The fixed payments relating to stock help ensure the investor will...

    Debt-Equity Ratio

    Definition: This is the ratio of the company's liabilities to its equity (total value of all the stock). TeenAnalyst Advice: The debt-equity ratio is an important number to consider. A company with a high debt-equity ratio is one that has a considerable amount of debt. Debt in itself isn't bad.  However, debt requires that the...

    Debt Equity Ratio

    Debt Equity Ratio - How much a company leveraged, or in debt, by comparing what owed to what is owned is debt equity ratio. A high debt is indicative of a company over-leveraged. Controlling business spending is one way to reduce debt. Another option is selling off unwanted material to another bidder. Corporate credit buying is another issue in need of corporate attention. The ratio business equity to long-term debt provides a window of opportunity identifying the cause and effect of industry finances. The equity will include goods and property the business owns. Additional claims against the corporation are self...

    Debt Equity Swap

    Debt Equity Swap - An exchange for a specified amount of equity, or stock certificate is a debt equity swap. The monetary value determined is by the current market rates, but management has the option to offer a higher exchange. This is for the purpose of enticing the shareholders to participate in the venture. When the swap has taken place, the original asset class, classified as defunct. The corporation is then obligated to honor the certain contractual obligations. The corporation will issue equity to avoid making coupon and face value payments in the future. A lending institution or bank authorizes...

    Debt Fund

    Debt Fund - a debt fund is a pool fund held by several investors in which the core holdings are fixed income investments The Debt fund (pooled group of investors) may invest in long term or even short term bonds, floating race debt, money market funds, or securitized products... The main objective of a debt fund is the preservation of capital and to generate income... The fees ratio for debt funds are usually smaller then equity funds (on average), because the overall management costs are lower. Performance on a benchmark is considered to be secondary when investing in a debt...

    Decline Rank

    Decline Rank - a decile rank is a rating usually on performance, the scale is from 1 to ten. 1, representing the best performance, and continuing in order, reaching the number 10, representing the worst performance... Each number represents 10 percentage points. An example would be rating a mutual fund performance. If a mutual fund is given s 2 rating, this would indicate that the fund is in the top 20 percent in performance. If the mutual fund is given a 7, it is in the top 70 percent in regards to performance. Obviously the rating of 2, would be...

    Dedicated Capital

    Dedicated Capital - The least amount that a share of stock certificates sell, found in the regulations of the company issuing the stock certificates. The dedicated capital, know as par value will also be the initial price a stock is traded when introduced to the corporate world. The expectation is in the par value for the stock by a higher market price. The establishment of the stock certificate offering is essential to the structure of any stock. The minimum amount or price traded is the active selling price of the stock. This helps to protect a corporation from attempts to...

    Defensive Stock

    Defensive Stock - The art of fiscally minimizing your risk during volatile times, especially a bear market, is the use of investment instruments to remain stable. When the stock market loses confidence, the stock pr ices plummet. Considering an individual's age will determine the risk one is willing to take. When a crisis occurrence rears the approach of attention turned toward a cyclical stock purchase or the defensive stock purchase as known. A stock that is not dependent on expansion or times of an economic affluence is preferable. The portfolio is sustainable through the downturns of the volatile stock market...

    Deferred Billing

    Deferred Billing - The term deferred billing is one where a company allows customers to make purchase, but pay for them at a later day. Normally this is a courtesy that might be extended to a client who does a lot of business. And it allows them to place and order without paying for it in advance. Such offers may include the chance for delay in the payment without a penalty of interest during the period by sending an invoice to the client. However, nothing in this process provides any guarantees that the client will actually pay the bill later....

    Deferred Call

    Deferred Call - This is a provision prohibiting the company from calling the bond before a given date. During this period of time the bond protected. It is an option that allows the right to purchase a futures contract or to exercise the call option. It is a bond an issuer can retire at will or a deferred call option. The investor or the shareholder has the right to make issue the call price. This prohibits the corporation from calling the bond before a specified date. This is a provision prohibiting the corporation or the company from calling the bond...

    Deferred Share

    Deferred Share - An issuance of stock certificate sometimes issued to key individuals within the structure of the corporation. Executives and or directors of a corporation are eligible to receive deferred shares of stock as part of a deferrable issue. The holder in this case, holds the shares not redeemable until they officially are in the employ of the corporation. This strategy involves the share issue of stock certificates locked from active trading on the stock market. Stocks issued through a corporation honored in the event of a liquidation or bankruptcy of the corporation. Note all obligations must meet standards...

    Deflation

    Definition: The opposite of inflation, deflation is when the price of goods begins to fall.  This sounds like a good situation (because things are cheaper) but it's really not! TeenAnalyst Advice: Most people think of the Great Depression when they think about deflation.  Minor deflation isn't terrible but prolonged deflation means that the value of real estate decreases.  People will begin to feel "less wealthy" because of this and spend less money.  Without consumer spending, the economy can spiral into another depression.   ...

    De Jure Corporations

    De Jure Corporation – A de jure corporation is a firm that is operating in compliance with all requirements set forth by the state where they exists. This will include having a charter that is fully legal and in compliance with all requirements that are mandated by a state’s laws. In contrast with any corporation that actually complies with all designated conditions and regulations are the ones referred to as “de facto.” Such will are so named and titled for their failure to adhere to the abiding conditions that are mandated on a business by a given state that are...

    Delayed Opening

    Delayed Opening - Short-lived periods of time in the delay of the opening bell referred to the delayed opening. This may last for a few minutes or continue for several hours. Generally, there are extenuating circumstances making it prudent to delay the start of the trading day. The situations vary, but it does occur. There are three known reasons for this delay. The first, delaying the opening of the exchange to trading due to disparity in the day or hours before. The second, the disparity between supply and demand, and the third is determining all the factors and assess the...

    Deliverable Instrument

    Deliverable Instrument - The asset delivery in a forward contract, agreed upon by two or more parties referencing the sale and purchase of a specific commodity. The similarity to futures not easily transferred or cancelled. A deliverable instrument is an agreed upon future price and through a forward contract is delivered at a future determined date of choice. It is a contract specifying the quantity of assets and the agreed price. It is the transfer of a security or certificate to a broker of choice satisfying the initial sell request. The receipt of the actual commodity or financial instrument contracting...

    Delivery Notices

    Delivery Notice - A delivery notice is a communication in some formal manner than informs a buyer of a date for a delivery. Or it may be to inform of a delivery that has actually taken place with details regarding the delivery. This term also is used with the stock market. Such can take place when futures are traded. Then a form notification is provided by the seller with regards to a given date when he or he intends to delivery some contracted future to the buyer. In such case the notice is for the transfer of title instead of...

    Delivery Option

    Delivery Option - A feature added to future contracts predetermining the short position of timing, quantity, location and quality of any commodity reflected in the delivery notice. A delivery option provided a huge amount of flexibility for the individual making the delivery of underlying commodities, but it poses a risky venture for the expecting investors. The option of the seller in an interest rate futures contract to take when negotiating the settlement of an obligation. It is a wild card option for the sake of the contract. In such contracts, the buyer...

    Delivery vs. Payment

    Delivery vs. Payment - Otherwise known as the DVP, it is a swift message type issued to reduce the settlement risk in any financial transaction sought. It is the delivery vs. payment system giving title to assets and payments in exchange at a specified simultaneous time and date. This made possible by the many cases such as a central depository system like the Depository Trust Corporation. It is the delivery of all securities in exchange of an asset or assets. A securities industry inclusive to strict procedures and governing rules for the future buyer. The buyer supplies the payment for...

    Delivery vs. Receipt

    Delivery vs. Receipt - The deliverance of securities in the exchange for an authorized signed receipt for the securities. There are two methods used for the delivery of securities. The authorized signed receipt is the first and the one used most often. The second method is the delivery vs. receipt, which is the delivery made and the buyer signing a declaration of receipt. In the case of securities, this is for the receipt taken of the securities and the receipt is the acknowledgement. In future deliveries the securities received noted at the...

    Delivery vs. Repayment

    Delivery vs. Repayment - This is the specific delivery of securities for the ultimate possession of the asset retained in numeration. This is a delivery vs. payment method. Otherwise known as the DVP, it is a swift message type issued to reduce the settlement risk in any financial transaction sought. It is the delivery vs. payment system giving title to assets and payments in exchange at a specified simultaneous time and date. This made possible by the many cases such as a central depository system like the Depository Trust Corporation. It is...

    Delta Cross Hedge

    Delta Cross Hedge - This involves the futures trading. It is an offset position in the contract of futures for an existing position towards a related commodity in the cash market. The delta cross hedge is similar to the cross hedge in that it involves the taking of a position on a specific commodity with equal price movements. The price movement of the commodity is related. There is a negative movement on a commodity, offset by positive viability. Cross hedging, similar to delta cross hedging and is used in the...

    Demand Rights

    Demand Rights - It is a legal binding contract entitling a shareholder or shareholders involved in a corporation to place requests in a timely manner. The enforcing or demand of rights to hold a corporation legally responsible for registering of stock shares for sale at a later date. This is a binding agreement between the corporation the stock are issued and the individual in the process of buying the stock certificates. It is with the intent of placing the stock certificates for sale at a later specified date. The corporation is obligated...

    Denomination

    Denomination - a denomination is the face amount of any currency or any security or bond... Face amount means the amount stated on the policy... The term, denomination, applies to mist financial instruments, banks, investment brokers, mutual funds, stock or bonds... It merely means anything of value, or face value when it comes to insurance policies. The denomination for bonds and securities would be face value, whereas the denomination for currency would be the printed amount. An example of currency denomination would be $25 dollars, in the denomination of 5 singles, one 10, and two, $5 dollar bills...

    Depositary Receipt

    Depositary Receipt - This represents the ownership of shares of stock certificates and trades in the financial stock markets. It is the buy and sell of the stocks involved with non-United States companies on the United States Stock Exchange. The depositary receipt carries the prices in United States currency and pays dividends in United States dollars. This can and does represent a fraction of stock certificate shares, or shares of the foreign stock transferred on a daily basis through the stock markets. The stock shares of foreign investors are treated the...

    Depository Trust Company

    Depository Trust Company - This is a group of companies, which have aided in the automation for centralized, standardized, and streamlining the critical process to safety and peace of mind in the capital markets. The Depository Trust Company has been in business since its establishment in 1973. The purpose is to reduce the cost and provide a centralized place for clearing and settlement by immobilizing securities. It is for the purpose of institutional trade and money market instrumentation. This establishment brings efficiency to the security industry by retaining custody of securities. They are involved in reorganization and proxy services, underwriting...

    Depreciation

    Definition: Long-term assets are depreciated to account for the reduction in economic value over time.  For example, if you bought a car for $20,000 and intended to keep it for 5 years, it wouldn't make much sense to have it valued at ...

    Digested Security

    Digested Security - a digested security is a security that investors would most likely hang on too for a long period of time A security could be any of the following: a stock , bond, treasury stock, debenture, certificate of interest, amongst of securities.. A digest security is the opposite of a stock that?s traded, and followed on a daily basis. Some investors chose to turn over securities in very short times, with the hopes of making a fast profit, and minimizing risk, But at times investors find as security which they choose to hang on to for a long...

    Direct Cost

    Direct Cost – A direct cost is the one that is related to the actual manufacturer of a product or services. This is the amount before any one that sells the item adds on their cost to create the retail price the customer has to pay. And often the price one ends up seeing at a store can be attributed to some increased in the charge by the manufacturer of a given item. Though there are other reasons for prices by retailer to increase, this is one that definitely is a major factor. And naturally anyone who is resells such...

    Direct Marketing

    Direct Marketing ?- This is a form or marketing done to possible customers where an advertisers use a direct type of sales approach. It can be done in any one of many different ways. Such can include things as by mail or phone calls. In order to have any success with this method the ones using it have to keep some form of accurate data files with lists of possible customers. They use various means to accumulate such information. And have to regularly update such details in order to preserve its credibility. Often this data is shared between various firms...

    Dirty Stock

    Dirty Stock - When a stock is sold, the title must be transferred to the buyer. This transfer takes place on the specified delivery date. In order for this transfer to happen in the proper manner, the certificate must have endorsements that are stipulated in the certificate, and meet all the requirements laid out in the transfer. In the event that all the necessary requirements are not met with in the specified time period or the endorsements required are not obtained, for whatever reason, the stock is then referred to as dirty stock....

    Discounted Basis

    Discounted Basis - When any financial security, whether it is a stock, bond or money market, is to be sold one consideration is that it has an established value. Sometimes in order to sell one of these securities, it is necessary to reduce the selling price to reflect the cost of the transaction and take into consideration the value the security would have on its pre-determined maturity date. If the interest or carrying cost is to be covered, then the selling price is lowered or ?discounted? proportionately to allow for these costs, thus, the interest or carrying costs added the...

    Discounted Future Benefits

    Discounted Future Benefits - Discounted future benefits are methods used in order to calculate what is determined as the net present valued for things such as cash flows. This also applies to items like income or benefits of a societal nature. Such things would relate to when these amounts are due from any possible environmental project involved with improvements or investments. And such are opposite those relating to things such as compound interest. Thus they apply to the notion of what is called time value of money. This is based upon what is considered the current worth of a dollar...

    Discounting the News

    Discounting the News - When a Company has stock it is common for the company to use a process to utilize their financial data and analyze their information, and can often make reliable forecasts of how the it will perform within the near future. This forecasted information in sometimes made available to potential investors and stockholders. Sometimes it gets into the media and is broadcast over the news. When a buyer gambles on a the price of a particular stock going either up or down based on the information available on the media or to the general public, they are...

    Discount Rate

    Definition: In order to determine the value of future cash flows, they need to be "discounted" back to the present to account for the time value of money, inflation, and other risks.  The discount rate is used to do this. Advice: A ...

    Distressed Securities

    Definition: A distressed security is one of a company that is currently in bankruptcy or near it.  It can refer to common stock, preferred stock, or corporate debt.Distressed security investors are often big hedge funds that one to affect change at the company.  They'll buy up lots of debt and equity cheaply, try to gain seats on the board, and then kick the management out and/or sell the company off. Advice: For the common investor without much capital, distressed investing is a very risky strategy.  When a company goes bankrupt, its equity becomes worthless.  It's a strategy that's better reserved for...

    Distress Sale

    Distress Sale – A distress sale is one where assets are being sold due to some unexpected emergency. It is where funds are needed and the something happen beyond the ability of an owner to handle without having to sell off some assets. These are sales where there is no concern over making a profit. In stocks this might involve where there is what is called a “margin call.” That is where there is a margin call for payment because the value of shares is less than what person owes on them because of a loan with a margin between...

    Distribution Area

    Distribution Area - When the stock of a given company has been trading for and extended period of time a trend can sometimes be seen in the actual price that could be analyzed into a general range. If the analysis indicates that the price is likely to go higher than the range which has been typical, then this range, referred to as the distribution area, can be used to time the sale of stock so that the price is a t or above the higher end of this range. Various models have been created to try to forecast these peaks....

    Distribution Date

    Distribution Date - a distribution date is a term for the date a payment on a dividend on a stock, a distribution of a mutual fund, or a bond interest payment is made or is scheduled to be made. It?s also known the payment date, or date of payment (distribution date) Only the investors that bought the securities previous to the last dividend date will receive the dividend on the distribution date Dividends will vary in amounts depending on market conditions and the performance of the company itself, but the payment date remains the same, no matter what the payment...

    Distribution Line

    Distribution Line - When trading volumes of a specific stock are monitored and analyzed, on of the technical indicators is the distribution line. If the volume of sales is increasing, and were charted on a wall graph, then the line indicating this would be rising. The opposite is true if the volume were decreasing. This indicator is used along with the theory that an increase in trading of a given stock would foretell and increase in the price of the same stock. That would help decide whether or not it was a good time to buy....

    Distribution Network

    Distribution Network - A distribution network involves an organized means for the delivering of goods or services from a given manufacturer to the designated delivery locations. This could involve any number of agents or means necessary for the facilitation of making sure a specific shipment reaches the place it was intended. Normally there are many options and services that a manufacturer can use for such situations. Unless they are large enough and have sufficient sales to warrant creating their own customized means. That will depend on the manufacturer and what all they feel is the best method to accomplish deliveries....

    Distribution Plan

    Distribution Plan - a distribution plan is a plan executed by mutual fund companies. The purpose of the plan is too collect and assesses fees to shareholders of the funds, to offset expenses. The expenses could be for advertising costs or sales incentives (rewards for good behavior). The distribution plan will specify a certain percentage, usually less then .75 percent (sometimes less). This fee is deducted on an annual basis, from the assets of the shareholders securities. A distribution plan is only in place for mutual funds, which are managed funs, so fees have to be collected to pay for...

    Distribution Stock

    Distribution Stock - When sock is sold there are several approaches that can be used, If the stock is sold all at once on the market, some analysts might interpret that as an indication that there is something wrong and as a result the value of the stock could be adversely affected. One way to avoid this problem is to spread the sale of the stock over a longer period of time. This method is often called distribution stock because the process of the sales takes place or is distributed over a longer time with multiple transactions instead of a...

    Diversification

    Definition: The concept of spreading your money among a number of different investments in order to reduce risk.  It's the idea that you shouldn't put all of your eggs in one basket. TeenAnalyst Advice: Diversification is a good way to reduce your risk and exposure to the market.  Every good portfolio should be diversified.  ...

    Diversified Investment Company

    Diversified Investment Company - This is a general term used to describe a company that buys securities from a wide range of companies, in a wide range of area and the securities are of a ?diverse? type. This means that the chance of a failure within a certain type of security would not have a marked affect on the overall portfolio because the diversity of the other securities would buffer the rise or fall of the value any one. There are specific guidelines that allow only minimal investment in any one company, thereby ...

    Dividend

    Definition: A dividend is a share of a company's profits that it pays to investors.  Not all companies pay dividends; a number of companies decide to retain their earnings and reinvest them into the company. TeenAnalyst Advice: Many people believe that the majority of investment profits are made from dividends.  That's not true.  The majority are...

    Dividend Payout

    Dividend Payout - When a company has done well in the current financial year it is said to have made a profit. People who bought shares in this company are investors. The company has the option to reinvest some of the profit in the form of retained earnings, and then, it is able to ?share? the good fortune with its investors. The amount given out to the shareholders is referred to as ?dividends?. Each share is given a specific dollar amount that it will be allotted, thus, the more shares you own, the more money you would receive as...

    Dividend Per Share

    Dividend Per Share - This is the amount of money that that any one person owning stock in a mutual fund, investment trust or company would be paid as a result of that entity doing well either financially or in the market. The actual dollar value is determine by calculation and is relative to the total number of shares that have been issued and are owned by the public. For example, if the company is paying dividends of 5 million dollars and there are 1 million shares outstanding, then the dividend per share is 5 dollars....

    Dividend Policy

    Dividend policy - a dividend policy is the company's stance on how it will dispense its earnings.. It will include in its description the amount paid to shareholders ( if any) or if the company will retain the profits.. It will also outline when the dividends will be paid out , how much, and how frequent.. The profit, which is any positive gain, from any investment, or business venture, will be either dispersed to investors or shareholders, or it may be re-invested back into the company. The Dividend policy will explain exactly if the profit earnings will go the shareholders...

    Dividend Reinvestment Plan

    Dividend Reinvestment Plan - a dividend reinvestment plan is offered by some corporations as a way to reinvest capital gains, and cash dividends without paying fees to a broker or a brokerage firm. By reinvesting the dividends, or capital gains, you can purchase more shares of the business without paying any fees or commissions to brokers... The first share has to be purchased through a broker, but with a DRIP ( dividend) reinvestment plan) all future profits may be reinvested automatically with out paying broker fees to purchase shares on your behalf. Some DRIP plans even allow you to make...

    Dividend Yield

    Definition: The dividend yield is the rate of return an investor would receive solely from dividends.  It's calculated as follows: Dividend yield = (Annual dividend)/(Current stock price) Advice: The dividend yield is an interesting figure to keep an eye on because ...

    Division of Corporate Finance

    Division of Corporate Finance - The Division of Corporate Finance is a separate department within the Security Exchange Commission, also known as the SEC. The purpose of the Division of Corporate Finance is make sure Investors have the proper documents and information before making informed decisions on purchasing , selling or trading stocks. The Divison of Corporate Finance also monitors provisions that companies may include, such as death benefits rate improvement, or certain release clauses. They also monitor materials that are on going and also any new changes to the companies information regarding trading , purchasing or selling their stock....

    Donated Stock

    Donated Stock - donated stock is stock that is given back to the company by an investor. No money is exchanged but there are several other reasons to donate stock back to the company, instead of receiving dividends. One reason would be to reeve a service by the company. Another would be to receive good, or products in exchange for shares. Sometime donated stock is used for civil reasons. Donated stock can be used for charitable reasons .such as youth programs museums, art, renovations, and city improvements. And other public venues. This on behalf and sponsored by the company and...

    Do Not Increase (DNI)

    Do not increase (DNI) - do not increase (DNI) is a set of instructions from a company, to either a broker or a brokerage firm. Do not increase, or in short DNI, simply is instructions for brokers not so increase the amount of shares bought or sold for a specific fund. This could be for a variety of reasons. One reason is the company might be considering splitting stocks, Another reason could be the company is about to pay out dividends, Whatever the reason, Do Not Increase ( DNI) is a specific instruction to the above stated., and is used...

    Don't fight The Tape

    Don't fight The Tape - don't fight the tape is an expression and advice to an investor. It is suggesting (and giving advice) not to go against a trend. The tape is the stock market ticker tape and watching the trend is advisable. So the term don't fight the tape is implying not to do anything risky, to stay the course, and to watch and see example. It's not advisable (or don't fight the tape) to sell a stock if it has a trend of rising for a long period of time. It merely is indicating not to make any...

    Dot-Com

    Dot-Com - This is a term that is related to any business that does most of its activity on the internet. And the maintain a web site domain where the address in with a “dot” and then com. It is very common these days for any company to create a web site to advertise their products. In this case the company’s primary source of revenue comes from sales made from the web site. They will offer their clients the means to make purchases on line and in a way that is easy and very convenient. This allows them to reach...

    Double Taxation

    Definition: This is the concept that if you have a corporation, you might have to pay taxes twice.  The corporation first has to pay a corporate tax, and then you would have to pay an income tax on what you pay yourself. TeenAnalyst Advice: This is one of the downsides to having a corporation as opposed...

    Dow Jones Industrial Average (DJIA)

    Definition: An index of thirty reputable companies.  These are all blue chip stocks in a number of industries.  Commonly called "the Dow." TeenAnalyst Advice: The Dow Jones Industrial Average is just one of many different stock indexes.  It gives you a quick way of determining how the stock market has been doing.  But remember...it only represents 30 stocks!  ...

    Dow Jones & Company

    Dow Jones & Company - The Dow Jones & Company is a United States of America Publishing firm, founded by three American Business men. Charles Bergstresser, Charles Dow, and Edward Jones, founded the publishing company in 1882. The company published financial and business information. It was sold just a few years later, to the Bancroft family. This family had total control of the company for over 100 years. In recent years the firm has been operated by the News Corporation. However as a subsidiary company. The Dow Jones & Company still is controlled by a holding company who is the...

    Drag-Along Right

    Drag-along Right - The Drag-along right is a legal term to protect major shareholders. The drag -a long right assures major share holders that they will be given more power over minority share holders forcing them to go along with financial decisions. For instance if the major shareholders want to sell apportion of stock, they have drag-along rights over the minority share holders, forcing them to go along with the concept. Drag-along right is very common in corporate law, and is practice more times then not. Drag -along rights usually end when the company offers common stock to the public...

    Drawn Securities

    Drawn Securities - Drawn Securities are forms of capital that an investor redeems for profit. It merely is receiving payment for selling shares of stock. Drawn Securities can be derived from different sources of the financial world. Drawn Securities can be obtained from bonds, or loans paid back. They also can come from redeeming funds from common stock, or mutual funds prior to maturity. A security (in forms of stock, loans, notes or government or private corporations) that is withdrawn and sold back to the investor is a Drawn...

    Dressing Up A Profile

    Dressing Up A Profile - dressing up a profile is a term for making a mutual fund more attractive, using deception... This deceptive practice is crafted in which mutual fund company will sell stocks that are performing poorly, and purchase stocks that are performing well... This gives the impression that the mutual fund company has been holding good stocks the whole time. This practice of buying good perfuming stocks and selling poor performing stocks usually occurs just before the funds holdings are made public. Thus the deception? Dressing up a profile is not a common practice but it is done...

    Dividend Reinvestment Plan (DRIP)

    Definition: A dividend reinvestment plan (DRIP) allows investors to use their dividends to buy more shares of stock.Advice: By reinvesting dividends, investors can enhance their long-term value creation.  Over time, these dividends will add up considerably through compounding.    ...

    Drop Shipping

    Drop Shipping? - Drop shipping is where the supplier of merchandise sends any purchases directly to retail clients. They will maintain the storage and all other warehouse functions so the retailer doesn’t have to keep the items in his or her store. Plus with this type of program the retailer is not require to pay for the items until they are actually purchased. Such a process allows for the minimum risk on the part of the retailer who doesn’t have to worry about keeping a large inventory in his or her store. This has many advantages for the retailer....

    Deferred Tax Asset

    Definition: A deferred tax asset is created by overpaying taxes during a given time period.  This usually occurs as a result of timing differences based on how the company depreciates its assets.  This deferred tax asset reduces the company's tax liability in the future.Advice: Deferred tax assets are good because they reduce the liability in the future.  Because this has value, they're recorded as an asset.Investors should give these a little consideration when analyzing a company's financials because high deferred tax assets and liabilities may signal that the company is too aggressive in its accrual accounting.  ...

    Deferred Tax Liability

    Definition: A deferred tax liability occurs when a company underpays its taxes due to a difference between how it accounts for an asset on its books versus how it accounts for it on a tax basis.Advice: Deferred tax liabilities aren't very good because they increase the liability in the future.  Because this has value, they're recorded as an liabilities.Investors should give these a little consideration when analyzing a company's financials because high deferred tax assets and liabilities may signal that the company is too aggressive in its accrual accounting.  ...

    Dual-Class Ownership

    Dual-class Ownership - a dual-class ownership is where investors share equity with company officers who primarily have more authority then the investors. This usually occurs when a company, which is private, starts to trade on the public market. The original founders, president, CEO, or managers, still want to remain in an authoritative role and still be allowed to sell larger amounts of stock. They still want to maintain their high voting rights A management team is in place and under the dual-class ownership label, they will have more power and voting rights then the investors, allowing them to retain more...

    Dual Listing

    Dual Listing - a dual listing is when a security is traded on more then one exchange. Securities have to be registered, and usually are sold on one exchange however in some cases a Dual Listing I used. A dual listed stock is not convertible into each other, like a cross listed stock. It's the same stock that happens to be sold and traded on different exchanges such as the New York Stock Exchange, and the American Stock exchange. The stock still has to be registered for both exchanges. Dual Listings are sometimes confused with a cross listing. A cross...

    Dual Purpose Fund

    Dual Purpose Fund - A dual - purpose fund is a security created by a closed end investment that offers 2 classes of stock. A closed end stock has a fixed number of shares so it?s not like a typical investment stock. A dual- purpose stock offers two entitlements. One is income, the other is capital appreciation Preferred shareholders receive all distributions for interest income, and dividends. Common shareholders receive only distributions from capital gains on the liquidation date. Preferred shareholder has the firs right to payouts from the fund up to par value. Commons shareholders have the right to...

    Dummy CUSIP

    Dummy CUSIP - a dummy CUSIP is a number issued to a stock by the company before an official number is assigned. A CUSIP which is short for Committee on Uniform Securities, and Identification Procedures. Contains nine numbers that are unique from any other number, which identifies each and every single security. A dummy CUSIP is a set of numbers assigned to a stock prior to it being legally registered to be traded. The company assigns a dummy CUSIP for identification reasons temporarily, before the official number is registered. This is only for internal reasons by the company and not...

    Du Pont Analysis

    Du Pont Analysis - Du Pont analysis is specific instrument to examine and evaluate a company's return on equity This is important because poor performance on the company's return on equity, will lower the return for the shareholders. The Return on equity (ROE) is conceived by breaking it down into the categories. Leverage, ( how well the company is using its borrowed money) asset turnover, (net sales , divided by total assets)and profit margin.(net profit divided by sales, after taxes) The Du Pont Analysis is conceived by multiplying the profit margin leverage, and asset turnover and divided by the...

    Durable Goods

    Definition: The durable goods indicator is a monthly report that helps investors determine consumer confidence.  If durable goods sales are strong, consumers are confident about the economy and are more willing to make large purchases. Advice: This report has...

    Dutch Auction

    Dutch Auction - The Dutch auction which got its name from the famous auction back in the 17th century of Dutch Tulip bulbs, is a descending auction. Instead of the traditional negotiating process to set Initial Price offering (IPO) the Dutch auction uses a descending bidding process to set the highest price the issuing company can sell its remaining shares. The United States Treasury initializes the Dutch auction to sell its stock. William Vickrey ( noble prize winning economist) devised this pricing system. This is also known as a "clock auction" or an open-outcry descending-price auction The biding decends till...

    Dutch Auction Prefered Stock

    Dutch Auction Prefered Stock - A Dutch Autction Stock, is a capital stock that pays a varying dividind every 7 weeks..This dividend is determind the the corporpation using the Duch Auct ion ( a desending auction determined by the higest bidder, toset the price for the stock, ) The Duch Auction Prefered Stock ( also kown as Auction Rate Prefered stock) are bought and sold at face value , ranging from $1000- $500000. Dutch Auction prefered Stock are also known as Money Market Prefered Stock, and also known as Darts in some compnaies. In all cases the Dutch Auction Prefered...

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    Definition of the Day Asset Play

    Asset Play - An asset play is when a stock that is believed to be way undervalued, based on the value of the entire assets the company holds or owns. Specifically, they mean that the net value of all the company's assets are way higher than the company's market capitalization,...

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