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 services and safekeeping services.
Detachable Warrant - A detachable warrant Is also called a subscription warrant is and is a detachable certificate which gives shareholders the right to purchase future shares within the company either for a specific period of time, within a certain amount of years or they may have the right to purchase these new stock shares at any time. Usually there is a price stipulation where the price of the shares would be greater than the market price at the time of issuance. These detachable warrants are a form of derivatives and usually come with a preferred stock or bond. However, the stock, which can be purchased at a later date would be common stock. The benefit to the investor would be that if the stock prices increase beyond the detachable warrant price, the investor can sell them and make a profit. Detachable warrants are traded separately as an option on the option exchanges. Detachable warrants can be attractive to an investor because of debt offerings included, which can be removed and sold, separately.
Digested Security - A digested security is a security that an investor will purchase with the intention of keeping it for a very long period of time. The idea behind securing these securities is that the underlying security will eventually yield more than continuing to trade various options. The investor will also keep the options as well as the underlying security. They will do this even when the security is not performing as projected in the present, they will still hold on to the security and is options speculating that it will prove to be a better investment overall. Most investors will have at least one digested security to fall back upon even though they may trade their other securities. A digested security provides a solid foundation in the investor's portfolio.
Diluted earnings per share - Diluted earnings per share, refer the calculation of a metric equation that figures out the company's earning per share if all the convertible securities were exercised. The convertible securities would include outstanding convertible preferred stock, stock options (primary employee stock), convertible debentures, and warrants. The diluted earnings per share will always be lower than the simple earning per share unless a company has additional potential outstanding shares, however this situation rarely occurs. This analytic system is a conservative one because it would be unlikely that every investor would cash in his or her options all at once. Also, there is always the chance that these options and convertibles will be transferred into common stock.
Diluted Share - Diluted share refers to the reporting of diluted earnings per share, which is a metric calculation that figures out the company's earning per share if all the convertible securities were exercised. The convertible securities would include outstanding convertible preferred stock, stock options (primary employee stock), convertible debentures, and warrants. The diluted earnings per share will always be lower than the simple earning per share unless a company has additional potential outstanding shares, however this situation rarely occurs. This analytic system is a conservative one because it would be unlikely that every investor would cash in his or her options all at once. Also, there is always the chance that these options and convertibles will be transferred into common stock.
Dilution of Ownership - A dilution of ownership refer to reduction in the fractional ownership of the shareholder's shares. This situation can occur when additional common shares have been issued on the market, and or convertible stocks have been exercised. Therefore the present stockholders will see a reduction in value of their presently held stock. A company will perform a careful analysis to make sure the issuance of more stock is in their best interest. The process of dilution of ownership must also comply with all rules and regulations and the founding documents of the company and all amendments must be made to these documents.
Direct investment - A direct investment is any investment that is large enough that it will affect the company's future decisions. A direct investment could be the majority ownership, where the people who own more than 50 percent of the company's stocks is the direct investment, or it could be less than that if the remaining stocks are spread out in small increments. It could also be the reverse where the minority ownership is rather significant. A direct investment can also refer to the disbursement in a dividend reinvestment plan where cash dividends and capital gain is reinvested to purchase more stock. Or a DPP, which is a direct purchase plan, this plan is similar to a DRIP only you can be a first time purchaser. There are no brokerage fees involved in either plan.
Direct participation program - A direct participation program is a business strategy where investors participate directly in the cash flow and tax benefits afforded to the underlying security that they own. Direct participation programs are considered passive investments, which correspond to energy related or real estate investments. Direct participation plans are usually a form of a limited partnership where the investors are only liable for their investment, a subchapter S corporation which is a corporation with less than 101 shareholders and meets the tax requirements defined in subchapter S and acts as a limited partnership, or a general or a general partnership. Direct participation program is also known as a direct participation plan.
Direct purchase program - The beauty of a direct purchase program is that an investor can buy stock directly from a company without having to go through a broker and pay the broker commissions. In order to run a direct purchase program the company must register with the Securities and Exchange Commission (SEC). The direct purchase program is offered to the public and the investor does not have to have a brokerage account to participate. An investor does not have to be a current shareholder with the company and can purchase as little as one share. The company will not charge commission, but may ask a fee for starting up the program. Direct purchase program is also called a direct stock purchase program.