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Glossary of Financial Terms: D




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This article is from the Glossary of Financial Terms.

Glossary of Financial Terms: D

  • Day order
    An order to buy or sell stock that automatically expires if it can't be executed on the day it is entered.

  • Debt/equity ratio
    Indicator of financial leverage. Compares assets provided by creditors to assets provided by shareholders. Determined by dividing long term debt by common stockholders' equity.

  • Decile rank
    Performance over time, rated on a scale of 1-10. 1 indicates that a mutual fund's return was in the top 10 % of funds being compared, while 3 means the return was in the top 30 %. Objective Rank compares all funds in the same investment strategy category. All Rank compares all funds.

  • Declaration date
    The date on which a firm's directors meet and announce the date and amount of the next dividend.

  • Deferred taxes
    A non-cash expense that provides a source of free cash flow. Amount allocated during the period to cover tax liabilities that have not yet been paid.

  • Depreciation
    A non-cash expense that provides a source of free cash flow. Amount allocated during the period to amortize the cost of acquiring long term assets over the useful life of the assets.

  • Derivative security
    A financial security, such as an option, or future, whose value is derived in part from the value and characteristics of another security, the underlying security.

  • Detrend
    To remove the general drift, tendency or bent of a set of statistical data as related to time.

  • Difference from s&p
    A mutual fund's return minus the change in the Standard & Poors 500 Index for the same time period. A notation of -5.00 means the fund return was 5 percentage points less than the gain in the S&P, while 0.00 means that the fund and the S&P had the same return.

  • Distributions
    Payments from fund or corporate cash flow. May include dividends from earnings, capital gains from sale of portfolio holdings and return of capital. Fund distributions can be made by check or by investing in additional shares. Funds are required to distribute capital gains (if any) to shareholders at least once per year. Some Corporations offer Dividend ReinvestmentPlans (DRP).

  • Dividend reinvestment plans (drp)
    Plans offered by many corporations for the reivestment of dividends, sometimes at a discount from market price, on the dividend payment date. Many DRP's also allow the investment of additional cash from the shareholder. The DRP is usually administered by the company without charges to the holder.

  • Divergence
    When two or more averages or indices fail to show confirming trends.

  • Dividend
    Distribution of a portion of a company's earnings, cash flow or capital to shareholders, in cash or additional stock.

  • Dividend yield (stocks)
    Indicated Yield represents annual dividends divided by current stock price.

  • Dividend yield (funds)
    Indicated Yield represents return on a share of a mutual fund held over the past 12 months. Assumes fund was purchased 1 year ago. Reflects effect of sales charges (at current rates), but ot redemption charges.

  • Dividends per share
    Dividends paid for the past 12 months divided by the number of common shares outstanding, as reported by a company. The number of shares often is determined by a weighted average of shares outstanding over the reporting term.

  • Dividend reinvestment plan
    Automatic reinvestment of shareholder dividends in more shares of a company's stock, often without commissions. Some plans provide for the purchase of additional shares at a deiscount to market price. Dividend reinvestment plans allow shareholders to accumulate stock over the long term using dollar cost averaging.

  • Downgrade
    A classic negative change in ratings for a stock, and or other rated security.

 

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