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Glossary of financial terms - Letter D

  • DAIO

    Tags:  options typology

    See  


  • DAOO

    Tags:  options typology

    See  


  • dark pool

    Tags:  financial markets quoting and negotiation systems

    Dark pools are essentially private stock markets which are run by certain banks or brokers. They allow investors to trade large blocks of shares anonymously and without having to disclose volumes or prices.

     


  • daycount convention

    Tags:  financial instruments market conventions

    Convention applied for the determination of the number of days in interest calculations.

     


  • DCF

    Tags:  corporate finance financial analysis

    See  


  • DCM

    Tags:  financial markets status

    See  


  • DDM

    Tags:  corporate finance financial analysis

    See  


  • debasement

    Tags:  concept economy monetary policy

    Debasement is the act of voluntarily lowering the value of a currency, particularly a commodity money.

     


  • debt-equity swap

    Tags:  concept corporate finance

    See  


  • debt-for-equity swap

    Tags:  concept corporate finance

    A debt restructuring method in which creditors of a company in difficulties agree to cancel some or all of the debt in exchange for equity in the company.

     


  • deep discount bond

    Tags:  bonds typology

    Bonds issued at a significant discount to par value, typically around 20%, and redeemed at par or a premium to par. Deep discount bonds usually pay a coupon that is well below market rates.

     


  • deep in-the-money

    Tags:  options pricing and analysis valuation and pricing

    An option is said to be deep in-the-money when it has a strike price that is substantially lesser (call option) or greater (put option) than the current market price of the underlying asset.

     


  • deep out of the money

    Tags:  options valuation and pricing

    Term used to describe an option that is unlikely to go into the money prior to its expiration. An arbitrary term.

     


  • default

    Tags:  events finance (general)

    Term designing the failure by a counterparty to fulfill its financial obligations on an instrument or transaction e.g. failure to repay interest or principal on a bond, failure to make a margin call in a futures transaction, or failure to make interest payments in a swap.

     


  • default risk

    Tag:  risk management

    Risk of a financial loss caused by the incapacity of the debtor to meet his financial obligations (interest payments, reimbursement …) resulting from a financial contract or transaction.

     


  • delivery month

    Tags:  characteristics derivatives

    The month during which a futures contract expires, and delivery is made on that contract.

     


  • delivery versus delivery (DvD)

    Tags:  concept transaction settlement

    Delivery versus delivery is a securities settlement mechanism that links two securities transfers in such a way as to ensure that delivery of one security occurs if and only if the corresponding delivery of the other security occurs.

     


  • delivery versus free (DVF)

    Tags:  market transactions transaction settlement

    See  


  • delivery versus payment (DvP)

    Tags:  concept transaction settlement

    DvP is a mechanism used in the settlement of securities transactions which links the delivery (securities) and payment (cash) obligations in such a way as to ensure that the delivery of the securities occurs if, and only if, the corresponding payment occurs.

     


  • delta

    Tags:  options valuation and pricing

    The delta of an option measures the change in the option premium for a given change in price of the underlying asset or security.

     


  • delta hedging

    Tags:  options strategies

    Hedging a written call option position by using the option delta to calculate how much of the underlying asset to buy.

     


  • dematerialisation

    Tags:  financial instruments financial techniques

    In finance, the term dematerialisation refers to the substitution of paper-form securities by book-entry securities.

     


  • Depository Trust & Clearing Corporation (DTCC)

    Tags:  organisations or institutions transaction settlement

    The Depository Trust & Clearing Corporation is a financial services company providing clearing and settlement services to financial markets in the United States.

     


  • Depository Trust Company (DTC)

    Tags:  organisations or institutions transaction settlement

    The Depository Trust Company is an American central securities depository.

     


  • derivative

    Tags:  derivatives financial instruments

    See  


  • derivative product

    Tags:  derivatives financial instruments

    See  


  • Deutscher Aktienindex (DAX)

    Tags:  indices stock markets

    The major German share index, covering 30 shares.

     


  • Deutsche Terminbörse (DTB)

    Tags:  financial markets regulated markets

    DTB was a German derivatives exchange between 1990 and 1998, when it merged with Swiss Exchange's Soffex to form

    .

     


  • devaluation

    Tags:  concept economy monetary policy

    Devaluation is the official change in the value of a country's currency relative to other currencies in a fixed exchange rate system.

     


  • diff swap

    Tags:  financial instruments interest rate derivatives

    A diff swap is a floating / floating interest rate swap where the interest rates are those of two different currencies. Payments are however made in only one currency to eliminate foreign exchange exposure.

     


  • digital option

    Tags:  options typology

    See  


  • direct clearing member (DCM)

    Tags:  financial markets organisations or institutions status

    A direct clearing member is an exchange member which is entitled to clear only its own transactions, those of its customers, and those of its affiliated non-clearing members.

     


  • direct market access (DMA)

    Tags:  characteristics financial markets quoting and negotiation systems

    Direct market access describe a functionality offered by electronic trading facilities that enables investors to directly access the order book of an exchange, thus trading at a lower cost.

     


  • dirty price

    Tags:  bonds valuation and pricing

    The cash price paid by the purchaser of a coupon bond. It is calculated by adding accrued interest to the quoted price.

     


  • discounted cash flow (DCF)

    Tags:  corporate finance financial analysis

    Discounted cash flow analysis is a valuation method used to evaluate an investment opportunity, be it a project, a company or an asset. It projects future cash flows and discounts them, using a required annual rate, to calculate present value estimates.

     


  • discounted interest

    Tags:  characteristics financial instruments

    Interest is said to be discounted when it is substracted at the begin of duration of an investment instead of being added at the end.

     


  • discount factor

    Tags:  financial mathematics time value of money

    The discount factor is the factor by which a future cash flow has to be multiplied in order to obtain its present value.

     


  • discounting

    Tags:  concept time value of money

    Discounting is the calculation of the present value of a cash flow which is due to be paid or received in the future.

     


  • discount security

    Tags:  interest rate instruments typology

    Discount securities are securities which are issued at a discount and do not pay a cash flow until maturity.

     


  • distribution channel

    Tags:  concept economy

    A distribution channel is a sequence of businesses and/or intermediaries through which a company's good or service goes until it reaches the consumer.

     


  • distribution fund

    Tags:  asset management typology

    A distribution fund is a mutual fund which pays out the income (dividends and interest mainly) collected from the securities it holds to its shareholders instead of reinvesting it.

     


  • DITM

    Tags:  options pricing and analysis

    See  


  • dividend

    Tags:  equities valuation and pricing

    Dividend is a portion of a company’s profit distributed to its shareholders. In most cases dividend is paid in cash, but it can also take the form of share attributions or other property.

     


  • dividend discount model (DDM)

    Tags:  equities metric stock markets valuation and pricing

    The dividend discount model is a method of valuing a company's stock price based on the assumption that its stock is equal to the net present value of future dividends.

     


  • dividend payout ratio (DPR)

    Tags:  equities pricing and analysis

    The dividend payout ratio is the proportion of a company's earnings which is paid out as dividends to shareholders. It is typically expressed as a percentage of the latter.

     


  • dividend per share (DPS)

    Tags:  metric ratios stock markets valuation and pricing

    Dividend per share measures the dividend payout per share of a company's common stock.

     


  • DJIA

    Tags:  indices stock markets

    Country:   United States of America

    See  


  • DMA

    Tags:  characteristics quoting and negotiation systems

    See  


  • dollar-cost averaging

    Tags:  concept investments

    Investment principle which consists of making regular purchases of shares (or other financial assets) for the same amount each time, thus purchasing more of the asset when the prices are low, and less when the prices are high.

     


  • Dow Jones Industrial Average (DJIA)

    Tags:  indices stock markets

    The Dow Jones Industrial Average, also simply called the Dow, is a stock market index of 30 large stocks traded on the New York Stock Exchange and the Nasdaq.

     


  • down-and-in option (DAIO)

    Tags:  options typology

    A down-and-in option is a type of barrier option that comes into existence when the price of the underlying asset falls to a predetermined price level (the barrier price).

     


  • down-and-out option (DAOO)

    Tags:  options typology

    A down-and-out option is a type of barrier option that starts as a plain vanilla option but ceases to exist when the price of the underlying asset falls to a predetermined price level (the barrier price).

     


  • DPR

    Tags:  equities pricing and analysis

    See  


  • DPS

    Tags:  ratios stock markets

    See  


  • drawdown swap

    Tags:  financial instruments interest rate derivatives

    See  


  • DTB

    Tags:  financial markets regulated markets

    Country:   Germany

    See  


  • DTC

    Tags:  organisations or institutions transaction settlement

    Country:   United States of America

    See  


  • DTCC

    Tags:  organisations or institutions transaction settlement

    Country:   United States of America

    See  


  • duration

    Tags:  bonds valuation and pricing

    Duration is a summary measure of maturity, coupon and yield effects that is used to approximate a bond's interest rate risk.

     


  • DV01

    Tags:  bonds pricing and analysis

    See  


  • DV01

    Tags:  bonds pricing and analysis

    See  


  • DVD

    Tags:  market transactions transaction settlement

    See  


  • DVF

    Tags:  market transactions transaction settlement

    See  


  • DVP

    Tags:  market transactions transaction settlement

    See  


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