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https://www.investopedia.com/terms/d/differential.asp
Differential
Differential What Is a Differential? A differential is the degree of adjustment to the value or grade of physical deliverables, or to their location, as permitted by a futures contract. While not true for all, some futures contracts permit differentials, also known as an allowance. Such futures contracts permit the sho...
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https://www.investopedia.com/terms/d/digicash.asp
DigiCash
DigiCash What Is DigiCash? Founded by electronic currency pioneer David Chaum in 1989, DigiCash was one of the earliest electronic money companies. Chaum developed a number of cryptographic protocols that governed DigiCash transactions, which set his currency apart from its competitors and made DigiCash an important pr...
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https://www.investopedia.com/terms/d/digital-currency.asp
Digital Currency
Digital Currency What Is Digital Currency? Digital currency is a form of currency that is available only in digital or electronic form, and not in physical form. It is also called digital money, electronic money, electronic currency, or cyber cash. Key Takeaways Digital currencies are currencies that are only accessi...
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https://www.investopedia.com/terms/d/digital-money.asp
Digital Money
Digital Money What Is Digital Money? Any means of payment that exists purely in electronic form. Digital money is not tangible like a dollar bill or a coin. It is accounted for and transferred using computers. The most successful and widely-used form of digital money is the cryptocurrency Bitcoin. Digital money is exch...
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https://www.investopedia.com/terms/d/digital-native.asp
Digital Native
Digital Native What is a Digital Native? Digital native is a term coined by Mark Prensky in 2001 used to describe the generation of people who grew up in the era of ubiquitous technology, including computers and the internet. Digital natives are comfortable with technology and computers at an early age and consider tec...
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https://www.investopedia.com/terms/d/digital-nomad.asp
Digital Nomad
Digital Nomad What Is a Digital Nomad? Digital nomads are people who are location-independent and use technology to perform their job. Digital nomads work remotely, telecommuting rather than being physically present at a company's headquarters or office. The digital nomad lifestyle has been made possible through a numb...
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https://www.investopedia.com/terms/d/digital-wallet.asp
Digital Wallet
Digital Wallet A digital wallet (or e-wallet) is a software-based system that securely stores users' payment information and passwords for numerous payment methods and websites. By using a digital wallet, users can complete purchases easily and quickly with near-field communications technology. They can also create str...
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https://www.investopedia.com/terms/d/diluted-normalized-earnings-per-share.asp
Diluted Normalized Earnings Per Share
Diluted Normalized Earnings Per Share What Is Diluted Normalized Earnings Per Share? Diluted normalized earnings per share shows a company's profit per share after stripping out one-off income or expenses and assuming all stock that could potentially be issued has been. The metric is calculated by taking profit (less o...
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https://www.investopedia.com/terms/d/dilutedfounders.asp
Diluted Founders
Diluted Founders What Are Diluted Founders? "Diluted founders" is a term used by venture capitalists (VCs) to describe the process of a startup's founders gradually losing ownership of the company they created. Startup founders who rely on venture capital to grow their business must surrender more and more ownership of...
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https://www.investopedia.com/terms/d/dilution-protection.asp
Dilution Protection
Dilution Protection What Is Dilution Protection? Dilution protection refers to contractual provisions that seek to restrict a corporation's power to reduce an investor's stake in the company, after later funding rounds occur. Dilution protection kicks in when a company's actions threaten to diminish an investor's overa...
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https://www.investopedia.com/terms/d/dilutiveacquisition.asp
Dilutive Acquisition
Dilutive Acquisition What Is a Dilutive Acquisition? A dilutive acquisition is a takeover transaction that decreases the acquirer's earnings per share (EPS) through lower (or negative) earnings contribution or if additional shares are needed to be issued by the acquiring company to pay for the acquisition. Key Takeaway...
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https://www.investopedia.com/terms/d/dinks.asp
Dual Income, No Kids (DINK)
Dual Income, No Kids (DINK) What Is Dual Income, No Kids (DINK)? "Dual income, no kids" (DINK) is a slang phrase for a household in which there are two incomes and no children. Couples living in a DINK household frequently have more disposable income because they do not have the added expenses that come with children. ...
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https://www.investopedia.com/terms/d/direct-investment.asp
Direct Investment
Direct Investment What Is Direct Investment? Direct investment is more commonly referred to as foreign direct investment (FDI). FDI refers to an investment in a foreign business enterprise designed to acquire a controlling interest in the enterprise. The direct investment provides capital funding in exchange for an equ...
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https://www.investopedia.com/terms/d/direct-mail.asp
Direct Mail
Direct Mail What Is Direct Mail? Direct mail is a strategy of sending advertising mail, such as pre-approved credit card applications or nonprofit fundraising letters, directly to potential consumers based on demographic information. Key Takeaways Direct mail is an advertising strategy of sending mail, such as pre-app...
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https://www.investopedia.com/terms/d/direct-marketing.asp
Direct Marketing
Direct Marketing What Is Direct Marketing? Direct marketing consists of any marketing that relies on direct communication or distribution to individual consumers, rather than through a third party such as mass media. Mail, email, social media, and texting campaigns are among the delivery systems used. It is called dire...
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https://www.investopedia.com/terms/d/direct_method.asp
Direct Method
Direct Method What Is the Direct Method? The direct method is one of two accounting treatments used to generate a cash flow statement. The statement of cash flows direct method uses actual cash inflows and outflows from the company's operations, instead of modifying the operating section from accrual accounting to a ca...
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https://www.investopedia.com/terms/d/directcost.asp
Direct Cost
Direct Cost What Is a Direct Cost? A direct cost is a price that can be directly tied to the production of specific goods or services. A direct cost can be traced to the cost object, which can be a service, product, or department. Direct and indirect costs are the two major types of expenses or costs that companies can...
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https://www.investopedia.com/terms/d/directional-drilling.asp
Directional Drilling
Directional Drilling What Is Directional Drilling? Directional drilling is a technique used by oil-extraction companies in order to access oil in underground reserves. Most oil wells are positioned above the targeted reservoir, so accessing them involves drilling vertically from the surface through to the well below. H...
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https://www.investopedia.com/terms/d/directionaltrading.asp
Directional Trading
Directional Trading Directional trading refers to strategies based on the investor's view of the future direction of the market. This will be the sole determining factor in whether the investor decides to sell or buy the security. Understanding Directional Trading Directional trading refers to trading strategies based ...
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https://www.investopedia.com/terms/d/directpublicoffering.asp
Direct Public Offering (DPO)
Direct Public Offering (DPO) What Is a Direct Public Offering (DPO)? A direct public offering (DPO) is a type of offering in which a company offers its securities directly to the public to raise capital. An issuing company using a DPO eliminates the intermediaries—investment banks, broker-dealers, and underwriters—that...
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https://www.investopedia.com/terms/d/dirtyprice.asp
Dirty Price
Dirty Price What Is Dirty Price? A dirty price is a bond pricing quote, which refers to the cost of a bond that includes accrued interest based on the coupon rate. Bond price quotes between coupon payment dates reflect the accrued interest up to the day of the quote. In short, a dirty bond price includes accrued intere...
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https://www.investopedia.com/terms/d/disaster-recovery-site.asp
Disaster Recovery Site
Disaster Recovery Site What Is a Disaster Recovery Site? A disaster recovery site, also known as a backup site, is a place that a company can temporarily relocate to following a security breach or natural disaster. The site is just one facet of the company's larger disaster recovery or business continuity plan. Key Tak...
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https://www.investopedia.com/terms/d/disasterloss.asp
Disaster Loss
Disaster Loss What Is Disaster Loss? A disaster loss is a special type of tax-deductible loss, similar to a casualty loss, where a loss has been incurred by taxpayers who reside in an area in the U.S. that has been designated as a federal disaster area by the president. Disaster losses can arise from such phenomena as ...
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https://www.investopedia.com/terms/d/disclaimertrust.asp
Disclaimer Trust
Disclaimer Trust What Is a Disclaimer Trust? A disclaimer trust is a type of trust that contains embedded provisions, usually included in a will, allowing a surviving spouse to put specific assets under the trust by disclaiming ownership of a portion of the estate. Disclaimed property interests are then transferred to ...
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https://www.investopedia.com/terms/d/disclosure.asp
Disclosure
Disclosure What Is Disclosure? In the financial world, disclosure refers to the timely release of all information about a company that may influence an investor's decision. It reveals both positive and negative news, data, and operational details that impact its business. Similar to disclosure in the law, the concept i...
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https://www.investopedia.com/terms/d/disclosurestatement.asp
Disclosure Statement
Disclosure Statement What Is a Disclosure Statement? For retirement accounts, a disclosure statement is a document explaining the rules of a financial transaction in plain, nontechnical language. An IRA plan administrator must provide a disclosure statement to the IRA owner at least seven days before the IRA is establi...
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https://www.investopedia.com/terms/d/discount-spread.asp
Discount Spread
Discount Spread What Is a Discount Spread? A discount spread occurs when the forward points that are subtracted from the spot rate result in a negative forward spread. In a discount spread, the bid price will be higher than the offer price, indicating that there expected price in the future will be lower than it is at ...
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https://www.investopedia.com/terms/d/discount_to_nav.asp
Discount to Net Asset Value
Discount to Net Asset Value What Is Discount to Net Asset Value? A discount to net asset value is a pricing situation that occurs when an exchange-traded fund (ETF) or mutual fund’s market trading price is lower than its daily net asset value (NAV). Several factors may trigger a discount, including instances where the ...
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https://www.investopedia.com/terms/d/discounted-after-tax-cash-flow.asp
Discounted After-Tax Cash Flow
Discounted After-Tax Cash Flow What Is Discounted After-Tax Cash Flow? The discounted after-tax cash flow method is an approach to valuing an investment by assessing the amount of money generated and taking into account the cost of capital along with the applicable marginal tax rate. Discounted after-tax cash flow is s...
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https://www.investopedia.com/terms/d/discounted-payback-period.asp
Discounted Payback Period
Discounted Payback Period What Is the Discounted Payback Period? The discounted payback period is a capital budgeting procedure used to determine the profitability of a project. A discounted payback period gives the number of years it takes to break even from undertaking the initial expenditure, by discounting future c...
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https://www.investopedia.com/terms/d/discounting-mechanism.asp
Discounting Mechanism
Discounting Mechanism What Is a Discounting Mechanism? A discounting mechanism operates on the premise that the stock market essentially discounts, or takes into consideration, all available information including present and potential future events. When unexpected developments occur, the market discounts this new info...
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https://www.investopedia.com/terms/d/discountmargin.asp
Discount Margin—DM
Discount Margin—DM What Is a Discount Margin—DM? A discount margin (DM) is the average expected return of a floating-rate security (typically a bond) that's earned in addition to the index underlying, or reference rate of, the security. The size of the discount margin depends on the price of the floating- or variable-r...
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https://www.investopedia.com/terms/d/discover-card.asp
Discover Card
Discover Card What Is Discover Card? Discover Card is a credit card brand that is issued by the American financial services company, Discover Financial (DFS). Originally issued by the retailer Sears Roebuck, & Co. in 1985, Discover cards first distinguished themselves for their reduced fee structure and pioneering cash...
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https://www.investopedia.com/terms/d/discretionary_arm.asp
Discretionary ARM
Discretionary ARM What Is a Discretionary ARM? A discretionary ARM is a popular home loan instrument available outside of the U.S.; a variable rate mortgage in which creditors may change interest rates at their discretion. Discretionary ARMs are common in Europe. Key Takeaways A discretionary arm is a type of variabl...
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https://www.investopedia.com/terms/d/discretionaryincome.asp
Discretionary Income
Discretionary Income What Is Discretionary Income? Discretionary income is the amount of an individual's income that is left for spending, investing, or saving after paying taxes and paying for personal necessities, such as food, shelter, and clothing. Discretionary income includes money spent on luxury items, vacation...
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https://www.investopedia.com/terms/d/disinflation.asp
Disinflation
Disinflation What Is Disinflation? Disinflation is a temporary slowing of the pace of price inflation and is used to describe instances when the inflation rate has reduced marginally over the short term. Key Takeaways Disinflation is a temporary slowing of the pace of price inflation and is used to describe instances...
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https://www.investopedia.com/terms/d/disinvestment.asp
Disinvestment
Disinvestment What Is Disinvestment? Disinvestment is the action of an organization or government selling or liquidating an asset or subsidiary. Absent the sale of an asset, disinvestment also refers to capital expenditure (CapEx) reductions, which can facilitate the re-allocation of resources to more productive areas ...
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https://www.investopedia.com/terms/d/dismalscience.asp
Dismal Science
Dismal Science What is Dismal Science? Dismal science is a term coined by Scottish writer, essayist, and historian Thomas Carlyle to describe the discipline of economics. The term is said to have been inspired by T. R. Malthus' gloomy prediction that population would always grow faster than food, dooming mankind to une...
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https://www.investopedia.com/terms/d/disposableincome.asp
Disposable Income
Disposable Income Disposable Income: An Overview Disposable income, also known as disposable personal income (DPI), is the amount of money that an individual or household has to spend or save after income taxes have been deducted. At the macro level, disposable personal income is closely monitored as one of the key eco...
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https://www.investopedia.com/terms/d/distress-price.asp
Distress Price
Distress Price What Is a Distress Price? A distress price is when a company chooses to mark down the price it charges for an item or service instead of discontinuing the product altogether. Such decisions are usually made during difficult market conditions when the sale of a particular item or service has slowed dramat...
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https://www.investopedia.com/terms/d/distressale.asp
Distress Sale
Distress Sale What Is a Distress Sale? A distress sale—also called a distressed sale—occurs when a property, stock, or other asset must be sold quickly. Distress sales often result in a financial loss for the seller who, for reasons of economic duress, must accept a lower price. The proceeds from these assets are most ...
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https://www.investopedia.com/terms/d/distressedsecurities.asp
Distressed Securities
Distressed Securities What Are Distressed Securities? Distressed securities are financial instruments issued by a company that is near to—or currently going through—bankruptcy. Distressed securities can include common and preferred shares, bank debt, trade claims, and corporate bonds. A particular security can also be ...
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https://www.investopedia.com/terms/d/distributed-ledger-technology-dlt.asp
Distributed Ledger Technology (DLT)
Distributed Ledger Technology (DLT) What Is Distributed Ledger Technology (DLT)? Distributed Ledger Technology (DLT) refers to the technological infrastructure and protocols that allows simultaneous access, validation, and record updating in an immutable manner across a network spread across multiple entities or locati...
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https://www.investopedia.com/terms/d/distributing-syndicate.asp
Distributing Syndicate
Distributing Syndicate DEFINITION of Distributing Syndicate Distributing syndicate is a group of investment banks that work together to sell an initial public offering (IPO) of stock or other securities to the market. Investment banks often form syndicates when working on large securities offerings to reduce risk and t...
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https://www.investopedia.com/terms/d/distribution-channel.asp
Distribution Channel
Distribution Channel What Is a Distribution Channel? A distribution channel is a chain of businesses or intermediaries through which a good or service passes until it reaches the final buyer or the end consumer. Distribution channels can include wholesalers, retailers, distributors, and even the Internet. Distribution ...
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https://www.investopedia.com/terms/d/distribution-yield.asp
Distribution Yield
Distribution Yield What is a Distribution Yield? A distribution yield is the measurement of cash flow paid by an exchange-traded fund (ETF), real estate investment trust, or another type of income-paying vehicle. Rather than calculating the yield based on an aggregate of distributions, the most recent distribution is a...
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https://www.investopedia.com/terms/d/divergence.asp
Divergence Definition and Uses
Divergence Definition and Uses What is Divergence? Divergence is when the price of an asset is moving in the opposite direction of a technical indicator, such as an oscillator, or is moving contrary to other data. Divergence warns that the current price trend may be weakening, and in some cases may lead to the price ch...
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https://www.investopedia.com/terms/d/diversification.asp
Diversification
Diversification What Is Diversification? Diversification is a risk management strategy that mixes a wide variety of investments within a portfolio. A diversified portfolio contains a mix of distinct asset types and investment vehicles in an attempt at limiting exposure to any single asset or risk. The rationale behind ...
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https://www.investopedia.com/terms/d/diversifiedfund.asp
Diversified Fund
Diversified Fund What Is a Diversified Fund? A diversified fund is an investment fund that is broadly diversified across multiple market sectors or geographic regions. It holds multiple securities, often in multiple asset classes. Its broad market diversification helps to prevent idiosyncratic events in one area from a...
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https://www.investopedia.com/terms/d/divestment.asp
Divestment
Divestment What Is Divestment? Divestment is the process of selling subsidiary assets, investments, or divisions of a company in order to maximize the value of the parent company. Also known as divestiture, divestment is effectively the opposite of an investment and is usually done when that subsidiary asset or divisio...
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https://www.investopedia.com/terms/d/dividend-arbitrage.asp
Dividend Arbitrage
Dividend Arbitrage What Is Dividend Arbitrage? Dividend arbitrage is an options trading strategy that involves purchasing put options and an equivalent amount of underlying stock before its ex-dividend date and then exercising the put after collecting the dividend. When used on a security with low volatility (causing l...
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https://www.investopedia.com/terms/d/dividend-capture.asp
Dividend Capture
Dividend Capture What Is Dividend Capture? Dividend capture is a timing-oriented investment strategy focused on buying and selling dividend-paying stocks. The strategy involves buying a stock just before its ex-dividend date to capture the dividend, then selling it on or after the ex-dividend date. The purpose of the s...
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https://www.investopedia.com/terms/d/dividend-clientele.asp
Dividend Clientele
Dividend Clientele What Is Dividend Clientele? Dividend clientele is the name for a group of a company’s stockholders who share a similar view about the company's dividend policy. Shareholders in a dividend clientele generally base their preferences for a particular dividend payout ratio on comparable income level, tax...
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https://www.investopedia.com/terms/d/dividend-etf.asp
Dividend ETF
Dividend ETF What Is a Dividend ETF? A dividend ETF is an exchange traded fund (ETF) designed to invest in a basket of dividend-paying stocks. The fund manager will choose a portfolio of stocks, based on a dividend index, that pays out dividends to investors, thereby working as an income-investing strategy for individu...
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https://www.investopedia.com/terms/d/dividend-per-share.asp
Dividend Per Share – DPS
Dividend Per Share – DPS What Is Dividend Per Share? Dividend per share (DPS) is the sum of declared dividends issued by a company for every ordinary share outstanding. The figure is calculated by dividing the total dividends paid out by a business, including interim dividends, over a period of time by the number of ou...
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https://www.investopedia.com/terms/d/dividend_frequency.asp
Dividend Frequency
Dividend Frequency Dividend frequency is how often a dividend is paid by an individual stock or fund. Dividend frequency can vary from monthly to annually. The managers of an investment will determine its dividend frequency, which can be based on numerous factors, including interest rates. Key Takeaways Dividend frequ...
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https://www.investopedia.com/terms/d/dividendpayoutratio.asp
Dividend Payout Ratio
Dividend Payout Ratio What Is a Dividend Payout Ratio? The dividend payout ratio is the ratio of the total amount of dividends paid out to shareholders relative to the net income of the company. It is the percentage of earnings paid to shareholders in dividends. The amount that is not paid to shareholders is retained b...
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https://www.investopedia.com/terms/d/dividendsignaling.asp
Dividend Signaling
Dividend Signaling What Is Dividend Signaling? Dividend signaling is a theory that suggests that a company announcement of an increase in dividend payouts is an indication of positive future prospects. The theory is directly tied to game theory; managers with good investment potential are more likely to signal. While t...
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https://www.investopedia.com/terms/d/dividendtaxcredit.asp
Dividend Tax Credit Definition
Dividend Tax Credit Definition What Is the Dividend Tax Credit? The dividend tax credit is the amount that a Canadian resident applies against his or her tax liability on the grossed-up portion of dividends received from Canadian corporations. The gross-up and the dividend tax credit are applicable to individuals, no...
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https://www.investopedia.com/terms/d/diy-investing.asp
Do-It-Yourself (DIY) Investing
Do-It-Yourself (DIY) Investing What is Do-It-Yourself (DIY) Investing? Do-it-yourself (DIY) investing is a method and strategy in which retail or individual investors choose to build and manage their own portfolios. Do-it-yourself investors commonly utilize discount brokerages and investment account platforms as oppose...
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https://www.investopedia.com/terms/d/dj-aigci.asp
Dow Jones Commodity Index (DJCI)
Dow Jones Commodity Index (DJCI) What Is the Dow Jones Commodity Index (DJCI)? The Dow Jones Commodity Index (DJCI) is a weighted index that tracks a wide range of 28 different commodity futures contracts, including metals, agricultural products, and energy commodities such as oil and gas. Key Takeaways The Dow Jones ...
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https://www.investopedia.com/terms/d/djia_yield.asp
Dow Jones Industrial Average (DJIA) Yield
Dow Jones Industrial Average (DJIA) Yield What Is the Dow Jones Industrial Average (DJIA) Yield? The Dow Jones Industrial Average (DJIA) yield is the aggregate dividend yield on the 30 stocks that make up the Dow Jones Industrial Average (DJIA). The yield is dividend distributions divided by the index value divided by ...
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https://www.investopedia.com/terms/d/djones-sustainability-na-index.asp
Dow Jones Sustainability North America Index
Dow Jones Sustainability North America Index What Is the Dow Jones Sustainability (DJSI) North America Index? The Dow Jones Sustainability North America Index, or DJSI North America, is a stock index that captures the top 20% of the largest 600 stocks in the S&P Global Broad Market Index (BMI) based on their sustainabi...
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https://www.investopedia.com/terms/d/djones-sustainability-world.asp
Dow Jones Sustainability World Index
Dow Jones Sustainability World Index What Is the Dow Jones Sustainability World Index? The Dow Jones Sustainability World Index, or DJSI World, is a global index consisting of the top 10% of the largest 2,500 stocks in the S&P Global Broad Market Index based on their sustainability and environmental practices. The inde...
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https://www.investopedia.com/terms/d/djta.asp
Dow Jones Transportation Average (DJTA)
Dow Jones Transportation Average (DJTA) What Is the Dow Jones Transportation Average? The Dow Jones Transportation Average (DJTA), sometimes simply known as the "Dow Transports" is a price-weighted average of 20 transportation stocks traded in the United States. The Dow Jones Transportation Average is the oldest U.S....
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https://www.investopedia.com/terms/d/dlom.asp
Discounts For Lack Of Marketability (DLOM)
Discounts For Lack Of Marketability (DLOM) What Does Discounts For Lack Of Marketability Mean? Discounts for lack of marketability (DLOM) refer to the method used to help calculate the value of closely held and restricted shares. The theory behind DLOM is that a valuation discount exists between a stock that is publicl...
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https://www.investopedia.com/terms/d/dmi.asp
Directional Movement Index (DMI)
Directional Movement Index (DMI) What Is the Directional Movement Index (DMI)? The directional movement index (DMI) is an indicator developed by J. Welles Wilder in 1978 that identifies in which direction the price of an asset is moving. The indicator does this by comparing prior highs and lows and drawing two lines: a...
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https://www.investopedia.com/terms/d/dodd-frank-financial-regulatory-reform-bill.asp
Dodd-Frank Wall Street Reform and Consumer Protection Act
Dodd-Frank Wall Street Reform and Consumer Protection Act What Is the Dodd-Frank Wall Street Reform and Consumer Protection Act? The Dodd-Frank Wall Street Reform and Consumer Protection Act is a massive piece of financial reform legislation that was passed in 2010, during the Obama administration. It was created as a ...
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https://www.investopedia.com/terms/d/dogeatdog.asp
Dog Eat Dog
Dog Eat Dog What Is Dog Eat Dog? Dog eat dog refers to intense competition in a market. Dog eat dog competition most commonly arises in markets where products or services have become commoditized. In this case, no company can create a competitive advantage in any way other than competing on price. Such intense competit...
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https://www.investopedia.com/terms/d/dojima-rice-exchange.asp
Dojima Rice Exchange
Dojima Rice Exchange What Is the Dojima Rice Exchange? The Dojima Rice Exchange was a commodity futures exchange specializing in rice. Founded in 1697 in Osaka, Japan, the Dojima Rice Exchange is considered the world’s first commodity futures exchange. Although the Dojima Rice Exchange was dissolved in 1939, it is su...
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https://www.investopedia.com/terms/d/dol.asp
Department of Labor (DOL)
Department of Labor (DOL) What Is the Department of Labor (DOL)? The Department of Labor (DOL) is a U.S. cabinet-level agency responsible for enforcing federal labor standards and promoting workers' wellbeing. The office is headed by the Secretary of Labor, which has been filled by Eugene Scalia since Sept. 27, 2019. K...
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https://www.investopedia.com/terms/d/dollar-bull.asp
Dollar-Bull
Dollar-Bull What Is a Dollar-Bull? A dollar-bull is an investor or trader who is optimistic about the value of the U.S. dollar (USD) and expects it to appreciate versus other major currencies. The term is used in currency trading (forex trading) and can be applied to long-term and short-term views of the U.S. dollar in...
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https://www.investopedia.com/terms/d/dollar-duration.asp
Dollar Duration
Dollar Duration What is the Dollar Duration The dollar duration measures the dollar change in a bond's value to a change in the market interest rate. The dollar duration is used by professional bond fund managers as a way of approximating the portfolio's interest rate risk. Dollar duration is one of several different m...
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https://www.investopedia.com/terms/d/dollar-shortage.asp
Dollar Shortage
Dollar Shortage What is a Dollar Shortage? A dollar shortage occurs when a country lacks a sufficient supply of U.S. dollars (USD) to manage its international trade effectively. This occurs when a country has to pay out more U.S. dollars for its imports than the U.S. dollars it receives from its exports. Because the U....
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https://www.investopedia.com/terms/d/dollarcostaveraging.asp
Dollar-Cost Averaging (DCA)
Dollar-Cost Averaging (DCA) What Is Dollar-Cost Averaging (DCA)? Dollar-cost averaging (DCA) is an investment strategy in which an investor divides up the total amount to be invested across periodic purchases of a target asset in an effort to reduce the impact of volatility on the overall purchase. The purchases occur ...
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https://www.investopedia.com/terms/d/dollardrain.asp
Dollar Drain
Dollar Drain What Is Dollar Drain? A dollar drain is when a country imports more goods and services from the United States than it exports back to the U.S. The net effect of spending more money importing than is received from exporting causes a net reduction in the total U.S. dollar reserves of that country. The concep...
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https://www.investopedia.com/terms/d/dollarization.asp
Dollarization
Dollarization What Is Dollarization? Dollarization is the term for when the U.S. dollar is used in addition to or instead of the domestic currency of another country. It is an example of currency substitution. Dollarization usually happens when a country’s own currency loses its usefulness as a medium of exchange, due ...
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https://www.investopedia.com/terms/d/dollarprice.asp
Dollar Price
Dollar Price What is Dollar Price? The dollar price is a phrase that refers to bond pricing. Dollar price is the amount of money an investor pays to purchase the bond. Since a bond is a loan, the amount of the bond is always the amount that an investor puts (when the bond is originated) in to purchase the interest paym...
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https://www.investopedia.com/terms/d/domestic-relations-order-dro.asp
Domestic Relations Order – DRO
Domestic Relations Order – DRO What Is a Domestic Relations Order – DRO A domestic relations order (DRO) is a court order that gives a spouse or dependent the right to receive all or a portion of the benefits of an employee’s qualified retirement plan in the event of divorce. A DRO is usually sent to a plan administrat...
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https://www.investopedia.com/terms/d/domicile.asp
Domicile
Domicile What Is a Domicile? Your domicile is the place where you maintain a permanent home. Your intent to remain in this place indefinitely makes it your domicile and makes you the place's domiciliary. Your domiciliary status subjects you to specific laws. Thus, domicile is a legal construct used to determine where y...
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https://www.investopedia.com/terms/d/domini_400.asp
MSCI KLD 400 Social Index
MSCI KLD 400 Social Index What Is the MSCI KLD 400 Social Index? The MSCI KLD 400 Social Index is a market capitalization-weighted stock index focusing on companies that maintain high environmental, social, and governance (ESG) standards. Founded in 1990, it was previously known as the Domini 400 Social Index and was n...
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https://www.investopedia.com/terms/d/donationbased-crowd-funding.asp
Donation-Based Crowdfunding
Donation-Based Crowdfunding Definition of Donation-Based Crowdfunding Donation-based crowdfunding is a way to source money for a project by asking a large number of contributors to individually donate a small amount to it. In return, the backers may receive token rewards that increase in prestige as the size of the don...
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https://www.investopedia.com/terms/d/donchianchannels.asp
Donchian Channels Definition
Donchian Channels Definition What are Donchian Channels? Donchian Channels are three lines generated by moving average calculations that comprise an indicator formed by upper and lower bands around a mid-range or median band. The upper band marks the highest price of a security over N periods while the lower band marks...
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https://www.investopedia.com/terms/d/donoradvisedfund.asp
Donor-Advised Fund
Donor-Advised Fund What Is a Donor-Advised Fund? A donor-advised fund is a private fund administered by a third party and created for the purpose of managing charitable donations on behalf of an organization, family, or individual. How a Donor-Advised Fund Works Donor-advised funds have become increasingly popular, pri...
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https://www.investopedia.com/terms/d/doomsdaycall.asp
Doomsday Call
Doomsday Call What is a Doomsday Call? A doomsday call is a provision which allows the issuer to hedge against interest rate risk by redeeming the bond (paying back the principal and accrued interest) prior to maturity. Key Takeaways A doomsday call is a provision which allows the issuer to hedge against interest rat...
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https://www.investopedia.com/terms/d/doorbuster.asp
Doorbuster
Doorbuster What Is a Doorbuster? A doorbuster is a marketing and sales strategy retailers use to get a high volume of customers into their stores during opening hours. During a doorbuster sale, a particular item or a selection of items is offered at a special discount price for a limited time. The aim is to get custome...
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https://www.investopedia.com/terms/d/dormancy-fee.asp
Dormancy Fee
Dormancy Fee What Is a Dormancy Fee? A dormancy fee was a penalty charged by a credit card issuer to a cardholder’s account for not using the card for a certain period of time. Dormancy fees, also called inactivity fees, are no longer allowed in the United States under the Credit CARD Act of 2009. However, credit car...
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https://www.investopedia.com/terms/d/dotcom-bubble.asp
Dotcom Bubble
Dotcom Bubble What Was the Dotcom Bubble? The dotcom bubble was a rapid rise in U.S. technology stock equity valuations fueled by investments in Internet-based companies during the bull market in the late 1990s. The value of equity markets grew exponentially during this period, with the technology-dominated Nasdaq inde...
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https://www.investopedia.com/terms/d/double-cycle-billing.asp
Double-Cycle Billing
Double-Cycle Billing What Is Double-Cycle Billing? Double-cycle billing is a method for calculating credit card interest in which the interest is applied to the average of the prior two months’ outstanding balance. The practice was banned by U.S. Congress in 2009 through the passage of the Credit CARD Act. Before thi...
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https://www.investopedia.com/terms/d/double-exponential-moving-average.asp
Double Exponential Moving Average (DEMA)
Double Exponential Moving Average (DEMA) What Is a Double Exponential Moving Average (DEMA)? The Double Exponential Moving Average is a technical indicator introduced by Patrick Mulloy in his January 1994 article "Smoothing Data With Faster Moving Averages" in Technical Analysis of Stocks & Commodities magazine. The pu...
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https://www.investopedia.com/terms/d/double-gold.asp
Double Gold ETF
Double Gold ETF What Is a Double Gold ETF? A double gold exchange-traded fund (ETF) tracks the value of gold and responds to movements in the same manner as other similar double-leveraged ETFs. With a double gold ETF, the spot value of gold, or a basket of gold companies, acts as the underlying for the fund. The ETF at...
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https://www.investopedia.com/terms/d/double-hedging.asp
Double Hedging
Double Hedging What Is Double Hedging? Double hedging is a trading strategy in which an investor hedges a cash market position using both a futures position and an options position. This is used when it is not effective or is impossible due to regulatory restraints to use just one derivatives market to complete a hedge...
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https://www.investopedia.com/terms/d/double-irish-with-a-dutch-sandwich.asp
Double Irish With a Dutch Sandwich
Double Irish With a Dutch Sandwich What Is the Double Irish With a Dutch Sandwich? The double Irish with a Dutch sandwich is a tax avoidance technique employed by certain large corporations, involving the use of a combination of Irish and Dutch subsidiary companies to shift profits to low or no-tax jurisdictions. The t...
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https://www.investopedia.com/terms/d/double-net-lease.asp
Double Net Lease
Double Net Lease What Is a Double Net Lease? A double net lease (also known as a 'net-net' or 'NN' lease) is a lease agreement in which the tenant is responsible for both property taxes and premiums for insuring the building. Unlike a single net lease, which only requires the tenant to pay property taxes, a double net ...
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https://www.investopedia.com/terms/d/double_taxation.asp
Double Taxation
Double Taxation What Is Double Taxation? Double taxation is a tax principle referring to income taxes paid twice on the same source of income. It can occur when income is taxed at both the corporate level and personal level. Double taxation also occurs in international trade or investment when the same income is taxed ...
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https://www.investopedia.com/terms/d/doublebarreled.asp
Double-Barreled Bond
Double-Barreled Bond What Is a Double-Barreled Bond? A double-barreled bond is a municipal bond in which the interest and principal payments are pledged by two distinct entities—the revenue from a defined project and the issuer and its taxing power. In the event that the project cash flows fall short, the issuer covers...
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https://www.investopedia.com/terms/d/doublebottom.asp
Double Bottom Definition
Double Bottom Definition What is a Double Bottom? A double bottom pattern is a technical analysis charting pattern that describes a change in trend and a momentum reversal from prior leading price action. It describes the drop of a stock or index, a rebound, another drop to the same or similar level as the original dro...
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https://www.investopedia.com/terms/d/doublediprecession.asp
Double-Dip Recession
Double-Dip Recession What Is Double-Dip Recession? A double-dip recession refers to a recession followed by a short-lived recovery, followed by another recession. For whatever reason, after the initial recession has passed the recovery stalls and the second round of recession sets in just as, or even before, the econom...
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https://www.investopedia.com/terms/d/doublegearing.asp
Double Gearing
Double Gearing What Is Double Gearing? Double gearing is when more than one company uses shared capital as a way to mitigate risk. The businesses involved in double gearing loan funds to one another, which can artificially skew the accounts of the companies, making them appear in better financial health than they are. ...
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https://www.investopedia.com/terms/d/doubleonetouch.asp
Double One-Touch Option
Double One-Touch Option What Is a Double One-Touch Option? A double one-touch is a type of exotic option which gives the holder a specified payout if the underlying asset price moves outside of a specified range at any point before expiration. The buyer negotiates the price range with an upper and lower level, called t...