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Superglossary - Finance Category: Economy and Finance > Finance Date & country: 16/12/2013, USA Words: 5410

Debt Limit
Amplification of the return earned on equity when an investment or firm is financed partially with b

Debt Limitation
The maximum amount that a municipality can borrow.

Debt Market
A bond covenant that restricts the firm's ability to incur additional indebtedness in some way.

Debt Ratio
The market for trading debt instruments.

Debt Relief
Total debt divided by total assets.

Debt Retirement
Reducing the principal and/or interest payments on Less developed country loans.

Debt Securities
The complete repayment of debt. See

Debt Service
IOUs created through loan-type transactions-commercial paper, bank CDs, bills, bonds, and other inst

Debt Service Coverage
Interest payment plus repayments of principal to creditors (retirement of debt).

Debt Service Parity Approach
The ratio of cash flow available to the borrower to the annual interest and principal payments on a

Debt Swap
Payment alternatives that provide the firm with the exact same schedule of after-tax debt payments (

Debt To Equity Ratio
A set of transactions in which a firm buys a country's dollar bank debt at a discount and swaps this

Debt To Tangible Equity Ratio
The ratio of total debt to owners' equity, used as a measure of leverage and ability to repay obliga

Debt-Equity Ratio
The ratio of total debt to tangible equity, used as a measure of leverage and solvency. Typical valu

Debt-Service Coverage Ratio
New debt obtained by a firm during the Chapter 11 bankruptcy process.

Debtor
Indicator of financial leverage. Compares assets provided by creditors to assets provided by shareho

Debtor In Possession
Borrower of money.

Debtor-In-Possession Financing
A firm that continues to operate under the Chapter 11 bankruptcy process.

Decile Rank
Earnings before interest and income taxes, divided by interest expense plus the quantity of principa

Decimal Trading
Performance over time, rated on a scale of 1-10. 1 indicates that a mutual fund's return is in the t

Decision Tree
The quotation and trading of stock prices in decimals, as opposed to the quotation of stock prices i

Declaration Date
Schematic way of representing alternative sequential decisions and the possible outcomes from these

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

Dedicated Capital
The Board of Directors motion to authorize dividend payments.

Dedicating A Portfolio
Total par value (number of shares issued, multiplied by the par value of each share). Also called de

Dedication Strategy
Related

Deduction
Refers to multiperiod cash-flow matching.

Deductive Reasoning
An expense that is allowable as a reduction of gross taxable income by the IRS e.g., charity donatio

Deep In-Out Of The Money
Using known fact to draw a conclusion about a specific situation.

Deep-Discount Bond
A call option with an exercise price substantially below the underlying stock's market price (deep i

Default
A bond issued with a very low coupon or no coupon that sell at a price far below par value. A bond t

Default Premium
Failure to make timely payment of interest or principal on a debt security or to otherwise comply wi

Default Risk
A differential in promised yield that compensates the investor for the risk inherent in purchasing a

Defeasance
The risk that an issuer of a bond may be unable to make timely principal and interest payments. Also

Defensive Securities
The setting aside by a borrower of cash or bonds sufficient to service the borrower's debt. Both the

Deferred Account
Low-risk stocks or bonds that will provide a predictable and safe return on an investor's money.

Deferred Annuities
A type of account that delays taxes on that account until some later date.

Deferred Call
Tax-advantaged life insurance products. Deferred annuities offer deferral of taxes with the option o

Deferred Charge
A provision that prohibits the company from calling the bond before a certain date. During this peri

Deferred Compensation
An expenditure treated as an asset that carries forward until it becomes pertinent to the business a

Deferred Equity
An amount that has been earned but is not actually paid until a later date, typically through a paym

Deferred Futures
A common term for convertible bonds, which recognizes their equity component and the expectation tha

Deferred Interest Bond
The most distant months of a futures contract.

Deferred Nominal Life Annuity
A bond that pays interest at a later date, usually in one lump sum, effectively reinvesting interest

Deferred Payment Annuity
A monthly fixed-dollar payment beginning at retirement age. It is nominal because the payment is fix

Deferred Revenue
An annuity that stipulates payments be made to the annuitant at a later date, such as when the annui

Deferred Taxes
A liability that arises when a customer pays for goods or services before delivery is complete; for

Deficiency Letter
A non-cash expense that provides a source of free cash flow. Amount allocated during the period to c

Deficit
Notification from the SEC to a prospective issuer of securities that revisions or additions need to

Deficit Spending
An excess of liabilities over assets, of losses over profits, or of expenditure over income.

Defined Asset Fund
When government spending overwhelms government revenue resulting in government borrowing. See

Defined Benefit Plan
A unit investment trust consisting of a fixed portfolio of securities, including blue chips, REITs,

Defined Contribution Plan
A pension plan obliging the sponsor to make specified dollar payments to qualifying employees. The p

Deflation
A pension plan whoae sponsor is responsible only for making specified contributions into the plan on

Deflator
Decline in the prices of goods and services. Antithesis of inflation.

Delayed Issuance Pool
A statistical factor used to convert current dollar purchasing power into inflation-adjusted purchas

Delayed Opening
Refers to mortgage backed securities (MBS) that at the time of issuance were collateralized by seaso

Delayed Settlement-Delivery
Postponement of the start of trading in a stock until correction of a gross imbalance in buy and sel

Delinquency
In the context of general equities, transaction in which a contract is settled in excess of five ful

Delisting
Failure to make a payment on a debt or obligation by the specified due date.

Deliver
Removal of a company's security from listing on an exchange because the firm has not abided by speci

Deliverable Bills
The sale of a futures or forward contract may require the seller to deliver the commodity.

Deliverable Instrument
The Treasury bills that fulfill a set of guidelines set forth by the exchange on which the bills are

Delivery
The asset in a forward contract that will be delivered in the future at an agreed-upon price.

Delivery Date
The tender and receipt of an actual commodity or financial instrument in settlement of a futures con

Delivery Notice
Date by which a seller must fulfill the obligations of a forward or futures contract.

Delivery Options
The written notice given by the seller of its intention to make delivery against an open, short futu

Delivery Points
The options available to the seller of an interest rate futures contract, including the quality opti

Delivery Price
Locaations designated by futures exchanges at which the financial instrument or commodity covered by

Delivery Versus Payment
The price fixed by the clearinghouse at which deliveries on futures are invoiced; also the price at

Delta
A transaction in which the buyer's payment for securities is due at the time of delivery (usually to

Delta Hedge
The ratio of the change in price of a call option to the change in price of the underlying stock. Al

Delta Neutral
A dynamic hedging strategy using options that calls for constant adjustment of the number of options

Demand Deposits
Describes value of a portfolio not affected by changes in the value of the asset on which the option

Demand Line Of Credit
Checking accounts that pay no interest and from which funds can be withdrawn upon demand.

Demand Loan
A bank line of credit that enables a customer to borrow on a daily or on-demand basis.

Demand Master Notes
A loan which can be called by the lender at any time and carries no set maturity date.

Demand Shock
Short-term securities that are repayable immediately upon the holder's demand.

Demand-Pull Inflation
An event that affects the demand for goods and services in an economy.

Denomination
A theory of inflation or price increases resulting from so-called excess demand. Related

Department
Corresponds to the face value of currency units, coins, and securities.

Dependent
An entity defined for reporting purposes.

Depository Preferred
The 1980 federal legislation that ended the regulation of the banking industry.

Depository Transfer Check (DTC)
Device enabling an issuer to circumvent an arbitrary corporate limit on the number of preferred shar

Depository Trust Company (DTC)
Check made out directly by a local bank to a particular firm or person.

Depreciate
DTC is a user-owned securities depository that accepts deposits of eligible securities for custody,

Depreciated Cost
To allocate the purchase cost of an asset over its life.

Depreciation
In terms of economics

Depreciation
The recognition of part of an asset's cost as an expense during each year of its useful life. There

Depreciation Tax Shield
A non-cash expense that provides a source of free cash flow. Amount allocated during the period to a

Depressed Market
The value of the tax write-off on depreciation of plant and equipment.

Depressed Price
Market in which supply overwhelms demand, leading to weak and lower prices.

Depression
In the context of stocks, stock whose market price is low in comparison to stocks in its sector.

Deregulation
Period when excess aggregate supply overwhelms aggregate demand, resulting in falling prices, unempl

Derivative Instruments
The reduction of government's role in controlling markets, which lead to freer markets, and presumab

Derivative Markets
Contracts such as options and futures whose price is derived from the price of an underlying financi

Derivative Security
Markets for derivative instruments.

Descending Tops
A financial security such as an option or future whose value is derived in part from the value and c

Desk
Computerized order entry system that allows orders to buy or sell large baskets of stock to be trans

Detachable Warrant
The New York Federal Reserve Bank's trading desk (or securities department) where all transactions o