Financial Terms and Definitions » D

Double Auction Market

ashivapu — Thu, 04 Mar 2010 00:11:07 +0000

A system in which buyers enter competitive bidders and sellers enter competitive offers simultaneously, as opposed to the over-the-counter market, where trades are negotiated (NYSE and AMEX). Also called auction market.

A double auction market can also be carried out by open outcry, in which buyers and sellers call out prices that they are willing to buy and sell at, and a match is made if a buyer and seller call out the same price.

Double auction markets usually feature a large number of buyers and sellers, and thus participants tend to incur lower transaction costs than in the over-the-counter market.

Dividend Per Share

ashivapu — Tue, 08 Dec 2009 19:44:41 +0000

The amount of dividend that a stockholder will receive for each share of stock held. It can be calculated by taking the total amount of dividends paid and dividing it by the total shares outstanding. Also referred to as DPS.

DPS = Total Dividends Paid/Total Shares Outstanding

If a company issues a $10 million dividend and has 100 million shares, the dividend per share is 10 cents ($10 million divided by 100 million shares).

Debt

ashivapu — Sat, 03 Oct 2009 23:37:22 +0000

Debt is any money or capital a company owes to other parties. Related posts:Debt/Equity Ratio Escrow Leverage Related posts:

Dividend

ashivapu — Sat, 03 Oct 2009 23:33:11 +0000

Dividends are a distribution of a portion of a company’s earnings, which is usually decided by the board of directors. Dividends are generally paid on a timely schedule, and require shareholders to be invested in the stock for a certain time period. Related posts:Common Stock Dividend Per Share Preferred Stock Related posts:

Depreciation

ashivapu — Sat, 03 Oct 2009 22:42:05 +0000

The decrease in value of an asset based on time, wear and tear, decay, and/or other declining factors. Related posts:Appreciation Total return swap Gap Related posts:

Debt/Equity Ratio

ashivapu — Sat, 03 Oct 2009 22:32:03 +0000

This ratio is used to measure a company’s financial leverage. It shows what proportion of equity and debt a company uses to finance its assets. Debt/Equity Ration = Total Liabilities/Shareholders Equity A high debt/equity ratio usually means the company is financing a large amount of their asset by accumulating debt. Related posts:Current Ratio Equity P/E [...] Related posts:

Dead Cat Bounce

ashivapu — Sat, 03 Oct 2009 21:21:08 +0000

Usually referred to in technical analysis, a dead cat bounce describes when a stock in downtrend makes a mini bounce higher before it continues its decline. Related posts:Support Fundamental Analysis Resistance Related posts:

Deflation

ashivapu — Fri, 02 Oct 2009 22:00:00 +0000

A decrease in the general price level of goods and services. The opposite of inflation. Related posts:Inflation Expansion Consumer Price Index (CPI) Related posts:

Depression

ashivapu — Fri, 02 Oct 2009 21:48:45 +0000

A depression is a sustained, long downturn in one or more economies. It is more severe than a recession, which is seen as a normal downturn in the business cycle.

A depression is normally characterized by abnormal increases in unemployment, restriction of credit, shrinking output and investment, numerous bankruptcies, reduced amounts of trade and commerce, as well as highly volatile relative currency value fluctuations, mostly devaluations. Price deflation or hyperinflation are also common elements of a depression.

No related posts.

Diversification

ashivapu — Fri, 02 Oct 2009 21:28:30 +0000

The process of creating a portfolio of unrelated stocks to spread exposure and decrease risk. Diversification allows you avoid drastic losses if one sector or market struggles because you have holdings in other sectors as well.

The Wild Investor: 2 Step Plan To Recession Proof Your Portfolio.