Down-and-In option Also called knock in option. Barrier options that come into being owing to asset price touching a predetermined barrier price. … [Read more...]
Down-and-Out Option
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Down-and-Out Option Also called knock out option. Barrier options that cease to exist owing to asset price touching a predetermined barrier price. … [Read more...]
Downgrade
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Downgrade Unfavorable or downward change in the ratings given for a rated security such as stock. Can also be called a negative change. … [Read more...]
Draft
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Draft Written order that is not conventional, that has the signature of the exporter or other individual and is addressed to the individual importing the asset. The order instructs the importer or his agent to make payment of a specified amount, at a given date or on demand. … [Read more...]
Driver
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Driver Factors affecting the price of a company’s stock or its earnings. Some of these may be specific to the company while others are common drivers. … [Read more...]
Drop
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Drop Term used in dollar roll transactions. Signifies the variance in the selling price of an MBS (mortgage backed pass through) and the predetermined price that is required to be paid for its re-purchase at a future date. … [Read more...]
Drop Lock
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Drop Lock A prearranged condition that applies on preferred stock or a variable rate note whereby when its rate of interest rate declines to a specified level, the interest becomes fixed. … [Read more...]
Dual Syndicate Equity Offering
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Dual Syndicate Equity Offering Worldwide equity offering wherein two tranches are offered for domestic and overseas buyers. A different lead manager handles each tranche. … [Read more...]
Dual-Currency Issues
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Dual-Currency Issues Eurobond issues that carry coupon or yield interest in currency A but make principal repayments in currency B. … [Read more...]
Due Bill
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Due Bill Term used in context of the bill market. Financial security/ instrument that is evidence of a seller’s obligation to make delivery of securities sold to a buyer. … [Read more...]
Dupont System of Financial Control
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Dupont System of Financial Control Uses the fact pertaining to return on assets or ROA that asset turnover and profit margin can be used to define the ROA of a business. … [Read more...]
Durables
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Durables Also termed durable goods. Consumer goods that are not required to be bought frequently. For example, appliances, furniture, consumer electronics etc. … [Read more...]
Duration
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Duration Commonly used measure of the sensitivity of asset price or portfolio when there is a fluctuation in rate of interest. … [Read more...]
Dutch Auction
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Dutch Auction Technique used with Treasury auctions wherein the minimum price that is required to sell the total offering turns into the actual price at which sale of all offered securities takes place. … [Read more...]
Dynamic Asset Allocation
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Dynamic Asset Allocation Strategy used in asset allocation wherein the asset mix is mechanically determined and modified in tune with variances in prevailing market conditions, most often to protect the portfolio. … [Read more...]
Dynamic Hedging
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Dynamic Hedging Rebalancing or reorganizing existing positions in a hedge to stay in line with changing market conditions. Often carried out via a synthetic put option to insulate the portfolio against loss. … [Read more...]
Dynamic Momentum Index
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Dynamic Momentum Index Technical analysis indicator that identifies conditions wherein a given asset is overbought and oversold. Similar to the relative strength index (RSI). The DMI uses different stages in time as changes occur in volatility. … [Read more...]
