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Day order
An order to buy or sell securities that automatically expires if not executed on the day it is entered.
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Dealer
Any person or company in the business of buying and selling securities for his or her own account, through a broker or otherwise.
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Debenture
An unsecured debt secured by general credit (the borrower's integrity), not by collateral. The debenture agreement is called an indenture.
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Debit balance
Debit balances are monies owed to a broker/dealer by a customer generally resulting from the customer's purchase of securities.
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Debt
Money borrowed.
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Default
Failure to make timely payments on a debt.
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Deficit
An excess of liabilities over assets, losses over profits, or expenditures over income.
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Depository Trust Company (DTC)
The world's largest central securities depository. The DTC settles trades in municipal, mortgage-backed, and corporate securities.
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Depreciation
A decrease in the value of an asset.
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Dilution
When company shares increase in quantity, causing the value of each share to decrease.
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Director
Person elected by shareholders to serve on the board of directors.
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Discount
How much a security sells below its par value.
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Disability insurance
An insurance product that only pays benefits if the policyholder, as a result of illness or injury, can no longer work.
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Discount rate
The interest rate that the Federal Reserve charges banks and broker/dealers to borrow money.
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Discretionary account
An account empowering a broker or adviser to buy and sell without the client's prior knowledge and consent.
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Diversification
A risk-reducing investment strategy that combines different securities and assets (stocks, bonds, cash, etc.) unlikely to move, price-wise, in the same direction at the same time.
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Dividend
Distributions to stockholder of cash or stock declared by the company's board of directors.
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Dollar-cost-averaging
A strategy of buying securities at regular intervals with a fixed dollar amount per interval.
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Dow Jones industrial average
The best-known U.S. index of stocks containing 30 companies that trade on the NYSE.
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Downgrade
A negative change in buy/sell/hold ratings for a security.
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Down tick
A transaction executed at a price lower than the preceding transaction in that secutiry or a new quote registered at a lower price than the preceding quote in that security.