Your Free Online Legal Dictionary • Featuring Black’s Law Dictionary, 2nd Ed.

Category: D

DIRECT CREDIT RISK

The RISK of loss due to DEFAULT by a COUNTERPARTY on a direct extension of credit, such as a LOAN or DEPOSIT. Default on an unsecured direct credit risk transaction always results

DISCRETIONARY ACCOUNT

A customer brokerage account where the client gives the BROKER authorization to act on his/her behalf in buying and selling securities. The client may limit the discretion granted through time and/or price

DOUBLING OPTION

A right granted by investors to an issuer of BONDS that allows the issuer to double the amount of the SINKING FUND provision in order to accelerate repayment and ultimate redemption.

DWARF

A15 year MORTGAGEBACKED SECURITY issued by the FEDERAL NATIONAL MORTGAGE ASSOCIATION. See also GNOME, MIDGET.

DAILY TRADING LIMIT

The price range of a commodity or contract that chan safely be handled for business. Once reached no more trading happens until the next session. AKA fluctuation price or price limit.

DATA DREDGING

Fishing for data that will cause a statisical bias. The information is true on a small scale but not generally accurate for a larger data set. It can be an accident or

DATAGRAM

A packet of data with a source or destination information that is needed for routing. It travels from source to the destination on a packet switched network. This is done independent of

DAVIS-BACON ACT

A federal law started that to create minimum wage on public work projects. It is in the contract paying local wages and benefits based on similar projects. It was started by James

DEAD CAT BOUNCE

A wall street term for brief recovery in the price of an unprofitable stock.

DEALER LOCATER

A gift for incentive that a retailer gets to get them to buy more. Dealer programs or premiums are an example.

DEBT DISCHARGE

Releasing liabilty for unsecured debt due to bankruptcy order or creditor. The debt is unenforceable. Anything secured with collateral are enforced through liens.

DECLARED VALUE FOR CARRIAGE

A shipment’s value used to decide charges and limits the carriers liability. It is the cost price and is lower than the declared value for customs.

DECOUPLING STOCK

Inventory shared by two operations to prevent breakdown or unevenness for machines. It reduces output synchronization. AKA intermediate stock.

DEFECTIVE PRODUCT

A commercial good that is not fit for the use, dangerous, or has inadequate instructions. Refer to defect.

DEFICIT FINANCING

1. A planned expenditure the government has to put more money without taxing. It is supposed to increase business activity and additional revenue for shortfall. AKA defecit spending. 2. Financing debt to

DEFRAGMENTATION

The act of rearranging files on the hard disk to make faster data access.The space left when this happens is filled by new files. If its too big a fragment is left

DEIONIZATION

Taking atoms from liquid. Water is passed through two resins to get rid of positive ions and other negative ones.

DELETING

Erasing data from a storage medium. The space left is used.

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