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

Category: D

DIFFUSION AND AMORTIZATION EFFECT

A concept indicating that the maximum CREDIT RISK of an INTEREST RATE SWAP occurs onethird to halfway through the life of a transaction. This occurs because simulated future INTEREST RATES used in

DIRECT LOSS

In INSURANCE, a loss where the covered PERIL is the PROXIMATE CAUSE of damage. PROPERTY AND CASUALTY INSURANCE policies often limit protection to direct loss rather than direct loss and CONSEQUENTIAL LOSS.

DISENFRANCHISE

The process of removing voting rights from a class of COMMON STOCK so that investors in that class are only entitled to RENT RIGHTS. See also DISENFRANCHISING TRANSACTION.

DOWN AND IN OPTION

A COMPLEX OPTION that creates a standard EUROPEAN OPTION if the price of the UNDERLYING market reference declines through a predefined BARRIER. See also BARRIER OPTION, DOWN AND OUT OPTION, KNOCKIN OPTION,

DAISY CHAIN

An illegal TRADING scheme where a group of manipulators trade a company

DATA FLOW DIAGRAM

A diagram that shows how data is transferred or processed. It shows interactions and the output.

DATE DRAFT

A bill that is payable on a date without need for the payer to accept it.

DAX 100

The top 100 stocks price index on the Frankfurt stock exchange.

DAYS DATE

The date after a date by a set period. A bank must honor the draft against the letter of credit.

DEAD LOAD

How much a structure weighs. Refer to live load.

DEBT FACTORING

Selling invoices to a third party. They must process the invoices and get loans based on payments of the invoices.

DECLINE CURVE

The way of setting up productin yields from oil or gas wells. It changes because of pressure, depletion, or maintenance time. An exponential hyperbolic or harmonic Arps equation is used.

DEDICATED

Anything made for a purpose or used to do a specific function.

DEGRADATION FACTOR

The amount multiplied by mean time between failures of a part to get the operational MTBF.

Topic Archives:

Disclaimer

This site contains general legal information but does not constitute professional legal advice for your particular situation. The Law Dictionary is not a law firm, and this page does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.