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

Category: D

DILUTION

The act of reducing the proportion of ownership held by current investors through issuance of new shares of COMMON STOCK (or through the exercise of outstanding stock OPTIONS or the conversion of

DISCOUNTED CASH FLOW

A financial measurement technique used to evaluate the worth of capital investments, ACQUISITIONS, or other projects involving cash inflows and outflows over time. Net CASH FLOWS are discounted at a company

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 REPORT

A statement that has policy information that is needed by the insurere or agent. It is used as the top page of the policy.

DATAFLOW

The path data takes in a device, network, or organization. How it moves from source to repository or user.

DAUGHTERBOARD

A circuit board that is in the first slot on a motherboard. It is the main processor and memory.

DAYPART

The division of time in radio and tv. A 24 hour day is broken up into sectins. The radio times are as follows:The morning drive is 6am to 10am. Daytime is 10am

DE SON TORT TRUSTEE

A party not involved in a trust but takes on the acts of the acts of the trustee. They are a constructive trusee and are responsible for what they do. It is

DEALER INCENTIVE

When a car manufacturer offers dealers a cost reduction to get them to buy from the factory. It is used on slowmoving stock after a goal is met.

DEBT DEFLATION

The theory of Irving Fisher that a depressin is caused by overconsumption, overspending, and underinvestment destablizes the debt and deflation. Debt increases lowering prices causing the value of debt causing financial distress.

DECLARED VALUE

A shipment’s value for imports. It is used for resale and is declared by the owner and shipper. AKA entry value. Refer to declared value for carriage and declared value for customs.

DECOUPLE

When market prices for shares and bonds go in opposite trends. If low confidence happens than shares are dumped and bonds are better. It is the same for deflation to save income.

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