The Law Dictionary

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

Category: D

DEFERRED INCOME

1. income paid after the time it was earned. 2. income recorded or gotten before it is earned and shows only when it matches when it was earned.

DEFICIENCY AGREEMENT

When a project sponsor makes up for short fall caused by insufficient working capital or cash inflows. AKA make up arrangement.

DEGREE DAY

A unit for energy demand estimation. It is used in heating or cooling. Indoor temperature is 65 fahrenheit. For one degree increase or decrease from the outside one heat or cool degree

DELAWARE CORPORATION

Corporations registered in Delaware. That sate has flexible laws about interest and corporations.

DELIVERABLE

A report done when a contract demands it. This term also applies to individual items.

DELIVERY MONTH

The month when a futures contract matures and is settled with cash payment.

DELTA HEDGE

The process of reducing or neutralizing the exposure of an OPTION to the direction of the market. Delta HEDGING is accomplished by establishing a DELTAequivalent LONG POSITION or SHORT POSITION in the

DEMAND LETTER

A formal letter an attorney sends to the client for payment or action. It is not commonly needed to file a lawsuit. It says the action needed, why it’s needed, how to

DEMARKETING

When it is discouraged to demand a product from a firm that can’t get the quantity needed or they don’t want to supply a region that would have little profit. Higher prices

DEMOGRAPHICS

Factors that show a target group in a market. Refer to psychographics.

DENK

Dual Employed No Kids. Married couples that are employed but have no kids. AKA Dink. Refer to DEWK.

DEPENDENT FAILURE

A malfunction of assembly due to a component. Refer to independent failure.

DEPOSIT RATE

The interest paid to a depository institution for cash deposits.

DEPRECIATION RATE

The percent an asset depreciates by any method. It divided deprecitation cost by years of use of lifetime.

DERIVATIVE PRODUCT COMPANY (DPC)

A highly rated, BANKRUPTCYremote SPECIAL PURPOSE ENTITY used by certain financial institutions to undertake DERIVATIVE transactions with COUNTERPARTIES demanding strong CREDIT RATINGS. Through design mechanics based on minimum CAPITAL, COLLATERAL, HEDGING, and

DESCRIPTIVE STATEMENT

A statement for an account by a bank on electronic banking. It is required by regulation e of the SEC.

DESIGN SPECIFICATION

A characteristic that has to be met for something to function. Refer to design parameters and performance specification.

DESTINATION CONTRACT

Contract for sale where a seller takes risk on until goods are delivered. Refer to shipment contract.

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