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

Category: D

DEROGATORY INFORMATION

Information on credit reports lenders used to refuse a loan legally. It can lower the score and limit credit availability.

DETERIORATION

Downgrading effectiveness due to bad packaging or abnormal storage.

DEVELOPMENTAL LICENSE

An agreement when one party lets another evaluate it for a time. If things go well than formal licensing is offered.

DICTIONARY

A reference for words arranged alphabetically. It shows spelling and meaning as well as origin. Refer to thesaurus.

DIFFERENTIAL PRICING

The way a product can have different prices based on the customer, quantity, delivery, and terms. AKA discriminatory pricing or multiple pricing.

DIRECTIONAL RISK

The RISK of loss arising from exposure to the direction of a reference ASSET or market. An investor holding a LONG POSITION experiences a loss if market prices fall and a gain

DIVIDED COVER

INSURANCE contracts on the same property and PERIL purchased by the INSURED from two or more INSURERS. The total SETTLEMENT will never exceed the amount of the loss, and will be divided

DROP LOCK NOTE

A FLOATING RATE NOTE or BOND that converts into a fixed COUPON obligation when a reference INTEREST RATE is breached on the downside. See also DROP LOCK.

DATA RECOVERY

Restoring the data stored in lost files. The space is not overwritten leaving it recoverable by the undelete program. Software is written to do this and is needed for recovery. AKA data

DAY TRADING

he process of actively buying and selling securities throughout the day but holding little or no open position at market close; the practice was initially popularized by the advent of ELEC- TRONIC

DE FACTO CORPORATION

A firm that isn’t de jure corporation. It can be treated as such due to promoters that attempt to incorporate.

DEADWEIGHT DEBT

DEBT of a company that is used to fund operat- ing losses or service other debt rather than support productive invest- ment or ACQUISITIONS, or create incremental ENTERPRISE VALUE. Although the debt

DEBIT DATE

The date when money from an account is taken based on a debit. It is done when funds are there on the same day every month.

DEBT RESTRUCTURING FRAUD

When a company files for bankruptcy hiding its assets. The debt is reduced assuming that they have less to pay than they really do.

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