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

Category: D

DIRECTOR

An individual acting as AGENT of the shareholders of a company. A director is responsible, along with other members of the BOARD OF DIRECTORS, for overseeing the activities of the executive management

DOLLAR ROLL

A financial transaction involving the sale, and future repurchase, of MORTGAGEBACKED SECURITIES for cash. Through the exchange the selling party effectively borrows money from the purchasing party on a collateralized basis for

DROPDOWN

A clause in a REINSURANCE contract that requires the REINSURER to provide coverage to an underlying INSURED if the INSURER cannot fulfill its obligations under the policy CEDED. A dropdown is most

DATA SCREENING

Inspecting data to make sure its correct before analysis. It can mean checking raw data or looking at outlier and missing data.

DATE OF RECORD

The date on or before a stockholder has to own shares to get their dividend. Any shares sold after this date are exdividend shares.

DAYBOOK

When data is entered on the day it occurs to be posted later in the ledgers.

DE FACTO DIRECTOR

A party that is not a de jure director but performs their duties. They are a director in law.A director that is not technically a director. They have the rights of the

DEADWEIGHT LOSS

When inefficiency is in the market because of demand and surlus issues. It has a negative impact on society. A triangle is the diagram used to show this demand curve, supply curve,

DEBIT NOTE

A letter a seller gives to show amount owed. It is a debit note. AKA debit memo.

DEBT SECURITY

A debt instrument that is issued with a repayment promise on a date at a specific interest rate.

DECLINING MARKET

The last part of market development with declining revenues due to market saturation, smaller market size, or a new product.

DEED IN LIEU OF FORECLOSURE

Transfering ownership from a borrower who is in default to the lender of the mortgage. It is done to prevent expenses with foreclosure.

DEFINITIVE SECURITY

A DEBT or EQUITY security that is issued in the form of a physical certificate rather than as a dematerialized, electronic computer entry. See also BOOKENTRY SECURITY, SCRIP.

DEGREE DAY SWAP

When cash flow is exchanged based difference between actual and negotiated degree days in a period of time.

DELAYED CALL BOND

A bond not called for years and continues to generate income. Refer to callable bond.

DEMISING WALL

The boundary between the tenant and the next tenant. AKA demising partition or party wall.

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