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

Category: Finance Dictionary

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.

EFFECTIVE YIELD

The actual INTEREST RATE an investor earns on an investment after taking into account fees, actual price paid, and AMORTIZATION of PRINCIPAL or ACCRETION OF DISCOUNT. See also EFFECTIVE RATE.

EIA NATURAL GAS REPORT

Weekly report. Concerns US natural gas reserves stored underground. Energy Information Administration (EAI) issues the report. Used to predict natural gas price shifts.

ELECTIVE BENEFITS

Chosen coverage or payments as a part of insurance or employment. Choice can also be for how the benefits are applied when use of the benefit occurs. Payments can be lump sum

ELECTRONIC HUB

Commercial website that provides coordination and synchronization services to electronic commerce (ecommerce) its users or partners.

ELECTRONIC RETAILING

Retailing done electronically: purchases, including grocery and supermarket items. The execution of commerce specifically for retail.

ELEVATOR COLLISION COVERAGE

Elevator collision insurance. This coverage is included in business liability insurance policies to covers damage to elevators. Covers personal possessions and the building that houses the elevator, as well as any other

ELIGIBLE SECURITIES

Securities that BANKS are allowed to purchase, hold, and trade on a direct basis, including GOVERNMENT BONDS and AGENCY SECURITIES. Those ruled ineligible under standing regulations must often be traded through a

EMERGENCY

Situation requiring immediate attention and remedial action. Involves injury, loss of life, damage to the property, or catastrophic interference with the normal activities. A sudden, unexpected, or impending situation.

EMPHYSEMA

A lung disease that swells and destroys the lung tissue. Certain substances such as asbestos are known causes.

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