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

Category: Finance Dictionary

DETERGENCY

How well a detergent cleans and adheres to stains to remove it.

DEVELOPMENT

1. using scientific knowledge to meet goals. 2. to extend a theory or invention. 3. changes in economics and social trends in the culuture and environment. 4. adding improvements to land.

DICHOTOMY

Taking one thing and making it two. These parts are often opposing.

DIFFERENTIAL COSTING

A cost that changes with every alternative. It helps in decision making. Refer to marginal cost.

DIFFUSION PROCESS

A continuous, STOCHASTIC PROCESS where the market variable (e.g., a COMMON STOCK price or FOREIGN EXCHANGE rate) exists in continuous time and its probability density function is continuous; the variable changes on

DIGITAL FINGERPRINT

1. the coded binary digits that identify a file. It detects tampering and acts as a digital fingerprint. It also blocks employees from getting to illicit materials online on the firm’s computer.

DIVERSIFICATION

A spreading or dispersion of RISK, achievable by combining ASSETS or exposures that are not CORRELATED with one another; the process of diversification helps minimize concentrations of exposure and creates a more

DRAGON

A public BOND issued simultaneously in various Asian centers by a nonAsian company, denominated in a local Asian currency or US dollars. The dragon is effectively a regional form of the GLOBAL

EFFECTIVE BUYING INCOME

The amount of money a taxpayer has on income from wages, interest, and other income minus what is taken out be taxes and other deductions such as FICA.

EFFLUENT STANDARD

Environment-related government agency restriction on quantities of waste water discharges, rates of discharge, and concentrations of waste material.

ELBOW

An area of the YIELD CURVE that is deemed to be financially attractive (i.e., CHEAP) and where profits can be generated by simply ROLLING DOWN THE CURVE.

ELECTRONIC

Something employing low-voltage current and solid state integrated circuits or components. Typically a device or technology for transmission and/or processing of analog or digital data. See also electronics.

ELECTRONIC DOCUMENT

Text, graphics, or spreadsheets generated by computer on any media or device for any electronic processing, including EDI. Electronically stored documents follow no format or readability requirements except when retrieve for human-use.

ELECTRONIC RECORD

A collection of data, managed and processed to become information. It is collection by electronic processes. Known also as machine readable record.

ELEPHANTS

Slang for investment plans with an extraordinary number of volume trades. An example is an employee contribution pension plan. A catch phrase for various similar plans

ELIGIBLE RESERVES

Total amount of money on-hand plus the amount of cash a bank has in a local Federal Reserve Bank. Total of hard Cash available to a US bank.

EMBRYOTOXIN

Harmful, poisonous agent or substance. Examples are mercury compounds, heavy metals, and radiation. These inhibit embryo development, retarding growth, or even terminating life.

EMOTIONAL CAPITAL

Motivating people to buy a brand or a firm’s products based on peripheral value or goodwill obtain by a company. An example is buying a product where a fairly high percentage of

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