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

Category: Finance Dictionary

DELIVERABLE ASSET

The specific type and quality of a financial or physical ASSET that can be delivered under the terms of an EXCHANGETRADED DERIVATIVE. Many contracts provide the selling party with the ability to

DEMERIT GOOD

A good that is not good or damaged. It can be harmful mentally, physically, or morally. Taxes are placed on them to reduce use. Sin tax is the term for that tax.

DEPENDABILITY

The amount an item can do its job when randomly chosen in a period of item.

DESIGN PARAMETERS

Aspects of a component that are needed to make something. It decides cost, design, and risk. Refer to design specification.

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.

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