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Business Definitions

Business Definitions
Definitions A
Definitions B
Definitions C
Definitions D
Definitions E
Definitions F
Definitions G
Definitions H
Definitions I
Definitions J,K
Definitions L
Definitions M
Definitions N
Definitions O
Definitions P,Q
Definitions R
Definitions S
Definitions T
Definitions U,V
Definitions W,X
Definitions Y,Z


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Business Terms and Definitions (D)

Day Trader: An investor who buys and sells securities in a very short time, usually the same day. Day trading is usually very risky because net profits are small, if any, because of the commissions paid on both the buy and sell sides of the account.

Dealer: A principal, an individual or a brokerage firm who buys and sells securities on his own account, and unlike a broker, may make a market in a particular security, charging a markup or markdown instead of a commission.

Debt: The amount of money or property that is owed by one party to another. Debt is brought to life through the granting of credit, in one form or another.

Default: The failure to pay off debt on time or when monthly installments are past due.

Defense Industry: A wide ranging industry based on the production of military hardware and supplies such as aircraft, ships, submarines, tanks, guns, bombs, bullets, uniforms, and other low and high tech equipment.

Deferred Compensation Plan: A contractual agreement made between an employer and employee to allow the employer to hold a portion of the employee's pay to be distributed into an account, 401k, mutual fund, SEP, Bonds, or other investment vehicles for retirement, disability, or other purposes.

Depreciation: A loss in the value of real estate, gold or other precious metals, currency, machinery, or other equipment due to economic changes, wear and tear, or a relative decline in value over time.

Depression: An extended period in the cycle of business when the economy goes through a sharp drop in prices, high rates of unemployment, a higher than normal reduction in purchasing power, and an increase in bankruptcies and foreclosures.

Diversification: The act of managing risk based on a strategy of investing in a variety of investment vehicles, stocks, bonds, mutual funds, real estate, and other instruments.

Dividends: A distribution of profits to shareholders in the form of stock, cash, or company products. Dividends are normally issued on a quarterly basis after the deduction of income tax, but the distributions must first be approved by the board of directors.

Dow Jones Industrial Average: A compilation of the daily closing prices of the securities of 30 of the largest American industrial companies as quoted on the New York Stock Exchange. Named after Charles Dow, the Dow Jones Averages are the most widely quoted in the United States.

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