|
Delayed
Delivery
Delivery of securities later than the settlement date of the sell transaction.
Delayed delivery is acceptable only when there is a contract agreed upon
by both parties to the trade — known as a "seller's option."
See: Delivery
Date; Seller's
Option Contract; Settlement
Date
Delayed
Opening
The postponement of the start of trading in a stock beyond the normal
opening because exchange officials judge that market conditions justify
such a delay. Such market conditions include a great influx (or an extreme
imbalance) in buy and sell orders, or pending corporate news that requires
time for dissemination.
See: Suspended
Trading; Trading
Halt
Delisted
Security
Elimination of a corporation's security from an exchange because the security
no longer meets specific financial ratios, sales levels, or other qualifications.
See: Listing
Requirements
Delivery
The physical exchange of money and securities on the brokerage transaction's
settlement date. Industry standards stipulate that securities be delivered
in acceptable condition - known as "good deliverable form."
See: Delivery
Date; Good
Delivery Of Securities
Delivery
Date
Currently, the third business day following a "regular way"
transaction on the New York Stock Exchange in which money and securities
need to be exchanged.
Moreover,
in regard to other types of securities, the term regular way delivery
does not necessarily mean three business days following the transaction.
Government securities, for instance, have a regular way delivery on the
next business day following the transaction.
See: Delayed
Delivery; Regular
Way Delivery (Settlement); Seller's
Option Contract
Delivery
Notice
Notification from the seller to the buyer of the date when the actual
commodity in a futures contract will be delivered.
See: Commodities
Delivery
Versus Payment (DVP)
Securities industry procedure whereby the sold securities are delivered
to the buyer's bank in exchange for payment. From the seller's perspective,
it is called "receive versus payment." Institutional customers
customarily use delivery versus payment to make settlement on transactions.
It is also referred to as COD (cash on delivery) transactions.
Delta
A statistical measure of the relationship between an option contract's
price movement to the price movement of the underlying futures contract
or stock price. To illustrate, if the option's underlying stock increased
by 2 points and the call option increased by 1 point, the call option
would have a delta of .5. As an in-the-money option near expiration, it
advances to a delta of 1.
See: In
The Money
Demand
Deposit
A type of bank account whereby the account balance can be withdrawn by
the depositor without prior notice to the bank (e.g. checking accounts).
The balance can be withdrawn via check, automatic teller machine or by
transfers to other accounts using a PC or telephone. The Federal Reserve
uses demand deposits as a primary indicator as to when to implement monetary
policy because they are the largest component of the money supply.
Demand-Pull
Inflation
Price increases as a result of supply not meeting demand.
DeMinimus
Exception
A provision within Regulation T of the Federal Reserve that allows margin
deficiencies of $1000 or less. Brokers may not have to liquidate securities
to correct the situation. However, a broker does have to obtain the funds
within a reasonable period. This rule is in effect for cases in which
the client may be unavailable because of vacations or some other extraordinary
event.
See: Liquidation;
Margin
Call; Regulation
T; Sell
Out Procedures
Denomination
Face value of securities, currency and coins.
See: Face
Value; Par
Depletion
Accounting
An accounting practice that allows for charges against earnings based
on the amount of assets taken out of reserves to reductions in taxable
income. This practice is only available to companies that extract natural
resources such as oil and gas.
Deposit
1: Securities put into a customer's account at a financial institution
(e.g., brokerage firm).
2: Cash,
checks, or drafts credited to a customer's account at a financial institution
(e.g., bank checking and saving accounts).
3: Money
put down as an indication of good faith in contracts and vendors, such
as utility and telephone companies, to protect the other party against
nonpayment, property damage and contract defaults.
Depository
Trust Company (DTC)
A central securities certificate repository that is a member of the Federal
Reserve System and is industry-owned. The New York Stock Exchange is the
majority owner. DTC members deliver securities to each other via computerized
debit and credit entries. This reduces the need to actually move paper
certificates.
See: Federal
Reserve System
Depreciation
A bookkeeping entry that does not require cash outlay nor funds to be
earmarked. The entry is a charge against earnings to write off the cost
of an asset over its assessed useful life over a set time period. It reduces
taxable income but does not reduce cash. The most commonly used depreciation
methods are Straight-line Depreciation and Accelerated Cost Recovery System
(ACRS).
Depression
Economic situation characterized by rising unemployment, an excess of
supply over demand, deflation, reduced purchasing power, contraction of
general business activity and public fear.
See: Deflation
Derivative
Instrument
Financial instrument whose price is based on an underlying security--for
example, an option's value can be derived either from its underlying stock,
stock index, or future (dependent upon the type of option).
See: Options;
Underlying
Security
Descending
Tops
Chart pattern where each new high price for a security is lower than the
former high price. In other words, from the stock's high price, it falls
and then rises. However, the price never reaches the stock's previous
high price. If this pattern continues, technical analysts consider this
type of trend to be bearish.
See: Technical
Analysts
Designated
Examining Authority (DEA)
A self-regulatory body that has surveillance responsibility for specific
broker-dealers. As some firms have memberships on several exchanges, and
in the NASD and MSRB, one regulator is designated to a firm.
See: MSRB;
NASD
Designated
Order
An order given to a municipal syndicate that indicates which syndicate
members should receive the sales credit.
Designated
Order Turnaround (DOT)
Electronic system provided by the New York Stock Exchange (NYSE) and used
by NYSE members to expedite execution of market orders for 1 to 2,099
shares. The system routes the orders directly from the member firm to
the specialist. A similar system called "Super Dot" routes limit
orders.
See: Limit
Order; Market
Order; Specialist
Devaluation
In relation to the currencies of other countries, the declining value
of a particular country's currency. It can also be caused by another country's
currency rising in value as compared to the currency value of a specific
country.
|
