The combined desire, ability and willingness on the part of consumers to buy goods or services. Demand is determined by income and by price, which are, in part, determined by supply.
Archives
Derivatives
Options and other instrument whose value depends on an underlying security. For instance, the value of a call option on Cisco Systems (derivative) fluctuates with the price of Cisco System’s stock.
Diluted Earnings (a.k.a. fully diluted earnings)
Total of after tax (bottom line) earnings divided by number of common shares including unexercised stock options, and unconverted preferred stock and convertible bonds. Undiluted earnings would be after tax earnings divided by issued stock only, not considering outstanding options, etc.
Direct Stock Purchase Plan (DSP)
A plan implemented by a corporation allowing purchase of shares, or fractions of shares, directly from the company, usually on a regular basis.
Discount
The difference between a bond’s face value and its current market price.
Cyclical Stock
A stock of a company in an industry sector that is particularly sensitive to swings in economic conditions.
Daily Price Limit
The maximum price advance or decline permitted for a futures contract in one trading session compared to the previous day’s settlement price.
Day High
The highest price that a security has traded at during the day.
Day Low
The lowest price that a security has traded at during the day.
Day Order
An order that is valid only for the day it is entered. If the order is still outstanding when the market closes, it will be purged overnight.