Equity Option

An option contract that grants the holder the right to buy or sell a specific number of shares of stock at a specified price during a specific period of time.

Discount Broker

A stockbroker charging lower commissions than full-service brokers. Discount brokers do not give investment advice.

Dollar Cost Averaging

Investing a fixed amount of dollars in a specific security at regular set intervals over a period of time. Dollar cost averaging results in a lower average cost per share, compared with purchasing a constant number of shares at set intervals. The investor buys more shares when the price is low and buys fewer shares when the price is high.

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.