Delivery

The tender and receipt of the underlying commodity or the payment or receipt of cash in the settlement of an open futures contract.

Demand

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.

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.

Cum-Dividend/Distribution Date

The trading day before the ex-dividend/distribution (ex-d) date. It is the last day on which the securities can be traded and on which the buyer is entitled to the dividend/distribution.

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.