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.
Discount Broker
A stockbroker charging lower commissions than full-service brokers. Discount brokers do not give investment advice.
Dividend
The portion of the issuer’s equity paid directly to shareholders. It is generally paid on common or preferred shares. The issuer or its representative provides the amount, frequency (monthly, quarterly, semi-annually, or annually), payable date, and record date. The exchange that the issue is listed on sets the ex-dividend/distribution (ex-d) date for entitlement. An issuer is under no legal obligation to pay either preferred or common dividends.
Dividend Yield
Total of 12-month’s dividends paid (historical or forecast) divided by the latest share price.
Dividend/Distribution Payable Date
The date set by the issuer on which the dividend/distribution will be paid.
Dividend/Distribution Record Date
The date on which a security holder must be registered as a holder of an issue to receive the dividend/distribution.