Dealers: Definition in Trading, Meaning and Comparison to Brokers
A dealer is an individual or firm that buys and sells securities for its own account. When acting as a principal, the dealer trades…
Disbursement?
A disbursement is money paid out from one fund or account and credited to another party. In bookkeeping terms, it’s a transaction that reduces…
Deadweight Loss, How It’s Created, and Economic Impact
A deadweight loss is the value of transactions that would have occurred in a free market but do not take place because the market…
Disability Insurance? Definition and How It Protects You
Disability insurance is a contract that pays you income when an illness or injury prevents you from working. The payment is intended to replace…
Deadweight Loss of Taxation: Definition, How It Works, and Example
• Deadweight loss of taxation is the net reduction in economic activity and associated welfare that occurs when a tax changes behavior—buyers purchase less,…
Dirty Price? Definition, Vs. Clean Price, and Example
• Dirty price = the market price of a bond including any accrued interest owed to the seller. When a bond trades between coupon…
Dead Cat Bounce: What It Means in Investing, With Examples
A dead cat bounce is a brief, temporary uptick in the price of a security or market inside a longer-term downtrend. Traders often see…
Direct Method
Definition – Direct method: a way to present the operating section of the statement of cash flows that shows actual cash receipts and cash…
Dividend Discount Model (DDM) Formula, Variations, Examples, and Shortcomings
What it is (short definition) – The dividend discount model (DDM) is a valuation method that estimates a stock’s intrinsic price by discounting the…
Direct Tax: Definition, History, and Examples
A direct tax is a levy that the taxpayer pays directly to the authority that imposes it (for example, a national or local government).…