Financial Dictionary


Daily High

The highest price that one security has reached on the market during one particular day.

Daily Low

The lowest price that one security has reached on the market during one particular day.

Daily Trading Limit

A boundary for trading commodities and options, depending on the price. When the highest or the lowest defined price is reached, no further trading is allowed during that trading session.

Daisy Chain

A group of unscrupulous investors who, practicing a kind of fictitious trading or wash selling, artificially inflate the price of a security so that they sell it at a profit. Price manipulation is typically very difficult in stocks with heavy volumes, so the stocks with low liquidity are much more susceptible to daisy chains.

Daisy Chasing

Immoral stockbrokers method of creating fabricated interest in particular stock, done by fictional transactions. By inflating the price of a stock, they get better value for themselves.

Date Acquired

Refers to the date an investor has added his shares to his brokerage account. If he purchased shares through one account and left them there, the date acquired is the same as the purchase date. However, in the case where an investor buys shares through one brokerage, and then wants to transfer them to another […]

Date of Record

The date on which a shareholder must officially own shares in order to be entitled to a dividend.

Dated Date

It is the date at which interest begins to accrue on debt instruments. If a security has been sold between interest payment dates, the buyer must pay additional amount on the security price, due to accrued interest after last interest payment date. Often, the Dated Date is the same date as the issue date of […]


A price-weighted index for the 30 best performing shares on the German market. Translated from German, DAX means performance index.

DBA (Doing Business As)

A formal notice that a one company or individual are Doing Business under a different name. DBA is usually used in contracts.

De Jure Corporation

A corporation that has earned its charter by fulfilling all of the statutory conditions for legally doing business.

Dead Cat Bounce

A quick rise of a stock price on the market after a long decline period, following another decline.


A firm that functions as a market maker and that, as such, positions the security to buy and sell versus the public and/or brokerage community.


A debt instrument which is not secured with physical assets or collateral, backed up only by the integrity and reputation of the issuer. Debentures are documented in an indenture, and are often issued by the government and big corporations.

Debt Consolidation

Replacement of multiple loans with single loan with lower monthly payment or interest rates and longer period of repayment. This is also known as a “consolidation loan.”

Debt Financing

Financing by selling bonds, notes and bills to investors, either individual or institutional. Investor expects that after a period of time principal and interest on borrowed money will be repaid.

Debt Ratio

An indicator of company’s debts relative to its assets. It shows the company’s leverage and the risk of investing in a company with excessive debt. Debt Ratio above 1 shows us that company has more debt than assets, and below 1 shows us that company has more assets than debts. Debt Ratio = Total Debt […]

Debt Restructuring Fraud

An illegal technique where an individual or corporation hides or transfers assets before filing for bankruptcy. Debt restructuring allows the fraudster to reduce or even erase the debts and then reclaim the assets. Debt restructuring fraud is a clear abuse of the intent behind bankruptcy laws. A principle of bankruptcy is that the creditors and […]

Debt Service Coverage

The amount of cash flow necessary to repay or cover monthly interests and principal, or debts. Refers to a company’s ability to cover all of its debts over a given period of time.

Debt Tender Offer

When a firm retires all or a portion of its debt securities by making an offer to its debtholders to repurchase a predetermined number of bonds at a specified price and during a set period of time. Firms may use a debt tender offer as a mechanism for capital restructuring or refinancing. If interest rates […]

Debt to Asset Ratio

It is calculated by dividing total liabilities with total assets. A ratio below 1 means that majority of assets are financed through equity. A ratio above 1 means that they are financed more by debt.

Debt-Equity Swap

It is a way of refinance, when company can trade their debt (existing bonds) for equity (newly issued stocks) in order to avoid bankruptcy (canceling their debts) or change their capital structure. This swap is extremely good for companies that have high stock valuation at the moment of swap, when trading more debt for less […]

Debt-Service Coverage Ratio

In general, it is a ratio between Net Operating Income and Debt Obligations. Refers to corporate, government or personal finance. The bigger the ratio the easier is to borrow money from financial institutions or emit stocks.