Daniel Kahneman

DefinitionDaniel Kahneman is an Israeli-American psychologist notable for his work on the psychology of judgment and decision-making, as well as behavioral economics, for which he was awarded the 2002 Nobel Memorial Prize in Economic Sciences. His empirical findings challenge the assumption of human rationality prevailing in modern economic theory. Daniel Kahneman What is 'Daniel Kahneman' A professor...

Dealer Incentive

What is 'Dealer Incentive' A corporate sales strategy in which the price a dealer has to pay a manufacturer for a particular product is reduced, allowing the dealer to make a higher profit or to reduce the price at which the product is sold to consumers. Dealer incentives can be tied to certain sales quotas, meaning that...

Days Payable Outstanding (DPO)

What is 'Days Payable Outstanding - DPO' The number of days payable outstanding (DPO) represents the typical payment term for a corporation. Generally speaking, days payable outstanding indicates how long it takes a corporation to settle its invoices to trade creditors, such as vendors. It is customary to review DPO on a quarterly or annually basis. Explaining 'Days Payable Outstanding -...

Dealer Bank

What is 'Dealer Bank' A commercial bank authorized to buy and sell government debt securities including federal and municipal bonds. This debt is usually issued to fund large government projects such as road and bridge construction. Dealer banks are registered with the Municipal Securities Rulemaking Board. Explaining 'Dealer Bank' Income from municipal bonds is...

Day Trader

DefinitionA day trader is a trader who adheres to a trading style called day trading. This involves buying and subsequently selling financial instruments within the same trading day, such that all positions will usually be closed before the market close of the trading day. Depending on one's trading strategy, trades may range from several to hundreds of orders a...

Deal Blotter

What is 'Deal Blotter' A trader's record of all the transactions executed on a given day. The deal blotter contains basic information pertinent to a transaction, with additional information included on the deal slip. The deal blotter for a forex trader would include both opening and closing currency positions initiated by the trader. Explaining 'Deal...

Dangerous Asset

dangerous asset

What is a dangerous asset and why are they so risky A dangerous asset is an investment that carries a high degree of risk. While there is the potential for earning high returns, there is also the potential for losing all or most of your investment. Dangerous assets are often volatile, meaning that their prices can rise and fall sharply...

Dealing Desk

What is 'Dealing Desk' In foreign currency markets, the location of a financial institution's forex dealers. Since the forex market is open around-the-clock, many institutions have dealing desks around the world. Dealing desks can also be found outside the foreign exchange markets, such as in banks and finance companies, to execute trades in securities. Explaining...

Dayrate Volatility

What is 'Dayrate Volatility' The intraday unpredictability of an exchange rate (or price of a good or service), that changes due to imbalances in supply and demand. Price levels of various goods or services can change very quickly, depending on the current market condition. Explaining 'Dayrate Volatility' Low levels of dayrate volatility illustrate that...

Dated Date

What is 'Dated Date' The date at which interest begins to accrue on a fixed-income security. Investors who purchase a fixed-income security between interest payment dates must also pay the seller or issuer any interest that has accrued from the dated date to the purchase date, or settlement date, in addition to the face value. ...