Dash To Trash
What is 'Dash To Trash' When investors flock to a class of securities or other assets, bidding up prices to beyond what can be justified by valuation or other fundamental measures. While the dash-to-trash effect can occur within any type of security, the phrase is typically used to describe low-quality stocks and high-yield bonds, both of which...
Dead Money
What is 'Dead Money' A slang term for money invested in a security with minor hopes of appreciation or earning a return. The stock may also be referred as dead money by analysts, as a warning to investors who might purchase the shares. Explaining 'Dead Money' Funds that are not earning interest or income...
Dollar Cost Averaging
DefinitionDollar cost averaging is an investment strategy with the goal of reducing the impact of volatility on large purchases of financial assets such as equities. Dollar cost averaging is also called the constant dollar plan, pound-cost averaging, and, irrespective of currency, as unit cost averaging or the cost average effect. Dollar Cost Averaging Dollar cost averaging is a low-risk...
Debt to Equity Ratio
DefinitionThe debt-to-equity ratio is a financial ratio indicating the relative proportion of shareholders' equity and debt used to finance a company's assets. Closely related to leveraging, the ratio is also known as risk, gearing or leverage. The two components are often taken from the firm's balance sheet or statement of financial position, but the ratio may also be calculated...
Dead Presidents
What is 'Dead Presidents' Slang referring to U.S. paper currency. Dead presidents can refer to any unit of currency, but most often refers to George Washington, whose picture is on the $1 bill. Therefore an item that costs six dead presidents would mean that it costs $6. Explaining 'Dead Presidents' During the Civil War,...
Daisy Chain
What is 'Daisy Chain' Daisy chain is a term used to describe a group of unscrupulous investors who, when practicing a kind of fictitious trading or wash selling, artificially inflate the price of a security they own so it can be sold at a profit. Small-cap stocks with low liquidity are highly susceptible to daisy chains because...
Data Mining
DefinitionData mining is the process of discovering patterns in large data sets involving methods at the intersection of machine learning, statistics, and database systems. Data Mining What is 'Data Mining' Data mining is a process used by companies to turn raw data into useful information. By using software to look for patterns in large batches of data,...
Deadweight Loss
DefinitionA deadweight loss, also known as excess burden or allocative inefficiency, is a loss of economic efficiency that can occur when equilibrium for a good or a service is not achieved. That can be caused by monopoly pricing in the case of artificial scarcity, an externality, a tax or subsidy, or a binding price ceiling or price floor such...
Day-Around Order
What is 'Day-Around Order' An order that cancels and replaces a previously submitted day order, producing a new request with an adjusted volume or price limit. The term is primarily used by traders in the general equities market. As with a day order, the day-around will expire by the end of the business day. Explaining...
Dangling Debit
What is 'Dangling Debit' A debit entry with no offsetting credit entry. Dangling debit occurs when a company purchases goodwill or services to create a debit. When adding the journal entry to financial statements a corresponding credit balance is not reported and cannot be written off. Dangling debit can be received when a company is acquired but...