Glossary

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There are currently 12 names in this directory beginning with the letter D.
Day trading
Day trading is a strategy of short-term investment that involves buying and selling financial instruments, such as stocks, currencies, or commodities, within the same trading day. Day traders aim to take advantage of short-term price movements and capitalize on intraday volatility. They typically close out all their positions by the end of the trading day and do not hold any positions overnight.

Debt
Debt refers to the amount of money borrowed by an individual or entity from another party. It is commonly utilized by both individuals and corporations to afford significant purchases that would otherwise be unaffordable.Typical forms of debt include loans like mortgages, auto loans, personal loans, and credit card debt.

Debt to Equity
A financial ratio that measures the proportion of shareholder equity compared to debt used to fund a company's assets.

Debtor
A debtor (aka borrower) is a person or an entity that owes money to others.

Default Risk
Default risk refers to the potential for a debt issuer/borrower to be unable to fulfill its financial obligations, such as making regular interest payments or repaying the debt in full at maturity.

Deflation
Deflation is a decrease in the overall level of prices for goods and services. Typically, it occurs when the inflation rate drops below 0%.

Depreciation
When an asset loses value over a period of time.

Dilution
Dilution occurs when a company issues additional shares after its initial public offering (IPO), leading to a decrease in the value of existing shares.

Diversification
Diversification is a risk management approach that involves dividing your investments among various asset classes or securities. This aims to decrease the overall risk by spreading investments across multiple areas.

Diversified Portfolio
A diversified portfolio is a collection of different securities and asset classes that are not affected by the same factors, thereby minimizing the overall risk of the portfolio.

Dividend Yield
Dividend yield is a financial metric calculated by dividing the annual dividends paid per share by the price per share.

Dividends
Dividends are a portion of a firm's net profits that is distributed to the shareholders rather than being reinvested in the company.

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