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| Day Order |
Automatically expires at the end of the day's standard market trading session if it is not filled.
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| Deferred settlement service (SRD) |
Facility on Euronext that allows market participants to buy or sell shares "on credit", for an additional fee. In a buy trade, the investor does not settle the trade or receive the shares until the end of the month. In a sell trade, the investor does not deliver the shares or receive payment until the last trading day of the month. The facility is known as the SRD (Service de Règlement Différé).
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| Delivery Versus Payment |
The acronym for DVP (delivery versus payment), or transactions in which there is simultaneous transfer of cash and securities following the trade. A basic feature of automated clearing and settlement, DVP reduces risk significantly: today fewer than 0.25% of all DVP instructions presented for settlement fail, on average, and even these are automatically recycled for settlement.
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| Delta |
The sensitivity of a warrant's theoretical value to a change in the price of the underlying security.
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| Depository |
Institution responsible for safekeeping securities and ensuring that the decisions made by fund managers are lawful. A depository can delegate some of its functions, notably the safekeeping function, on a contractual basis to another institution authorised to operate as a custodian. However, it cannot delegate the task of ensuring the lawfulness of decision-making by the fund management company.
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| Derivatives |
Speculative financial instrument, such as a future, option or swap, based on an underlying.
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| Dilution |
Effect on earnings per share and book value per share if all convertible securities were converted and all warrants and stock options were exercised.
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| Discretionary management |
Customised investment method in which a client enters into an agreement authorising an intermediary to manage his or her assets, i.e. to decide when to buy or sell financial instruments for the portfolio without the investor's prior consent. Discretionary management can be used for individual or institutional investors.
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| Diversification |
Technique to mitigate portfolio risk by investing in different securities and thus reduce the risk of holding any single investment that could affect portfolio performance.
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| Dividend |
Income received on an investment in shares. Dividends are usually paid annually and depend on, the results of the issuing company. See Coupon
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| Dividend Yield |
A stock's market value in relationship to its dividend amount expressed as a percentage. To calculate it, divide the dividend by the stock price.
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| Dow Jones Industrial Average (DJIA) |
Measure of the performance of the collection of 30 "blue-chip" stocks traded on the New York Stock Exchange (NYSE).
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