Financy Glossary
The online dictionary of financial terms

d

1

Daily Change

The daily change is the difference between the most recent price of a security and the closing price from the previous trading day.

2

Daily Close

Daily close is a synonym for closing price, i. .e

the price at which something (such as a share) was last traded before the end of a particular trading day.

3

Daily High

  • The highest price paid for something (such as a share) during a specific trading day.

Or

  • The highest point reached by in index during a specific day.
4

Daily Low

  • The lowest price paid for something (such as a share) during a specific trading day.

Or

  • The lowest point reached by in index during a specific day.
5

Directors Dealings

When directors of a publicly quoted company buy or sell shares of that company, it is known as directors dealings. Most jurisdictions and stock exchanges have specific rules governing directors dealings. It is for instance not unusual to prohibit directors dealings during the two months leading up to an announcement of company results.

6

Dollar Cost Averaging

In the United States, dollar cost averaging is an investment strategy where investors make regular purchases for a fixed dollar amount per purchase, e.g. buy shares in a certain company for $10,000 on the first trading day of each month. When the market price of the company share is low, $10,000 will be enough to buy a lot of shares. When the market price of the company share is high, $10,000 will give the buyer a smaller number of shares. Dollar Cost Averaging is also known as Constant Dollar Plan.

The UK equivalent is Pound Cost Averaging.

7

Dow Theory

The Dow Theory was formulated by Charles Dow in 1887. Charles Dow wrote a series of articles where he proposed that the direction of share prices in each average is based on a certain set of rules.

Key concepts of Dow Theory:

  • Share price reflects everything known about a stock.
  • At any given time, there will be three trends unfolding in the stock market.- A primary trend that will last for more than one year.- A secondary trend which is a corrective reaction to the primary trend. A secondary trend will typically last for more than one month but less than three months.

    – A tertiary trend which is a short-term movement that will last for a maximum of three weeks.

  • Primary stock market trends have three phases; the aggressive phase, the general phase and the headlong buying phase.
  • A reversal signal will denote the end of a trend.
8

Down Tick

When a transaction is made at a price that is lower than the price of the previous transaction, it is referred to as a down tick.

In finance, the term down tick is commonly used in reference to shares, but can be used for other traded assets as well, such as commodities.

9

Dual Listing

When a security is listed on two exchanges instead of just one, it is known as a dual listing.

The practice of listing a security on more than one exchange is especially popular among large or high-aiming stock companies native to countries where the domestic market for company shares is small.

10

Dual Purpose Fund

In the United States, this term will typically denote a closed-end fund with a limited life and two main classes of shares: income shares (preferred shares) and capital shares (common shares). All the income goes to the holders of income shares. When the fund expires, holders of income shares are paid a fixed redemption price for their shares, and any assets remaining in the fund after that go to the holders of capital shares.

In the United Kingdom, a similar solution is the Split Capital Investment Trust.