Financial Glossary – D

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3D Printing – a type of additive manufacturing that creates objects by adding or depositing layers of material. Unlike subtractive manufacturing, it does not start with a block of something and gradually remove parts of it. The 3D printer gets its instructions from a computer (digital) file. We will eventually be able to 3D print virtually anything.

D2C – which stands for Direct-to-Consumer, is when the maker of a product sells directly to the end user rather than through an intermediary such as a warehouse, distributor, or retailer. Since the advent of the Internet, this business model has become increasingly more popular.

Dark Pools – trades that are secret and not available for the public to see. Some stocks are traded in dark pools, exchanges hidden from the public eye, as opposed to normal public stock exchanges, such as NYSE or NASDAQ.

Data – information such as facts, figures, measurements, amounts, trends, and dimensions that we collect for reference, analysis, and to help us plan for the future, i.e., make strategic decisions. Descriptive data includes information on something or somebody’s habits, features, hair color, etc.

Data Analysis – the systematic process of examining, cleaning, transforming, and interpreting data to discover useful information, draw conclusions, and support decision-making. It involves identifying patterns, trends, and relationships within data sets to gain insights that can inform strategies, improve performance, and solve problems across various fields.

Data Analytics – the process of examining raw data to identify patterns, draw conclusions, and support decision-making. It involves using tools and techniques to transform data into actionable insights, enhancing business processes, improving efficiency, predicting trends, and fostering data-driven strategies across industries.

Data Intelligence – the systematic analysis of data to derive actionable insights, guiding strategic decisions across various domains such as business, healthcare, and public policy.

Database Marketing – a method of obtaining and analyzing a large amount of information about a company’s customer base. The aim is to then for businesses to tailor their marketing plans and sales decisions.

Day Trader – somebody who buys and sells securities, i.e., financial instruments, in the same trading day. In other words, any operation that started on a trading day must close by the end of that day. They mostly work in stock markets and foreign exchange markets. However, a day trader can work in any marketplace.

Deadline – a specific date or time by which a task must be finished or a deliverable must be submitted, serving as a critical time constraint in project management and planning.

Debit Card – a plastic card that debits the holder’s bank account after each transaction. Unlike a credit card, it does not lend the money for a purchase.

Debt – refers either to money (or a physical thing) owed to the lender, or gratitude, as in being forever in debt to somebody who saved your life. The party receiving the debt is known as the borrower or debtor. Some economists say levels of debt globally are far too high, and predict another debt crisis will strike soon and spread rapidly across the world.

Debt Ceiling –  also known as the debt limit or statutory debt limit, a debt ceiling is the maximum amount of money the U.S. Treasury is allowed to borrow. This limit is set by the US Congress.

Debt Consolidation – the process of combining multiple debts into a single loan or payment. This simplifies managing debt by replacing multiple payments with one, often at a lower interest rate. It can involve personal loans, home equity loans, or credit card balance transfers, depending on the individual’s financial situation.

Debt Equity Ratio – a measure of the relationship between capital that came from creditors and capital that originated from shareholders. It is a calculation that reveals the relative proportion of stockholders’ equity and debt used to finance a business’ assets. Also called debt-to-equity ratio or D/E ratio.

Debtor – If I owe money to a bank, for example, I am the debtor and the bank is the creditor. We can used the term for a person, company, organization, government, or any entity that owes money.

Debt Ratio – a calculation that shows us what proportion of a company’s or individual’s assets consists of debt. It reveals the extent of a business’ (or person’s) leverage. At national level, the term may also refer to the ratio of government debt to GDP.

Debt Service Coverage Ratio – also known as DSCR or debt coverage ratio, is the ratio of available cash for debt servicing to interest, principal and lease payments. In government finance, it refers to the amount of export earnings required to meet a country’s external debt obligations. Banks look carefully at a loan applicant’s DSCR when deciding whether to lend money.

Deep Learning – an AI technique inspired by the human brain’s workings, utilizing layered neural networks to learn from large amounts of data. It excels in recognizing patterns, making predictions, and decision-making, significantly impacting fields like image and speech recognition, and natural language processing.

Default – to fail to pay back a debt. We can also use the term as a noun, as in: “ACME Inc. fell prey to default two years ago.” In computing language, the term refers to reverting automatically to its original state.

Defensive Shares – stocks that fluctuate much less severely when the economy does very well or badly. They belong to companies that provide products and services people need all the time, regardless of their financial situation, such as electricity, natural gas, water and essential foods. Also known as non-cyclical stocks or defensive stocks.

Deficit – the amount by which expenses or liabilities exceed income or assets over a certain period.

Deflation – when the price of goods and services decreases (it is the opposite of inflation).

Demand – an economics term that refers to a measure of desire to have or own a good or service, or all goods and services when talking nationally. It is the opposite of supply. When prices rise, demand declines, but when prices go down demand increases. Market economies rely on the forces of supply and demand, which regulate prices, rather than a central authority, like in a command economy.

Demand Loan – a loan with no maturity date or payment schedule. The lender can ask for full payment of the remaining debt at any time. Also known as a demand note, call loan or broker loan.

Demography – the study of human populations and the factors that make them change, such as births, deaths and migration. A demography specialist is called a demographer. He or she studies populations and the people within them.

Dental Tourism – traveling to a different country for dental care. It is a subset of the medical tourism sector.

Depreciation – when assets decline in value over time. It is also an income tax deduction that enables a taxpayer to recover the cost of certain assets.

Depression – when a recession continues for more than 3 years, it becomes a depression. During the depression, GDP contracts by at least ten percent. A depression is longer than a recession. However, recessions and depressions have the same starting dates. We also refer to it as an ‘economic depression.’

Derivative – a contract between two or more parties that is derived from or based on a specified asset. The parties involved in the derivative decide what that asset will be. Most common derivatives are based on the value of commodities, currencies, stocks, bonds, real estate or interest rates. There are several types of derivatives, including futures, forwards, options and swaps.

Devaluation – when the government forces its domestic currency to decline in value compared to other currencies there is a devaluation. This can only happen to currencies on a fixed exchange rate. Free-floating currencies such as the dollar and pound depreciate and appreciate, they do not devalue.

Developing Country – a nation that is less ‘developed’ than an advanced economy or developed country. A developing country fares poorly on the Human Development Index and has relatively low levels of industrialization. Many people disagree with the precise definition of the term.

Development Economics – the study of how low-income and emerging economies become more developed, i.e. countries that are changing from being agricultural economies to industrial ones. Also known as Economics for Development.

Device – a device is something that people created or adapted for a specific purpose.

Differentiation Strategy – a business approach focused on creating unique value for customers that sets a company apart from competitors.

Digital Assistant – a voice-activated computer program that carries out electronic tasks. It can also answer questions, arrange your schedule, talk to you, and much more.

Digital Currency – a type of currency that only exists electronically. It is not available in physical form, unlike banknotes and coins. In other words, digital currency is intangible. We can use digital money to buy products and services.

Digital Marketing – marketing of products, services, brands, and companies using the Internet and some other digital technologies. It is similar to Internet marketing and online marketing. Since the advent of the Internet, how companies approach marketing has changed significantly.

Digital Selling – the use of online tools and platforms to engage with customers, promote products or services, and complete sales transactions. It leverages digital technologies like websites, social media, email marketing, and AI-powered chatbots to reach a global audience and enhance customer experiences.

Digital Visibility – a.k.a. Online Visibility or Online Presence, refers to the extent to which a brand, product, or individual is visible and accessible online. It encompasses how easily and frequently these entities are found through digital channels, including search engines, social media, websites, and other online platforms, influencing audience reach and engagement.

Digital Wallet – a system that stores a person’s payment information securely. We also call it an E-wallet or electronic wallet. The wallet stores the user’s cards digitally for payments. Payments are made online through an electronic device such as a smartphone, tablet, or computer.

Digitization – the process of converting information into a digital format, where it is stored as binary data. “Digital format,” in this context, means the same as “electronic format.”

Diluted Share – a share in a company after it has issued additional shares. Ownership, voting rights, earnings per share and possibly its value are ‘diluted’, just like concentrated syrup is if you add water.

Direct Selling – a marketing approach where products are sold directly to consumers through independent sales representatives, bypassing traditional retail stores. This method often involves one-on-one demonstrations, home parties, and personal relationships to promote and sell products.

Discount – (Noun) 1. A deduction from the usual price of an item or service. 2. A deduction from the invoice total if the purchaser pays before a certain date. (Verb) 3. To deduct an amount from the price of something. 4. To eliminate something from a list of things that were of concern. 4. To bring down the price (stocks and shares) because of a change in market sentiment. There are more meanings in the main article.

Discount Loan – with this type of loan the lender discounts interest and other charges first from the face value, before lending to the borrower. Only used for short-term loans.

Discount Rate – has several meanings: 1. The interest rate a central bank charges commercial banks for very-short term loans. 2. The interest rate used in discounted cash flow analysis. 3. A reduction in the value of an invoice if the client pays before a certain date, or buys more than a minimum amount. 4. The discount on a bill of exchange or draft if it is cashed in before its maturity date.

Disinflation – the reduction in the rate of inflation, indicating a slowdown in the pace at which prices for goods and services increase.

Display Advertising – a form of advertising that employs visual elements such as graphics, videos, and images to promote a company’s product or service. Today, it is mostly done online.

Disruptive Innovation – refers to the introduction of new technologies or business models that fundamentally alter an industry, displacing established market leaders by offering more accessible, affordable, and often simpler alternatives, thereby reshaping market dynamics and consumer behavior.

Distributed Ledger – a digital system for recording the transaction of assets. All the data for each transaction is recorded in many different places simultaneously. There is no central authority or administrator. A blockchain is a distributed ledger database. The terms shared ledger and distributed ledger technology mean the same as distributed ledger.

Diversification – refers to spreading out into new fields, sectors or geographical areas so that risk not concentrated in one area. If one sector experiences a decline, the company has other activities which continues doing well. Diversification follows the idiom ‘Do not place all of your eggs in one basket.” Many large companies today, however, say that specialization is the future, not diversification.

Dividend – payment made to shareholders from a company’s profits. In most countries, it comes from a company’s net profits, i.e., profit after paying corporate tax.

Dividend Payout Ratio – the proportion of a business’ profit that is paid out as dividends to stockholders over a specified period. The ratio can be expressed as a decimal or percentage.

Dividend Price Ratio – a calculation that shows a stock’s dividend as a percentage of its price. It can alternatively be calculated by dividing a company’s total dividend payments in one year by its market capitalization. Also known as dividend yield.

DIY – an abbreviation of do-it-yourself – the activity of carrying out home repairs, maintenance, and improvements yourself instead of hiring a professional. It is considered distinct from arts and crafts.

Document – a recorded piece of information, either in physical (such as paper) or digital format.

Dogecoin – a cryptocurrency that began as a joke. Hence its nicknames the ‘joke currency’ or the ‘fun cryptocurrency.’ It features a Shiba Inu, a Japanese fighting dog, which is also its mascot. Today, Dogecoin has a market cap of $2 billion.

Domain Authority – a metric developed by Moz that predicts how well a website will rank on search engine result pages. It scores domains on a scale from 1 to 100, with higher scores indicating greater ranking potential.

Domestic Market – where goods and services are traded within the borders of where a company is based. For example, Ford’s domestic market is the US market, while Renault’s domestic market is the French market. Also known as the home market or internal market.

Domino Effect – describes a situation where an initial event causes a chain reaction, leading to a series of similar events. Each event acts as a catalyst for the next, illustrating how actions or occurrences are interconnected, resulting in significant, often unforeseen, outcomes.

Door-to-Door Selling – also known as Door-to-Door Sales, is a direct sales approach where salespeople visit potential customers at their homes or businesses to offer products or services. This method involves face-to-face interactions, allowing for personalized demonstrations, immediate feedback, and direct engagement, often leading to on-the-spot purchase decisions and strong customer relationships.

Dotard – an old man or woman, especially one who is weak and confused. Dotards are in their dotage; a period of senile decay, marked by weakening alertness and poise.

Dow Jones Industrial Average (DJIA) – commonly known as “the Dow,” this is an index that represents the weighted average of the 30 major stocks listed on the New York Stock Exchange or the NASDAQ Stock Market.

Down payment – a down payment is an upfront payment made at the time of purchasing something.

Downsizing – refers to the reduction in the size and of operating costs of a company. In most cases, this involves reducing the workforce.

Dual Economy – an economic system where two distinct sectors coexist within the same country: a modern, developed sector alongside a traditional, less developed one. This divide often results in disparities in income, infrastructure, and living standards between different regions or social groups.

Due Diligence – a comprehensive check of the operational and financial status of any company, individual or entity you plan to come to a business arrangement with. Put simply, it means carrying out research to make sure the other party is reliable, honest, and will stick to their side of the agreement.

Dumping – this refers to companies exporting products at a lower price than their domestic price or the cost of production.

Duplicate Content – Identical or very similar material appearing in multiple places on the internet. The material may be a text, audio, video, image, code, or metadata.