D Flashcards
(52 cards)
Day Order
A buy or sell order that automatically expires
if it is not executed on the day it is entered.
All orders are day orders unless otherwise
specified.
Dealer Market
A market in which securities are bought
and sold over-the-counter in which dealers
acts as principals when buying and selling
securities for clients. Also referred to as the
unlisted market.
Dealer Member
A stock brokerage fi rm or investment dealer
which is a member of a stock exchange or
the Investment Industry Regulatory
Organization of Canada
Dealer’s Spread
The difference between the bid and ask
prices on a security
Death Benefi t
The amount that a segregated fund policy
pays to the beneficiary or the estate when
the market value of the segregated fund is
lower than the guaranteed amount on the
death of the annuitant.
Debenture
A certificate of indebtedness of a government
or company backed only by the general
credit of the issuer and unsecured by
mortgage or lien on any specific asset. In
other words, no specific assets have been
pledged as collateral.
Debt
Money borrowed from lenders for a variety
of purposes. The borrower typically pays
interest for the use of the money and is
obligated to repay it at a set date.
Debt/Equity Ratio
A ratio that shows whether a company’s
borrowing is excessive. The higher the ratio,
the higher the fi nancial risk
Declining Industry
An industry moving from the maturity
stage. It tends to grow at rates slower than
the overall economy, or the growth rate
actually begins to decline
Deemed Disposition
Under certain circumstances, taxation rules
state that a transfer of property has occurred,
even without a purchase or sale, e.g., there
is a deemed disposition on death or
emigration from Canada
Default
A bond is in default when the borrower has
failed to live up to its obligations under the
trust deed with regard to interest, sinking
fund payments or has failed to redeem the
bonds at maturity
Default Risk
The risk that a debt security issuer will be
unable to pay interest on the prescribed
date or the principal at maturity. Default
risk applies to debt securities not equities
since equity dividend payments are not
contractual.
Defensive Stock
A stock of a company with a record of
stable earnings and continuous dividend
payments and which has demonstrated
relative stability in poor economic
conditions. For example, utility stock
values do not usually change from periods
of expansion to periods of recession since
most individuals use a constant amount of
electricity
Deferred Annuity
This type of contract, usually sold by life
insurance companies, pays a regular stream
of income to the beneficiary or annuitant
at some agreed-upon start date in the future.
The original payment is usually a stream of
payments made over time, ending prior to
the beginning of the annuity payments. See
also Annuity.
Deferred Preferred Shares
A type of preferred share that pays no
dividend until a future maturity date.
Deferred Sales Charge
The fee charged by a mutual fund or
insurance company for redeeming units. It
is otherwise known as a redemption fee or
back-end load. These fees decline over
time and are eventually reduced to zero if
the fund is held long enough.
Deferred Tax Liabilities
The income tax payable in future periods.
These liabilities commonly result from
temporary differences between the book
value of assets and liabilities as reported on
the statement of fi nancial position and the
amount attributed to that asset or liability
for income tax purposes
Defi ned Benefi t Plan
A type of registered pension plan in which
the annual payout is based on a formula.
The plan pays a specific dollar amount at
retirement using a predetermined formula.
Defi ned Contribution Plan
A type of registered pension plan where the
amount contributed is known but the dollar
amount of the pension to be received is
unknown. Also known as a money purchase
plan
Delayed Floater
A type of variable rate preferred share that
entitles the holder to a fixed dividend for a
predetermined period of time after which
the dividend becomes variable. Also known
as a fixed-reset or fixed floater.
Delayed Opening
Postponement in the opening of trading of
a security the result of a heavy influx of buy
and/or sell orders.
Delisting
Removal of a security’s listing on a stock
exchange.
Demand Pull Infl ation
A type of inflation that develops when
continued consumer demand pushes prices
higher.
Depletion
Refers to consumption of natural resources
that are part of a company’s assets. Producing
oil, mining and gas companies deal in
products that cannot be replenished and as
such are known as wasting assets. The
recording of depletion is a bookkeeping
entry similar to depreciation and does not
involve the expenditure of cash.
