Deflation
Deflation is the opposite of the term inflation; deflation is a well-known economic term that is used to describe a period in which the prices of commodities and services fall/decline. Some of the most common causes of deflation include a decrease in: Money supply/credit Government spending Business investment High level of unemployment Consumer demand How Deflation...
David Ricardo
DefinitionDavid Ricardo was a British political economist, one of the most influential of the classical economists along with Thomas Malthus, Adam Smith and James Mill. David Ricardo Who was 'David Ricardo' David Ricardo was a classical economist known for his Iron Law of Wages, labor theory of value, theory of comparative advantage and theory of rents. David...
Day Rate
What is 'Day Rate' The price/cost of a particular service for a day's period. In some markets it is referred to as "per diem" (cost that an organization will pay for one days' work) and often translates to a 7.5 hour work day. Some purchasing organizations prefer a quoted day rate instead of an hourly rate for...
Dash To Trash
What is 'Dash To Trash' When investors flock to a class of securities or other assets, bidding up prices to beyond what can be justified by valuation or other fundamental measures. While the dash-to-trash effect can occur within any type of security, the phrase is typically used to describe low-quality stocks and high-yield bonds, both of which...
Dead Money
What is 'Dead Money' A slang term for money invested in a security with minor hopes of appreciation or earning a return. The stock may also be referred as dead money by analysts, as a warning to investors who might purchase the shares. Explaining 'Dead Money' Funds that are not earning interest or income...
Dollar Cost Averaging
DefinitionDollar cost averaging is an investment strategy with the goal of reducing the impact of volatility on large purchases of financial assets such as equities. Dollar cost averaging is also called the constant dollar plan, pound-cost averaging, and, irrespective of currency, as unit cost averaging or the cost average effect. Dollar Cost Averaging Dollar cost averaging is a low-risk...
Debt to Equity Ratio
DefinitionThe debt-to-equity ratio is a financial ratio indicating the relative proportion of shareholders' equity and debt used to finance a company's assets. Closely related to leveraging, the ratio is also known as risk, gearing or leverage. The two components are often taken from the firm's balance sheet or statement of financial position, but the ratio may also be calculated...
Dead Presidents
What is 'Dead Presidents' Slang referring to U.S. paper currency. Dead presidents can refer to any unit of currency, but most often refers to George Washington, whose picture is on the $1 bill. Therefore an item that costs six dead presidents would mean that it costs $6. Explaining 'Dead Presidents' During the Civil War,...
Daisy Chain
What is 'Daisy Chain' Daisy chain is a term used to describe a group of unscrupulous investors who, when practicing a kind of fictitious trading or wash selling, artificially inflate the price of a security they own so it can be sold at a profit. Small-cap stocks with low liquidity are highly susceptible to daisy chains because...
Data Mining
DefinitionData mining is the process of discovering patterns in large data sets involving methods at the intersection of machine learning, statistics, and database systems. Data Mining What is 'Data Mining' Data mining is a process used by companies to turn raw data into useful information. By using software to look for patterns in large batches of data,...