Luxweb Finance, le monde de la finance au Luxembourg

Glossary	Financial Newsletter
This glossary contains over 500 financial terms and definitions to help you get a better understanding of the world's financial markets. Select from the following menu to start navigating through the Luxweb Finance glossary.

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Day Trading	A trading strategy that involves liquidating all positions before the end of the day to avoid risking any overnight losses.
Debenture	A fixed interest stock (bond) secured on the assets of a company. In the event of the liquidation of the company, the owners of the debentures would be paid before the holders of loan stock, preference shares and ordinary shares.
Deferred Shares	Part of the ordinary capital of a company, these shares have exactly the same rights as ordinary shares with the exemption that they do not get a divident until certain conditions are met; for example, until after a specified date in the future or unless a certain level of profitablity is reachable.
Deflation	Deflation is a downward trend in the measure of the retail prices index. It is the opposite of inflation.
Delta	This is the amount by which the price of an option should change against a given change in the value of the underlying instrument.
Demateria-lisation	This is when share certificates held in paper form are converted so that the details are held electronically instead.
Depreciation	The concept that the cost of capital equipment should be written off over its useful life and not during the year in which the cost incurred.
Devaluation	A reduction in the value of currency against other currencies.
Discount	The margin by which a share stands below its net asset value, particularly investment trusts which are often judged on this basis.
Diversification	Reducing risk by spreading investments among different investments, sectors, markets and instruments.
Dividend	The cash sum paid periodically on a company security, such as a share. Ordinary share dividends are more variable since the shares represent the risk capital in a business and the dividend is only paid after prior claims have been met.
Dividend Cover	The number of times a company’s available profits cover the money needed to pay dividends.
Dividend Yield	The dividend paid on a share expressed as a percentage of its share price.
Dow Jones	The stock market indicator for the New York Stock Exchange is updated every minute while the New York Stock Exchange is trading and is the most widely used measure of value of American corporates.
Downgrade	The reduction of the forecast profits or earnings for a company or the prospects for the share price or the reduction of a credit rating for a bond.
Downtrend	A succession of lower lows and lower highs on a bar chart.