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Demand shock
An event that affects the demand for goods and services in an economy.
Demand-pull inflation
A theory of inflation or price increases resulting from so-called excess demand. Related: Cost-push inflation.
Denomination
Corresponds to the face value of currency units, coins, and securities. An international transaction may be denominated in US dollars, for example, or in British pounds.
Dependent
Acceptance of a capital budgeting project contingent on the acceptance of another project.
Dependent variable
Term used in regression analysis to represent the element or condition that is dependent on values of one or more other independent variables.
Deposit insurance
See: [:FDIC: Federal Deposit Insurance Corporation|f.d.i.c.:]
Depositary
An agent appointed for a Tender or Exchange Offer who accepts certificates from shareholders, processes them and assures that the appropriate cash or new securities are properly remitted to the tendering party.
Depository institution
A financial institution that obtains its funds mainly through deposits from the public. This includes commercial banks, savings and loan associations, savings banks and credit unions.
Depository Institutions Deregulation and Monetary Control Act
The 1980 federal legislation that ended the regulation of the banking industry.
Depository preferred
Device enabling an issuer to circumvent an arbitrary corporate limit on the number of preferred shares issuable. Applies mainly to convertible_security.
Depository receipt
See Also: American Depositary Receipt
Depository transfer check (DTC)
Check made out directly by a local bank to a particular firm or person.
Depository Trust and Clearing Corporation (DTCC)
The Depository Trust and Clearing Corporation (DTCC), through its subsidiaries, provides post-trade clearance, settlement, custody and information services for equities, corporate and municipal debt, money_market, American depositary receipts, exchange-traded funds, unit investment trusts, mutual_fund, insurance products and other securities. The National Securities Clearing Corporation (NSCC) subsidiary, which acts as a central counterparty (CCP), provides trade guarantee, netting and risk management services for equity and debt transactions from all U.S. stock exchanges and stock_market. The Depository Trust Company (DTC) subsidiary has custody of and provides asset servicing for millions of securities issues of issuers from the U.S. and over 60 other countries. DTC serves as a major clearinghouse for institutional post-trade settlement. DTCC's two subsidiary businesses have Standard and Poors' highest rating: AAA.
Depository Trust Company (DTC)
DTC is the world's largest central securities depository. It accepts deposits of over 2 million equity and debt securities issues (valued at $23 trillion) from over 65 countries for custody, executes book-entry deliveries (valued at over $116 trillion in 2000) records book-entry pledges of those securities, and processes related income distributions. DTC is a member of the Federal Reserve System and is owned by The Depository Trust and Clearing Corporation (DTCC), which is in turn owned primarily by most of the major banks, broker-dealers, and exchanges on Wall Street.
Depreciate
To allocate the purchase cost of an asset over its life.
Depreciated cost
In terms of economics: The measure of capital consumption during production, e.g., machine and equipment wear.
In terms of finance: The process of amortization of fixed assets (equipment) to spread the cost over the depreciable life of the assets.
Depreciation
A noncash_charge (also known as non-cash charge) that provides a source of free_cash_flows. Amount allocated during the period to amortize the cost of acquiring long-term assets over the useful life of the assets. To be clear, this is an accounting expense not a real expense that demands cash. The sum of depreciation expenses of prior years leads to the balance sheet item Accumulated Depreciation.
Depreciation tax shield
The value of the tax write-off on depreciation of plant and equipment.
Depressed market
Market in which supply overwhelms demand, leading to weak and lower prices.
Depressed price
In the context of stocks, stock whose market price is low in comparison to stocks in its sector.
Depression
Period when excess aggregate supply overwhelms aggregate demand, resulting in falling prices, unemployment problems, and economic contraction.
DEQ
Abbreviation for the Incoterm "Delivered Ex Quay."
Deregulation
The reduction of government's role in controlling markets, which lead to freer markets, and presumably a more efficient marketplace.
Derivative
A financial contract whose value is based on, or "derived" from, a traditional security (such as a stock or bond), an asset (such as a commodity), or a market index.
Derivative instruments
Contracts such as options and futures whose price is derived from the price of an underlying_asset.
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