Flashcards
A day order is an order that is valid for that day only. If it is not executed by the close of business that day it is canceled.
A dealer is a person who deals in the buying and selling of securities as a principal, for the firm’s account.
Amount paid to the beneficiary upon the death of the insured.
A debenture is an unsecured bond. Debentures are backed only by the good faith of the corporation. Repayment of the debt is based on the company’s promise to repay.
In a long margin account the debit balance is the loan amount. Interest is charged on the debit balance.
A debit spread involves the purchase of an option and the sale of an option (buy/sell call, or buy/sell put), on the same stock, with the same expiration date. In a debit spread, more money is paid to buy the option than is collected for the sale of the option. In a debit spread, the client is hoping that the spread will widen and the options will be exercised.
Debt per capita is the total debt of a municipality divided by its population.
Debt service is the cash required in a given period, usually a year, for payment of interest and current maturities of principal on outstanding debt. In corporate bond issues, debt service is the annual interest plus annual sinking fund payments. In government bonds debt service refers to the annual payments into the debt service fund.
The debt-to-equity ratio compares a company’s long-term debt to total shareholders’ equity. The debt-to-equity ratio is a measurement of leverage.
DeFi refers to financial activities conducted without the involvement of an intermediary like a bank, government, or other financial institution.
The declaration date is the date on which the company declares an upcoming dividend, set by the board of directors.
The declarations section provides essential information about the insurance policy, including the insured’s details, coverage limits, and policy period.
Term life insurance with a face amount that goes down over time. Decreasing term has a level premium.
The amount the insured pays for covered health care services before the insurance plan starts to pay. After the deductible, there is usually a copayment or coinsurance for covered services. The insurance company pays the rest. Many plans pay for certain services, like an annual exam or disease management programs, before the deductible has been met. All Marketplace health plans pay the full cost of certain preventive benefits before the deductible applies. Some plans have separate deductibles for certain services, like prescription drugs. Family plans often have both an individual deductible, which applies to each person, and a family deductible, which applies to all family members.
The deductible is an amount that must be paid by the insured on a property claim before the insurer will pay anything.
Defamation is being false or maliciously critical of an insurer’s financial condition.
When an issuer fails to pay interest or principal when due they are in default.
Defensive industries are those industries that resist market cycles. Defensive industries include alcohol, tobacco, pharmaceuticals, utilities, and the food industry.
A defensive strategy is an investment method through which investors try to minimize the risk of losing principal. One example is the policy of making purchases and sales according to predetermined objectives without regard for market changes, such as dollar cost averaging.
A deferred annuity is an annuity contract that repays principal and interest in the future. Interest earned during the accumulation (pay in) period is tax deferred. A deferred annuity is not immediately annuitized but may be annuitized in the future.
An annuity under which the annuity payment period is scheduled to begin at some future date. May be purchased with a level, flexible, or single premium.
The deferral of an employee’s compensation to some future age or date. Deferred compensation is a non-qualified plan. It is discriminatory and set up in favor of higher-paid workers. The employer does not fund a non-qualified plan. If the employer should go broke the employee will not get paid.
A deferred compensation plan is a type of non-qualified retirement plan. Generally only offered to highly paid workers, the employee defers some current compensation in favor of a payout in retirement. Deferred compensation is unfunded.
A defined benefit plan is a type of qualified plan. Defined benefit plans are covered by the Pension Benefit Guaranty Corporation (PBGC). A defined benefit plan specifies the amount of money the employee will receive at retirement.
A type of qualified retirement plan (pension plan) in which benefits are determined using a specific benefit formula.
In a defined contribution plan is a type of qualified plan. In a defined contribution plan the employer and the employee may defer a percentage of the employee’s income annually towards retirement.
A type of qualified retirement plan in which annual contributions are determined by a formula set forth in the plan.
Deflation is when there is an overall decrease in prices. Deflation is usually found during an economic contraction.
A demand deposit is a type of account held by a client at a bank or financial institution. In a demand deposit account, the client can request a full withdrawal at any time. Checking and savings accounts are demand deposit accounts.
Benefits that help pay for the cost of visits to a dentist for basic or preventive services, like teeth cleaning, X-rays, and fillings.
A child or other individual for whom a parent, relative, or other person may claim a personal exemption tax deduction. Under the Affordable Care Act, individuals may be able to claim a premium tax credit to help cover the cost of coverage for themselves and their dependents.
Insurance coverage for family members of the policyholder, such as spouses, children, or partners.
Depreciation is used to write down (expense) over time fixed assets. Depreciation is a non-cash expense that has the effect of lowering a business’s taxable income, but not affecting their cash flow. Depreciation is found as an add-back item on a company’s statement of cash flow.
A depression is at least six consecutive quarters of decline in GDP (gross domestic product).
A derivative is a financial product that may or may not have value, depending upon the value of the underlying asset. Options, rights, warrants, LEAPS, futures, and forwards, are all derivatives.
Today, instead of using the term specialist, the term designated market maker is used to describe the individual who works on the floor of the exchange, matching buyers and sellers, and providing liquidity as needed by trading out of their own account.
A diagonal spread is either the purchase and sale of two calls or two puts with different strike prices and different expiration months (same class, puts, or calls).
A digital asset that is a security is referred to as a “digital asset security.” As such, it’s regulated by the SEC.
Digital assets are broadly defined as any digital representation of value which is recorded on a cryptographically secured distributed ledger or any similar technology.
This is a type of currency that represents a fiat, or government-backed currency, on the blockchain. For example, digital fiat in the U.S. would be pegged to the U.S. dollar.
Dilution is a decrease in an investor’s holdings, due to the issuance of additional shares.
A direct loss occurs as a result of a covered peril. Direct losses are tangible losses that can be touched and seen.
A direct participation program is usually formed as a limited partnership. They are illiquid due to the fact they do not trade in the secondary market.
Insurance sold directly to the insured by an insurance company through its own employees by mail or over the counter
Directed brokerage may or may not be allowed by an investment adviser. If the investment adviser allows directed brokerage it can take place in one of two ways. Either the investment adviser directs the clients’ trades to be executed through a specific broker-dealer, or the investment adviser allows the client to tell the firm which broker-dealer they would like to use for execution.
Directed brokerage may or may not be allowed by an investment adviser. If the investment adviser allows directed brokerage it can take place in one of two ways. Either the investment adviser directs the clients’ trades to be executed through a specific broker-dealer, or the investment adviser allows the client to tell the firm which broker-dealer they would like to use for execution.
A limit in a range of major life activities. This includes activities like seeing, hearing, walking, and tasks like thinking and working. Different policies have different disability standards.
Insurance that provides income payments to the insured wage earner when income is interrupted or terminated because of an illness, sickness, or accident. It may include critical illness or accidental death benefits. Policies are available as short-term or long-term coverage.
A life insurance policy addendum providing income payments to the policyholder, and/or waiving premium payments due, when income is interrupted or terminated because of illness or injury.
A discount occurs when a bond is trading in the secondary market for less than par value because interest rates have gone up since the bond was originally issued.