What is Divestment? Divestment is the sale of an existing business or an asset class that doesn’t perform or meet the expectations of the company or a country. Divestment is also referred to as divestiture. Reasons for Divestment Divestment is a difficult decision for a business. However, there are many reasons why…
What is Dumping? Dumping in the financial world occurs when a company or a country exports its products at a price lower than its domestic price. Exporters dump to compete with the producers and sellers in the importing country. How Dumping Takes Place It may seem that the dumping company may lose a lot of…
Who is an Early Adopter? An early adopter is one who tries new products before most other consumers. Early adopters are more common with technology products. They provide feedback to the vendor and help them to refine the product features, design, distribution, and support. Early adoption can also be viewed as a form of testing…
What is Deregulation? Deregulation is the removal or reduction of government regulations in a specific industry. The goals are to allow industries to operate businesses more freely, make decisions efficiently, and remove corporate restrictions. Overall, the main objective is to remove barriers to competition so that a particular industry can compete in the international market…
What is Depreciation Recapture? Depreciation recapture is a procedure by the Internal Revenue Service (IRS) in the U.S. to collect taxes on the sale of property that’s been depreciated. The property must have been previously used to offset the owner’s ordinary income due to depreciation. Therefore, when you file taxes, the gain from the sale…
What is a Depositary Receipt? A depositary receipt is a negotiable instrument issued by a bank to represent shares in a foreign public company, which allows investors to trade in the global markets. Understanding Depositary Receipts Depositary receipts allow investors to invest in companies in foreign countries while trading in a local stock…
What is Demutualization? Demutualization refers to the process by which a mutual company converts into a public share company. A mutual company is an institution owned by its mutual owners who enjoy exclusive use of its productive assets. Essentially, the company is owned by its users. When a mutual company decides on a legal ownership…
What is a Demand Deposit? A demand deposit is money deposited into a bank account with funds that can be withdrawn on-demand at any time. The depositor will typically use demand deposit funds to pay for everyday expenses. For funds in the account, the bank or financial institution may pay either a low or zero…
