What is Discounted Cash Flow (DCF)? Discounted cash flow (DCF) is an analysis method used to value investments by discounting the estimated future cash flows. DCF analysis can be applied to value a stock, company, project, and many other assets or activities, and thus is widely used in both the investment industry and corporate finance…
What is a Discount Broker? A discount broker is simply a brokerage firm that offers discount trading rates to investors. The brokers work at a discounted commission rate to accommodate their clients. Discount brokers – either individuals or firms – complete buy and sell orders for clients. They do not, however, provide specific trading advice…
What is Disguised Unemployment? Disguised unemployment, or hidden unemployment, is an economic term used to refer to a portion of the labor force involved in redundant work with very minimal to no productivity. Hidden unemployment does not impact the aggregate output of an economy. An example would be a small family farm with ten employees…
What is a Diversified Company? A diversified company is a type of company that oversees several lines of business – most of them being unrelated to each other. Creating a diversified company is beneficial, as it provides several different product lines and customers, resulting in the company being shielded from any economic downswings or business…
What is the Dead Cat Bounce? The dead cat bounce describes a financial phenomenon whereby a stock in a steady decline suddenly, and without a logical cause, gains value temporarily before continuing its downward trend. The term originates from the saying that even a dead cat will bounce if dropped from high enough. True Price…
What is Depth of Market (DOM)? Depth of Market (DOM) is a window that displays the real-time market activity at different price levels in a security or currency market. DOM is also known as the order book. It records the pending buy and sell orders of particular securities, and thus, helps to determine which trade…
What is the Automated Clearing House (ACH)? The Automated Clearing House network, also known as ACH, is a channel run by the National Automated Clearing House Association (NACHA), which transfers funds electronically from one place to another. The NACHA operates to facilitate the growth of electronic payments throughout the US for payroll, direct deposit, consumer…
What is a Direct Deposit? A direct deposit can be defined as a payment made directly into a payee’s account. The payment can be made electronically from one account to another instead of the traditional check deposit. Direct deposits are especially common for businesses, as they make use of the transaction to pay their employees….
What is Discretionary Investment Management? Discretionary investment management is an investment management style that refers to when an investment team makes buying and selling decisions on behalf of a client at their discretion. The decisions are usually made by a portfolio manager who has the ultimate end-decision for which individual securities to hold in a…
