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DATE OF RECORD (RECORD DATE): The date set by the issuing company, on which an individual must own shares in order to be eligible to receive a declared dividend or capital gains distribution. Basically, a date of record ensures the dividend checks get sent to the right people.

DAY TRADE: A buy or sell order which automatically expires if it is not executed during that trading day. 

DAY TRADING: This can be a very active stock, option, or futures trader who holds positions for a short time and makes several trades each day. Day traders are traders who are trying to make a career out of going long or short on a security multiple times in a day.

DEALER: An individual or entity, such as a securities firm, when it acts as a principal and stands ready to buy and sell for its own account or a clients account.

DEBIT BALANCE (DR): This is the amount that a business or individual owes a lender, seller, or factor. In other words, the amount of money a client owes his/her brokerage firm.

DEBIT SPREAD: A spread option position in which the price of the option bought is greater than the price of the option sold. The debit takes place when the price of the premium paid for the option purchased surpasses the premium received for the option sold. 

DECK: The deck refers to the open orders held by floor brokers on an exchange. The deck consists of buy and sells orders for futures and options.

DECLARATION DATE: The date a company's directors meet to announce the date and amount of the next dividend payment. Once it is authorized, the dividend is known as a declared dividend and it becomes the company's legal liability to pay it. 

DELAYED OPENING: A delay of the start of the trading day for a specific issue resulting from circumstances deemed serious enough by the relevant officials to warrant the delay. These circumstances may include a large influx or imbalance of buy and sell orders or a piece of corporate news that may have a significant effect on demand for the stock. 

DELIVERY: This is the legal transfer and receipt of ownership rights. Delivery instrument covering a contract is tendered and received by the contract holder. Delivery can occur in option, or futures contracts. In most instances, the delivery of the actual underlying is rare and contracts are typically closed before settlement.

DELTA: The change in price of a call option for every one-point move in the price of the underlying security. This can sometimes referred to as the "hedge ratio".

DESIGNATED ORDER TURNAROUND (DOT): This is the electronic system that increases order efficiency by routing orders for listed securities directly to professionals on the trading floor, instead of through a broker. It can also be known as "SuperDOT.". 

DISCOUNT RATE: The rate at which member banks may borrow short term funds directly from a Federal Reserve Bank. The discount rate is one of the two interest rates set by the Fed, the other being the Federal funds rate. The discount rate allows the Federal Reserve to control the supply of money and is used to assure stability in the financial markets. 

DIVIDEND YIELD: This is the annual percentage of return that received from dividend payments on stock. The yield a company pays out to its shareholders in the form of dividends. It is calculated by taking the amount of dividends paid per share over the course of a year and dividing by the stock's price.

DIVIDEND: A taxable payment declared by a company's board of directors and given to its shareholders out of the company's current or retained earnings, usually quarterly. Dividends are usually cash payments and can also be in the form of additional shares of company stock. 

DON'T KNOW (DK) NOTICE: In this kind of a trade, one of the parties is unaware of the trade. This is usually a result from lack of information or inaccurate trading instructions.

DOWN-TICK: This happens when a trade is made at a price lower than the previous trade. 

DOWNTREND: This is the constant descending price movements in a financial market over duration of time. 

DUAL/MULTIPLE LISTED: A company's securities are listed on more than one exchange the purpose of this is to add liquidity to the shares and give investors a greater choice in where they have the ability to trade their shares.

 

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