Barclays Stockbrokers Glossary
Glossary D


Daily reset
Some types of investments reset their exposure daily. This means investors can start with the level of exposure stated in the investment objectives, on any day they invest. However due to the effects of compounding, their performance over longer periods of time can differ significantly from the performance of their underlying index over the same period of time.

For example, let’s say an investment is designed to provide twice the return of an index. An investor buys a share for £100 while the underlying index is at 10,000. If the index goes up 10% to 11,000, the investment will go up 20% (2x10%) and the investor’s share will increase to £120. If the index goes from 11,000 back down to 10,000 the next day, that will equal a decline of 9.09%, which means that the investment will go down twice
that much, or 18.18%. A decline of 18.18% from the £120 price of the investment will leave the investor with £98.18. Over the cumulative two-day period, the investment would be down 1.82%, even although the underlying index is now at the original level.

Day trading
Where investors, many of whom are professional, try to make money from buying and selling shares throughout the day, netting off the transactions by the end of the day.
In stock market terms this means a sale or purchase of securities. Also known as a bargain, transaction or trade.
Dealt status
Orders that have been dealt in the market and processed through our order entry system.
A loan raised by a company, paying a fixed rate of interest and secured on the assets of the company.
Defensive stock
Stock of a company with continuous dividend payments, which has demonstrated relatively stable earnings despite poor economic conditions.
The removal of a security's listing on a stock exchange. This is done when the security no longer exists, the company is bankrupt, the public distribution of the security has dropped to an unacceptably low level, or the company has failed to comply with the terms of its listing.
Dematerialised (form)
Circumstances where securities are held in a book entry transfer system with no certificates as these are held in electronic accounts within CREST.
Conversion process by which mutually held organisations become publicly listed companies. Examples include building societies, such as the Halifax, converting to banks.

A financial product whose price is dependent upon or derived from one or more underlying assets, e.g. stocks, bonds, commodities, indices etc. The derivative itself is simply a contract between two or more parties. Most derivatives are characterised by high leverage.
Dilution Levy
A charge that fund managers can choose to apply to cover any dealing or other costs they may incur when buying or selling units in their fund. The fund manager can choose to charge this Dilution Levy to the fund itself or to the actual buyers and sellers of the fund. If a Fund Manager does choose to charge a Dilution Levy it will appear as a separate, explicit charge on the contract note.
Directors' dealing
Any share transaction, undertaken by the Director of the company in which they are employed.
When the market price of a newly issued stock is lower than the issue price.
Discretionary investment management
The engagement of an investment adviser who has complete discretion (often within prescribed limits) to manage and invest your capital without reference to you other than at agreed reporting dates. Also called Discretionary Management.
Income generated by a unit trust or OEIC, which can be either paid out to the investor or reinvested within the fund (see also income or accumulation units). Frequency of distributions may vary from fund to fund.
A risk management technique that mixes a wide variety of investments within a portfolio. The rationale behind this technique contends that a portfolio of different kinds of investments will, on average, yield higher returns and pose a lower risk than any individual investment found within the portfolio.
Payment made out of a company's post-tax profits and distributed to its shareholders at the discretion of the company’s board of directors. This is usually expressed as pence (per share).
Dividend cover
The indicator as to the rate that the company may be paying its dividends out of its earnings, and its ability to continue to pay dividends at that rate.
Dividend pay date
The date on which the dividend is paid.
Dividend yield
The dividend yield measures the rate of return that an investor gets by comparing the cost of the shares with the dividend paid. You can work it out as follows; dividend per share divided by market price per share times 100.
Dow-Jones Industrial Index
The major benchmark measure of the performance of the New York Stock Exchange.
Department of Trade and Industry. Government department responsible for some commercial matters, including monopolies and prosecution of insider dealing.
Dual pricing
Two prices quoted by a unit trust manager - the lower at which investors can sell and the higher price at which they can buy.

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