Financial Tutorial  
Discuss in our Free Forum

FINANCIAL DICTIONARY & GLOSSARY: DEP - DI
All information are subject to terms of use

deposit account - pays interest, but usually cannot be used for paying checks; notice is often required to withdraw money.

depreciate - to lose value, or decline in price.

depreciation - the reduction in value of a fixed asset due to use, obsolescence, etc. (by a charge against profits); or the loss of value of a currency.

depression - a serious, long-lasting recession.

deregulation - the ending or relaxing of legal regulations or restrictions in a particular industry (e.g. the stock exchanges in New York in 1975, in London in 1986).

derivatives - financial instruments such as options that are based on underlying securities.

derived demand - secondary demand: e.g. the demand for industrial goods which itself depends on the demand for consumer goods.

devaluation - when a government or central bank formally decreases the value of its currency under a system of otherwise fixed exchange rates.

diminishing balance method of depreciation - see reducing balance.

method direct cost - see prime cost.

direct costing or variable costing - provides the average variable cost for a product or process (which often depends on the volume manufactured).

direct debit - like a standing order, but the amount is not specified in advance (used to pay telephone bills,…).

direct selling - when manufactures sell directly to retailers, without using wholesalers; or when wholesalers sell directly to the public without using retailers.

direct taxes - are levied on people's incomes and companies' profits.

dirty floating exchange rate - see managed floating.

discount - a price reduction; to sell at a reduced price, in return for the purchase of a large quantity, payment in cash, rapid payment, etc.; or to sell a bill at below its face value.

discount broker - stockbroker who buys and sells for customers at very low commissions.

PREVIOUS PAGE - NEXT PAGE