Disclosures (Deposit)Certain information that federal and state laws require depository financial institutions give to depositors relative to the terms of the deposit account.
DiscountWhen bonds sell for less than their face value, they are said to be selling at a discount.
Discount brokerage firmDiscount brokerage firms charge lower commissions than full-service brokerage firms when they execute investors' buy and sell orders but may provide fewer…
Discount PointSome lenders require you to prepay a portion of the interest due on your mortgage as a condition of approving the loan.
Discount PointsAmount paid to the lender by the borrower or seller to decrease or "buy down" the borrower's interest rate.
Discount rateThe discount rate is the interest rate the Federal Reserve charges on loans it makes to banks and other financial institutions.
Discretionary accountA discretionary account is a type of brokerage account in which clients authorize their brokers to buy and sell securities on their behalf without prior…
DisinflationDisinflation is a slowdown in the rate of price increases that historically occurs during a recession, when the supply of goods is greater than the demand…
Dispute resolutionDispute resolution - sometimes called alternative dispute resolution - refers to methods of resolving conflicts between parties or individuals that…
DistributionThe sale of securities. Also refers to a sum payable to shareholders representing their share of profits.
DiversificationThe investment in a number of different securities. To reduce the risk of loss inherent in investing.
Diversified Mutual FundThis is a mutual fund that does not have a stated policy of concentrating its investments in one industry, business, single country other than the U.S.
Dividend payout ratioYou can calculate a dividend payout ratio by dividing the dividend a company pays per share by the company's earnings per share.
Dividend reinvestment plan (DRIP)Many publicly held companies allow shareholders to reinvest dividends in company stock or buy additional shares through dividend reinvestment plans, or…
Dividend yieldIf you own dividend-paying stocks, you figure the current dividend yield on your investment by dividing the dividend being paid on each share by the…
DividendsPayments in cash or other assets, excluding the corporation's own stock, made by corporations located in the United States and abroad to stockholders who…
Divorce Decreelegal ruling by a court which, among other things, assigns obligations for the payment of various debts.
Dogs of the DowIf you follow a Dogs of the Dow investment strategy, you buy the ten highest-yielding stocks in the Dow Jones Industrial Average (DJIA) on the first of…
Dollar cost averagingA principle of investing where equal dollar amounts are invested in a share or unit at regular intervals in the hope of reducing the average cost by…
DomicileYour domicile is your permanent residence, which you demonstrate by using it as your primary home, holding a driver's license using that address, and…
Domini Social Index 400The Domini Social Index 400 is a market capitalization weighted index that tracks the performance of companies that meet a wide range of social and…
Double bottomDouble bottom is term that technical analysts use to describe a stock price pattern that, when depicted on a chart, shows two drops to the same dollar…
Double topDouble top is term that technical analysts use to describe a stock price pattern that, when depicted on a chart, shows two gains to the same dollar level…
Dow Jones 65 Composite AverageThis composite of three Dow Jones averages tracks the stock performance of 65 companies in two major market sectors and the benchmark DJIA.
Dow Jones Industrial Average (DJIA)The Dow Jones Industrial Average (DJIA), sometimes referred to as the Dow, is the best-known and most widely followed market indicator in the world.
Dow Jones Transportation AverageThe Dow Jones Transportation Average tracks the performance of the stocks of 20 airlines, railroads, and trucking companies.
Dow Jones Utility AverageThe Dow Jones Utility Average tracks the performance of the stocks of 15 gas, electric, and power companies, and is one of the components of the Dow Jones…
Dow Jones Wilshire 5000 IndexThe Dow Jones Wilshire 5000 is a market capitalization weighted index of approximately 7,000 stocks.
Dow theoryDow theory maintains that major market trends depend on how the Dow Jones Industrial Average (DJIA) and the Dow Jones Transportation Average behave.
Down PaymentA down payment is the amount, usually stated as a percentage, of the total cost of a property that you pay in cash as part of a real estate transaction.
DowntickWhen a security sells at a lower price than its previous sale price, the drop in value is called a downtick.
DraftA signed, written order by which one party (the drawer) instructs another party (the drawee) to pay a specified sum to a third party (the payee), at sight…
DraweeThe person (or bank) who is expected to pay a check or draft when it is presented for payment.
Drawee InstitutionThe bank or credit union upon which a check or draft is drawn.
DrawerThe person who writes a check or draft instructing the drawee to pay someone else.
Due dateThe due date is the date by which we must receive your payment in order for it to be on time. Your bill lists the due date.
DurationIn simplified terms, a bond's duration measures the effect that each 1% change in interest rates will have on the bond's market value.
Dutch auctionA Dutch auction opens at the highest price and drops gradually until there's a buyer willing to pay the amount being asked.
Early withdrawalIf you withdraw assets from a fixed-term investment, such as a certificate of deposit (CD), before it matures, it is considered an early withdrawal.
Early Withdrawal PenaltyA charge that is given to holders of fixed –term investments if they withdraw their money before maturity.
Earnable CompensationA rate of compensation purely for working one’s full normal time, not amounts paid on a cash basis.
Earned IncomeEarned income is contrasted with investment income. It includes wages, salaries, honoraria, commission, professional fees, and other forms of compensation…
Earned Income Credit (EIC)(EIC)The earned income tax credit (EIC) reduces the income tax of that certain low-income taxpayers would otherwise owe.
Earned ServicePaid employment as an employee during which regular contributions are paid to the Retirement Systems.
Earnest MoneyMoney given to a seller by a buyer to demonstrate the buyer’s good faith. If the deal falls through, the deposit is usually forfeited.
EarningsIn the case of an individual, earnings include salary and other compensation for work you do, as well as interest, dividends, and increases in the value…
Earnings estimateProfessional stock analysts use mathematical models that weigh companies' financial data to predict their future earnings per share on a quarterly…
Earnings momentumWhen a company's earnings per share grow from year to year at an ever-increasing rate, that pattern is described as earnings momentum.
Earnings Per Share (EPS)Earnings per share (EPS) is calculated by dividing a company's total earnings by the number of outstanding shares.
Earnings surpriseWhen a company's earnings report either exceeds or fails to meet analysts' estimates, it's called an earnings surprise.
EBITDAEarnings before interest, taxes, depreciation, and amortization are commonly shortened to EBITDA.
Economic cycleAn economic cycle is a period during which a country's economy moves from strength to weakness and back to strength.
Economic indicatorEconomic indicators are statistical measurements of current business conditions.
EconomyThe way a country manages its money and resources (such as workers and land) to produce, buy, and sell goods and services.
Education savings account (ESA)You can put up to $2,000 a year into a Coverdell education savings account (ESA) that you establish in the name of a minor child.
Effective tax rateYour effective tax rate is the rate you actually pay on all of your taxable income.
Efficient marketWhen the information that investors need to make investment decisions is widely available, thoroughly analyzed, and regularly used, the result is an…
Efficient market theoryProponents of the efficient market theory believe that a stock's current price accurately reflects what investors know about the stock.
Electronic BankingA service that allows an account holder to obtain account information and manage certain banking transactions through a personal computer via the…
Electronic benefits transfer (EBT)Electronic benefits transfer, or EBT, is a system through which recipients of certain government benefits receive and spend funds electronically, using a…
Electronic bill paymentIf you have an electronic bill payment arrangement with your bank, your bills are sent to an account you designate and the bank pays them automatically…
Electronic bill presentmentIf you pay bills online, you may be able to take advantage of electronic bill presentment, a paper-free method of reporting your outstanding charges and…
Electronic Check ConversionElectronic check conversion is a process in which your check is used as a source of information-for the check number, your account number, and the number…
Electronic communications network (ECN)An ECN is an alternative securities trading system that collects, displays, and executes orders electronically without a middleman, such as a specialist…
electronic filing (e-file)The transmission of tax information directly to the IRS using telephones or computers.
Electronic funds transferElectronic funds transfer (EFT) is the means by which financial institutions exchange billions of dollars every day without the physical movement of any…
Electronic Funds Transfer (EFT)(EFT)The transfer of money between accounts by consumer electronic systems-such as automated teller machines (ATMs) and electronic payment of bills-rather than…
Electronic Funds Transfer Act (EFTA)(EFTA)Signed by President Jimmy Carter in 1978, the act is intended to protect individual consumers engaging in electronic fund transfers (EFTs).
electronic preparationElectronic preparation means that tax preparation software and computers are used to complete tax returns.
Electronic Return Originator (ERO)(ERO)The Authorized IRS e-file Provider that originates the electronic submission of an income tax return to the IRS.
Electronic Signature (or eSignature)An indication on an electronic record indicating that the signer approves or authorizes the record under the terms stated after going through an…
Elimination PeriodIf you have disability insurance or long-term care insurance, there's a waiting period, called the elimination period, from the time you become disabled…
EmbezzlementIn most States, embezzlement is defined as theft/larceny of assets (money or property) by a person in a position of trust or responsibility over those…
Emergency Economic Stabilization Act (EESA)(EESA)A 2008 statute that authorized the U.S. Department of the Treasury to undertake specific measures to provide stability and prevent disruption in the…
Emergency fundAn emergency fund is designed to provide financial back-up for unexpected expenses or for a period when you aren't working and need income.
Emergency Home Finance Act of 1970The Emergency Home Finance Act of 1970 created Freddie Mac and authorized it to create a secondary market for conventional mortgages.
Emerging marketCountries in the process of building market-based economies are broadly referred to as emerging markets.
Emerging markets fundEmerging markets mutual funds invest primarily in the securities of countries in the process of building a market-based economy.
employeeWorks for an employer. Employers can control when, where, and how the employee performs the work.
Employee Retirement Income Security Act (ERISA)This comprehensive law, best known by the acronym ERISA, governs qualified retirement plans, including most private-company defined benefit and defined…
Employee stock ownership plan (ESOP)An ESOP is a trust to which a company contributes shares of newly issued stock, shares the company has held in reserve, or the cash to buy shares on the…
Employer sponsored retirement planEmployers may offer their employees either defined benefit or defined contribution retirement plans, or they may make both types of plans available.
EncodingThe process used to imprint or inscribe MICR characters on checks, deposits, and other financial instruments.
End ReviewA reviewer assisting another reviewer may End Review to signify that the reviewer has completed review of a financial disclosure report.
Enhanced index fundAn enhanced index fund chooses selectively among the stocks in a particular index in order to produce a slightly higher return.
Equal Credit Opportunity Act (ECOA)(ECOA)Prohibits creditors from discriminating against credit applicants on the basis of race, color, religion, national origin, sex, marital status, age, or…
EquityAnother word for "stock." It represents an ownership interest by shareholders in a corporation.
Equity fundA mutual fund whose portfolio consists primarily of common and/or preferred stock.
Equity strippingThe lender encourages you to borrow heavily from the equity in your home (the amount you own free and clear of your mortgage) as an easy way to get…
Equivalent taxable yieldWhile taxable bonds normally pay higher interest rates than tax-exempt bonds, they sometimes provide a lower overall yield.
Error ResolutionThe required process for resolving errors involving electronic transfers to and from deposit accounts
EscheatReversion of real or personal property to the State when 1) a person dies without leaving a will and has no heirs, or 2) when the property (such as a bank…
EscrowA financial instrument held by a third party on behalf of the other two parties in a transaction.
Escrow AccountAn account that serves a specific purpose, which ends when a certain condition is met or a certain event occurs.
Escrow agentAn escrow agent is the person or group that holds certain of your assets in an escrow account while you negotiate the final terms of a contract.