Glossary of Investment Terms

d—a deficit, or a loss.

Debenture—a long-term debt instrument that is usually not secured by collateral.

Debt—see Total Debt, Long-Term debt, Debt Due, and Total Debt Due in 5 Years.

Debt Due—the sum of bank notes and other notes payable in 12 months (or less) and that portion of long-term debt due within 12 months. See also Total Debt Due in 5 Years.

Demand Deposits(Bank Industries)—deposits that a depositor may withdraw from his account at any time.

Depletion—an accounting method that allows companies extracting oil, gas, coal, or other minerals to gradually reduce the value of these natural resources.

Deposits (Bank Industries)—total savings (time and demand deposits) entrusted to a bank.

Deposits (Thrift Industry)—funds that have been entrusted to a thrift.

Depreciation—an amount charged against operating profits to reflect the aging of plant and equipment owned by a company.

Diluted Earnings Per Share—net income (with certain possible adjustments) divided by the weighted average number of shares outstanding during a period, assuming any securities or other contracts to issue common stock (including options and warrants) were exercised or converted into common stock. (This calculation is required by the Financial Accounting Standards Board for all years ending after December 15, 1997.)

Dilution—the reduction in earnings associated with the hypothetical conversion of convertible securities into common stock. Also, in the context of a discussion of a merger or acquisition, the reduction in share earnings estimated to occur as a result of the merger or acquisition.

Discount From or Premium Over Net Asset Value (Investment Companies)—the difference between the net asset value and market price, expressed as a percentage of net asset value. If the price exceeds the net asset value, the percentage of the excess or premium is shown with a plus sign.

Disposable Income—a Commerce Department figure published monthly that reflects personal income less income and other taxes. Conceptually, the statistic is designed to reflect funds available for consumers to spend or save.

Dividend—a payout to shareholders determined by a Board of Directors.

Dividend Yield—the year-ahead estimated dividend yield (shown in the top right-hand corner of the Value Line page) is the estimated total of cash dividends to be declared over the next 12 months, divided by the recent price of the stock.

Dividends Declared Per Share—the common dividends per share declared (but not necessarily paid) during the company's operating, fiscal year (displayed within the statistical array of the Value Line page). See also Dividends Paid Per Share.

Dividends Paid Per Share—the common dividends per share paid (but not necessarily declared) during the calendar year (indicated in the quarterly dividend box in the bottom left corner of the Value Line page). See also Dividends Declared Per Share.

Dow Jones Industrial Average—a price-weighted average of 30 of the largest U.S. industrial companies, published by Dow Jones & Co.

Dow Jones Transportation Average—a price-weighted average of 20 of the largest U.S. transportation companies, published by Dow Jones & Co.

Dow Jones Utility Average—a price-weighted average of 15 of the largest U.S. utility companies, published by Dow Jones & Co.

Downstream (Petroleum [Integrated] Industry)—the refining and marketing operations of an integrated oil company, as opposed to exploration and production activities (which are referred to as upstream operations).

Durable Goods—products used by consumers or businesses that are expected to last three or more years. These goods tend to be big-ticket items (for example, automobiles and washing machines). Durable goods sales are generally interest-rate sensitive and correlate with the overall level of economic activity.

Dynamism—see page 22.