Glossary: D

Daily change

The daily change in the price of a security, i.e. the difference between the most recent price of a security and the previous day's closing price.

Daily high

The highest price reached by a given security or index during a given day.

Daily low

The lowest price reached by a given security or index during a given day.

Daily Official List (DOL)

The daily record setting out the prices of all trades in securities conducted on the Exchange.

Dealer

Dealers buy and sell securities on behalf of the broking firm (or investment bank) itself. Securities bought by the bank may be sold to clients or other firms or becomes part of the bank’s own holdings.

Debenture

These are secured corporate bonds that are used to raise long-term debt capital.

Debt (see Bonds)

Debt Management Office (DMO)

An Executive Agency of the Treasury, which has responsibility for issuing gilts to fund the Government's borrowing activities.

Debt securities

Debentures, debenture or loan stock, bonds and notes whether secured or unsecured.

Default schedule

The schedule that securities of a particular trading service follow during a trading day.

Demutualisation

Demutualisation involves the conversion of a not-for-profit association owned by its members into a for-profit company owned by its shareholders.

Department of Trade and Industry

The government department that aims to generate wealth for everyone in the UK by helping people and businesses to become more productive and successful.

Depository receipt

Commonly known as 'DRs', Depositary Receipts are negotiable certificates that enable domestic investors to own shares in foreign companies. DRs are created when a broker purchases a non-UK company's shares in the home stock market and delivers those shares to the depositary's local custodian bank. The custodian then instructs the depositary bank to issue DRs to the investor. Each DR represents a given number of a company's shares and can trade as freely as any other security in the UK.  Several types of DRs can be listed and traded in London, including Global Depositary Receipts (GDRs) and American Depositary Receipts (ADRs) that are denominated in US dollars.

Derivatives

A derivative is an instrument whose value depends on the performance of an underlying asset or security, which may be a commodity or a financial instrument.

Deutsche Borse

Deutsche Borse operates the Frankfurt Stock Exchange (FWB), the largest of the eight German stock exchanges.

Disciplinary and Appeals Handbook

The Disciplinary and Appeals Handbook as issued by the Exchange from time to time, setting out procedures for issuers in relation to appeals regarding the Exchange's application and interpretation of Standards.

Discretionary

A discretionary broker buys and sells shares on behalf of the client and also has the authority to make investment decisions without the prior approval of the client.

Distorting the market

The market abuse of manipulating market prices by interfering with the normal supply and demand process.

Diversification

The process of investing across a range of investments in order to diversify (or minimise risk). As a result, if one investment performs poorly, better performance from the rest of the portfolio helps to reduce the risk of loss.

Dividend

That part of a company's profits after tax which is distributed to shareholders - usually expressed in pence per share. Also see Scrip Issue.

DSRY

Disaster Recovery

Due diligence

Due diligence is a process carried out by accountants and lawyers when a company is about to acquire another. It involves verifying a company’s liabilities and financial performance.