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Glossary

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There are 5 names in this directory beginning with the letter D.
Dark Pools
Dark pools are private exchanges for trading securities that are not accessible to public investors. Most dark pool trades are large trades made by financial institutions that do not want to publicize their trades, and impact markets through their large trade blocks.

There are various types of dark pools in the market today that differ in trade execution strategy, and their trade schedule timings. Dark pools are heavily used in high-frequency trading which has led to criticism of conflict of interest for dark pool operating overpayment for order flow and priority access to dark pools. Watch Video

 

Diversification
Diversification is a risk management strategy used to lower the risk of any single security in a portfolio while yielding a higher return for the overall portfolio in the long term. To create diversification in their portfolio, investors try to create a portfolio with a mix of asset classes and securities so that they can reduce the correlation of individual securities’ performance and thereby reduce the unsystematic risk of the whole portfolio. Watch Video

 

Dividend
A dividend is a portion of the company’s profit that is disturbed to its shareholders. Dividends are usually managed by the board of directors who issue dividends to investors for choosing to invest their money in the company. Dividend payments often reflect positively on a company which is why when dividends are announced, a company’s stock price usually appreciates.

 

Dividend ETFs
Dividend ETFs are ETFs that invest baskets of high dividend-paying securities. The most common types of dividend-paying securities are dividend-paying common stocks, preferred stocks, or real-estate investment trusts (REIT). These securities can be both U.S. domestic stocks or international securities, as long as they are dividend-payments securities.

 

Dow
The Dow, also known as The Dow Jones Industrial Average, is a price-weighted stock market index that measures the daily price movements of 30 blue-chip companies with consistently stable earnings. Because of the diversity of companies that make up its index composition, the Dow is widely viewed as a proxy for consensus on the general market economy. Watch Video