What Is a Downgrade? A downgrade is a negative change in the rating of a stock’s expected performance, issued by an analyst for a financial services firm. The analyst is indicating that the company’s future prospects have weakened. Many financial services firms employ analysts to provide research, including rating stocks with a buy, hold, or
What Is DownREIT? DownREIT is a joint endeavor between a real estate owner and a real estate investment trust (REIT) for the purpose of acquiring and controlling real estate. Key Takeaways A DownREIT is a partnership agreement between an REIT and a real estate owner that enables deferring of tax on sale of appreciated real
What Is Downshifting? Downshifting is reducing one’s standard of living for simplicity and improved quality of life. Downshifting assumes a trade-off between money or level of wealth, and quality of life, which relates to well-being. Downshifters believe that through fewer hours of work they can have time to enjoy the important things in life. For
What Is Downside Deviation? Downside deviation is a measure of downside risk that focuses on returns that fall below a minimum threshold or minimum acceptable return (MAR). It is used in the calculation of the Sortino ratio, a measure of risk-adjusted return. The Sortino ratio is like the Sharpe ratio, except that it replaces the
What is a Downside Tasuki Gap? A Downside Tasuki Gap is a candlestick formation that is commonly used to signal the continuation of the current downtrend. The pattern is formed when a series of candlesticks have demonstrated the following characteristics: 1. The first candle is red or back (down) within an existing downtrend.2. The second candle gaps
What Is Downsizing? Downsizing is the permanent reduction of a company’s labor force through the elimination of unproductive workers or divisions. Downsizing is a common organizational practice, usually associated with economic downturns and failing businesses. Cutting jobs is the fastest way to cut costs, and downsizing an entire store, branch or division also frees assets
DEFINITION of Downstream Guarantee Downstream guarantee (or guaranty) is a pledge placed on a loan on behalf of the borrowing party by the borrowing party’s parent company or stockholder. By guaranteeing the loan for its subsidiary company, the parent company provides assurance to the lenders that the subsidiary company will be able to repay the
What Is a Downtick? A downtick is a transaction for a financial instrument that occurs at a lower price than the previous transaction. A downtick occurs when a stock’s price decreases in relation to the last trade. Key Takeaways A downtick refers to a transaction of a financial instrument that occurs at a price lower than
What Is a Downtrend? A downtrend is a gradual reduction in the price or value of a stock or commodity, or the activity of a financial market. A downtrend can be contrasted with an uptrend. Key Takeaways Downtrends are characterized by lower peaks and troughs and mimic changes in the perception of investors.A downtrend is
What Is the Dow Theory? The Dow Theory is a financial theory that says the market is in an upward trend if one of its averages (e.g., industrials or transportation) advances above a previous important high and is accompanied or followed by a similar advance in another average. For example, if the Dow Jones Industrial
