What Is a Drop-Dead Fee? A drop-dead fee is a fee paid by a borrower to a lender when a transaction, usually an acquisition, financed by the latter falls through. The term is of British origin and is mainly applied in the United Kingdom. Key Takeaways A drop-dead fee is a fee paid by a
What Is a Drop Lock? A drop lock is an arrangement whereby the interest rate on a floating-rate note or preferred stock becomes fixed if it falls to a specified level. Above that level the rate floats based on a benchmark market rate, typically with a semiannual reset. In other words, drop lock bonds marry
What Is a Drug? A drug, or pharmaceutical, is a substance used to prevent or cure a disease or ailment or to alleviate its symptoms. In the U.S., some drugs are available over-the-counter while others can be purchased only with a doctor’s prescription. Drugs can be taken orally, via a skin patch, by injection, or
What Is a Dry Bulk Commodity? A dry bulk commodity is a raw material that is shipped in large unpackaged parcels. Dry bulk consists of mostly unprocessed materials that are destined to be used in the global manufacturing and production process. The commodities, which can include grain, metal, and energy materials, are transported long distances
What Is a Dry Closing? A dry closing is a type of real estate closing in which the entire closing requirements are fulfilled except for the disbursement of funds. A real estate closing is the completion of a transaction involving the sale or exchange of real estate. In a dry closing, all involved parties agree
A dry hole is a business venture that ends up being a loss. The buzz word “dry hole” was originally used in oil exploration to describe a well where no significant reserves of oil were found. This term is now often used to describe any fruitless commercial initiative. Breaking Down Dry Hole Newer businesses often
What Is the Debt-Service Coverage Ratio (DSCR)? The debt-service coverage ratio applies to corporate, government, and personal finance. In the context of corporate finance, the debt-service coverage ratio (DSCR) is a measurement of a firm’s available cash flow to pay current debt obligations. The DSCR shows investors whether a company has enough income to pay
What Is Days Sales Outstanding (DSO)? Days sales outstanding (DSO) is a measure of the average number of days that it takes a company to collect payment for a sale. DSO is often determined on a monthly, quarterly, or annual basis. To compute DSO, divide the average accounts receivable during a given period by the
What Is the Dow 30? The Dow 30, commonly referred to as the “Dow,” or the “Dow Jones Industrial Average,” was created by Wall Street Journal editor Charles Dow and got its name from Dow and his business partner, Edward Jones. The stock market index was developed as a simple means of tracking U.S. stock market
What Is the Dow Jones Global Titans 50 Index? The term Dow Jones Global Titans 50 Index refers to an index that consists of 50 of the world’s largest multinational corporations. These companies represent a number of different industries including technology, financials, health care, and consumer goods, and must generate a percentage of their revenue
