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
What Is a Direct Participation Program (DPP)? A direct participation program (DPP) is a pooled entity that offers investors access to a business venture’s cash flow and tax benefits. Also known as a “direct participation plan,” DPPs are non-traded pooled investments in real estate or energy-related ventures over an extended time frame. Key Takeaways A
What Is a Deferred Profit Sharing Plan (DPSP)? A deferred profit sharing plan (DPSP) is a Canadian employer-sponsored profit sharing plan intended to help employees save for retirement. The money in an employee’s DPSP account grows on a tax-deferred basis until withdrawal. Key Takeaways A deferred profit sharing plan (DPSP) is an employer-sponsored profit sharing
What Are Drag-Along Rights? A drag-along right is a provision or clause in an agreement that enables a majority shareholder to force a minority shareholder to join in the sale of a company. The majority owner doing the dragging must give the minority shareholder the same price, terms, and conditions as any other seller. Understanding
What Is a Dragon Bond? A dragon bond is a long-term debt security issued by firms operating in Asian nations (excluding Japan), but denominated in foreign, stable currencies, such as the U.S. dollar (USD) or the Japanese yen (JPY). Key Takeaways Dragon bonds are Asian corporate bonds, ex-Japan, but denominated in a foreign currency.Dragon bonds
What Is the Designated Order Turnaround (DOT (SuperDOT))? Designated order turnaround is an electronic system that increases efficiency by routing orders for listed securities directly to a specialist on the trading floor instead of through a broker. Designated order turnaround is also known as DOT or SuperDOT. Understanding the Designated Order Turnaround (DOT (SuperDOT)) Designated
What is Disclosure of Tax Avoidance Schemes (DOTAS) DOTAS (Disclosure of Tax Avoidance Schemes) is the acronym used for the procedure introduced by the UK government in 2004 aimed at minimizing tax avoidance. Tax avoidance in the UK, unlike tax evasion, is not illegal since it involves using the available tax laws to reduce one’s
