What Is the Dow Jones Utility Average (DJUA)? The Dow Jones Utility Average (DJUA) is one of the Dow Jones index groups that tracks the performance of a small group of prominent utility companies. It is a price-weighted average of 15 utility stocks traded in the United States. Dow Jones first created the DJUA back
What Is the Wilshire Mid-Cap Index? The Dow Jones Wilshire Mid-Cap Index is a mid-cap benchmark index maintained by Wilshire Indexes, launched in 1996. The Wilshire US Mid-Cap Index is a float-adjusted, market capitalization-weighted index of the issues ranked between 500 and 1,000 by market capitalization of the Wilshire 5000 Total Market Index (Wilshire 5000). Mid-cap (or
What Is Don’t Know (DK)? “Don’t know (DK)” is a slang expression for an out trade that is used when there is a discrepancy in the details of a trade. Also known as a “DK’d trade,” the expression refers to a situation where at least one of the parties involved claims to lack knowledge of
What Is Doctor Copper? The term Doctor Copper is market lingo for this base metal that is reputed to have a “Ph.D. in economics” because of its ability to predict turning points in the global economy. Because of copper’s widespread applications in most sectors of the economy—from homes and factories to electronics and power generation and
What Is the Doctrine Of Utmost Good Faith? The doctrine of utmost good faith, also known by its Latin name uberrimae fidei, is a minimum standard, legally obliging all parties entering a contract to act honestly and not mislead or withhold critical information from one another. It applies to many everyday financial transactions and is one of
What Is Documentary Collection? Documentary collection is a form of trade finance in which an exporter is paid for its goods by an importer after the two parties’ banks exchange the required documents. The exporter’s bank collects funds from the importer’s bank in exchange for documents releasing title to the shipped merchandise, usually after the
What Is the Dodd-Frank Wall Street Reform and Consumer Protection Act? The Dodd-Frank Wall Street Reform and Consumer Protection Act is legislation that was passed by the U.S. Congress in response to financial industry behavior that led to financial crisis of 2007–2008. It sought to make the U.S. financial system safer for consumers and taxpayers.
What Is a Diversification Acquisition? Diversification acquisition is a corporate action whereby a company takes a controlling interest in another company to expand its product and service offerings. One way to determine if a takeover comes under diversification acquisition is to look at the two companies Standard Industrial Classification (SIC) codes. When the two codes differ, it means
What Is a Diversified Common Stock Fund? A diversified common stock fund is a particular type of investment fund that seeks to invest its assets in a relatively large number and variety of common stocks. A diversified common stock fund tends to comprise a portfolio of stocks in the range of 100 or more issues. These funds
What Is a Diversified Company? A diversified company is a type of company that has multiple unrelated businesses or products. Unrelated businesses are those that: Require unique management expertiseHave different end customersProduce different products or provide different services One of the benefits of being a diversified company is that it buffers a business from dramatic fluctuations
