What Is Diluted Normalized Earnings Per Share? Diluted normalized earnings per share shows a company’s profit per share after stripping out one-off income or expenses and assuming all stock that could potentially be issued has been. The metric is calculated by taking profit (less one-time earnings) and dividing by the sum of outstanding common shares
What Is Depreciated Cost? Depreciated cost is the value of a fixed asset minus all of the accumulated depreciation that has been recorded against it. In a broader economic sense, the depreciated cost is the aggregate amount of capital that is “used up” in a given period, such as a fiscal year. The depreciated cost can
What Is Depreciation? The term depreciation refers to an accounting method used to allocate the cost of a tangible or physical asset over its useful life. Depreciation represents how much of an asset’s value has been used. It allows companies to earn revenue from the assets they own by paying for them over a certain
What Is Depreciation, Depletion, and Amortization (DD&A)? Depreciation, depletion, and amortization (DD&A) is an accounting technique that enables companies to gradually expense various different resources of economic value over time in order to match costs to revenues. Depreciation spreads out the cost of a tangible asset over its useful life, depletion allocates the cost of
What Is Depreciation Recapture? Depreciation recapture is the gain realized by the sale of depreciable capital property that must be reported as ordinary income for tax purposes. Depreciation recapture is assessed when the sale price of an asset exceeds the tax basis or adjusted cost basis. The difference between these figures is thus “recaptured” by
What Is Depressed? Depressed refers to a state or condition of a market, product, currency, or security characterized by slumping prices, low volume, and lack of buyers. It usually represents a prolonged period of low prices and activity. The term may also be used in the context of the broader economy, in which case it generally
What Is a Depression? A depression is a severe and prolonged downturn in economic activity. In economics, a depression is commonly defined as an extreme recession that lasts three or more years or which leads to a decline in real gross domestic product (GDP) of at least 10%. in a given year. Depressions are relatively
What Is Depth of Market (DOM)? Depth of market (DOM) is a measure of the supply and demand for liquid, tradeable assets. It is based on the number of open buy and sell orders for a given asset such as a stock or futures contract. The greater the quantity of those orders, the deeper or
What Is Deregulation? Deregulation is the reduction or elimination of government power in a particular industry, usually enacted to create more competition within the industry. Over the years, the struggle between proponents of regulation and proponents of government nonintervention has shifted market conditions. Historically, finance has been one of the most heavily scrutinized industries in
What Is a Derivative? The term derivative refers to a type of financial contract whose value is dependent on an underlying asset, group of assets, or benchmark. A derivative is set between two or more parties that can trade on an exchange or over-the-counter (OTC). These contracts can be used to trade any number of
