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
What Is a Derivatives Time Bomb? “Derivatives time bomb” is a descriptive term for possible market mayhem if there is a sudden, as opposed to orderly, unwinding of massive derivatives positions. “Time bomb” as a reference to derivatives is a moniker attributable to Warren Buffett. In his 2002 Chairman’s Letter for Berkshire Hathaway, he said, “We view them as
What Is Derived Demand? Derived demand—in economics—is the demand for a good or service that results from the demand for a different, or related, good or service. It is a demand for some physical or intangible thing where a market exists for both related goods and services in question. Derived demand can have a significant
What Is a Descending Triangle? A descending triangle is a chart pattern used in technical analysis created by drawing one trend line connecting a series of lower highs and a second horizontal trend line connecting a series of lows. A regular descending triangle pattern is commonly considered a bearish chart pattern or a continuation pattern with
What Are Descriptive Statistics? Descriptive statistics are brief informational coefficients that summarize a given data set, which can be either a representation of the entire population or a sample of a population. Descriptive statistics are broken down into measures of central tendency and measures of variability (spread). Measures of central tendency include the mean, median
What Is Descriptive Analytics? Descriptive analytics is the interpretation of historical data to better understand changes that have occurred in a business. Descriptive analytics describes the use of a range of historic data to draw comparisons. Most commonly reported financial metrics are a product of descriptive analytics, for example, year-over-year pricing changes, month-over-month sales growth, the
