What Are Consumer Durables? Consumer durables, also known as durable goods, are a category of consumer goods that do not wear out quickly and therefore do not have to be purchased frequently. They are a part of core retail sales data and considered durable because they last for at least three years, as defined by
What Is Duration? Duration can measure how long it takes, in years, for an investor to be repaid a bond’s price by the bond’s total cash flows. Duration can also measure the sensitivity of a bond’s or fixed income portfolio’s price to changes in interest rates. A bond’s duration is easily confused with its term
What Is a Dragonfly Doji Candlestick? A Dragonfly Doji is a type of candlestick pattern that can signal a potential reversal in price to the downside or upside, depending on past price action. It’s formed when the asset’s high, open, and close prices are the same. The long lower shadow suggests that there was aggressive
What Are Dram Shop Laws? Dram shop laws hold a business liable for serving or selling alcohol to minors or intoxicated persons who later cause death, injury, or property damage to another person. These laws were first introduced in the 18th century during the temperance movements that ultimately led to the prohibition of alcohol in
What Is a Drawdown? A drawdown is a peak-to-trough decline during a specific period for an investment, trading account, or fund. A drawdown is usually quoted as the percentage between the peak and the subsequent trough. If a trading account has $10,000 in it, and the funds drop to $9,000 before moving back above $10,000
What Is a Drawee? Drawee is a legal and banking term used to describe the party that has been directed by the depositor to pay a certain sum of money to the person presenting the check or draft. A typical example is if you are cashing a paycheck. The bank that cashes your check is
What Is a Drawing Account? A drawing account is an accounting record maintained to track money and other assets withdrawn from a business by its owners. A drawing account is used primarily for businesses that are taxed as sole proprietorships or partnerships. Owner withdrawals from businesses that are taxed as separate entities must be accounted
What Is a Dread Disease Rider? A dread disease rider, also called a critical illness rider, is an addition to a life insurance policy that provides the policyholder a percentage of the death benefit if they are diagnosed with a severe disease. The rider specifies which illnesses the policy will cover and the payout is used to offset
What Is Do It Right The First Time (DRIFT)? Do It Right The First Time (DRIFT) is a managerial accounting technique or practice that centers around decreasing waste and increasing efficiency in the production process. Do It Right The First Time is part of inventory management, whereby only the inventory materials that are needed are
What Is Drilling Mud? Drilling mud, also called drilling fluid, aids in the process of drilling a borehole into the earth. Such holes are drilled for oil and gas extraction, core sampling, and other purposes. Key Takeaways Drilling mud is used during the oil and gas extraction method and helps in the process of drilling a
