What Is a Discretionary Beneficiary? Discretionary beneficiaries are individuals or entities that a grantor names in a trust, life insurance policy, or retirement plan who will only receive their distributions at a time that has been deemed as appropriate, such as if they pass certain milestones in age or education. While they may apply for
What Is Discretionary Cash Flow? Discretionary cash flow is the money left over once all capital projects with positive net present values have been funded and required payments have been made. The payments can be operational costs, such as wages. The discretionary cash flow—or money left over—can be used to pay cash dividends to stockholders
What Is Discretionary Income? Discretionary income is the amount of an individual’s income that is left for spending, investing, or saving after paying taxes and paying for personal necessities, such as food, shelter, and clothing. Discretionary income includes money spent on luxury items, vacations, and nonessential goods and services. Because discretionary income is the first
What Is Discretionary Investment Management? Discretionary investment management is a form of investment management in which buy and sell decisions are made by a portfolio manager or investment counselor for the client’s account. The term “discretionary” refers to the fact that investment decisions are made at the portfolio manager’s discretion. This means that the client
What Are Diseconomies of Scale? Diseconomies of scale happen when a company or business grows so large that the costs per unit increase. It takes place when economies of scale no longer function for a firm. With this principle, rather than experiencing continued decreasing costs and increasing output, a firm sees an increase in costs when
What Is Disguised Unemployment? Disguised unemployment exists when part of the labor force is either left without work or is working in a redundant manner such that worker productivity is essentially zero. It is unemployment that does not affect aggregate output. An economy demonstrates disguised unemployment when productivity is low and too many workers are
What Is Dishonor? Dishonor, in the business world, is the action of refusing to fulfill contractual obligations or pay a charge. Dishonoring a transaction can occur if a seller does not deliver promised goods or when a buyer does not provide payment for goods received. In contracts, a party may dishonor the agreement by altering
What Is Disinvestment? Disinvestment is the action of an organization or government selling or liquidating an asset or subsidiary. Absent the sale of an asset, disinvestment also refers to capital expenditure (CapEx) reductions, which can facilitate the re-allocation of resources to more productive areas within an organization or government-funded project. Whether disinvestment results in the
What Is Dispersion? The field of statistics is used across every sector and industry to help people better understand, and predict, potential outcomes. In finance, investors often turn to statistics to gain a sense of how returns on certain assets, or groups of assets, could be distributed. This range of possible investment returns is called
What Is Display Book? Display Book was a proprietary tracking tool for the New York Stock Exchange (NYSE) which was used to display, record and execute market orders. Trade and order data included the order type, price, time and quantity for a specific security. Specialists on an NYSE-affiliated exchange utilized the system for each security they traded. NYSE replaced Display
