What Is a Dead Cat Bounce? A dead cat bounce is a temporary, short-lived recovery of asset prices from a prolonged decline or a bear market that is followed by the continuation of the downtrend. Frequently, downtrends are interrupted by brief periods of recovery—or small rallies—during which prices temporarily rise. The name “dead cat bounce”
What Is Deadweight Loss? A deadweight loss is a cost to society created by market inefficiency, which occurs when supply and demand are out of equilibrium. Mainly used in economics, deadweight loss can be applied to any deficiency caused by an inefficient allocation of resources. Price ceilings, such as price controls and rent controls; price
What is Dealer Financing Dealer financing is a type of loan that is originated by a retailer to its customers and then sold to a bank or other third-party financial institution. The bank purchases these loans at a discount and then collects principle and interest payments from the borrower. This is also called an indirect
What Is a Dealer Option? A dealer option is a contract issued on the physical inventory of a commodity. A dealer option is typically issued by companies that buy, sell, or otherwise use a commodity in conducting business. This type of option is not traded on an exchange. Rather, it is traded as an over-the-counter (OTC)
What Is a Dealer Market? A dealer market is a financial market mechanism wherein multiple dealers post prices at which they will buy or sell a specific security or instrument. In a dealer market, a dealer (who is designated as a “market maker”) provides liquidity and transparency by electronically displaying the prices at which it is
What Is a Dangerous Asset? A dangerous asset is a piece of property or investment, which poses a risk of liability to its owner. Liability means that the owner of the dangerous asset could be sued or found legally liable for someone getting hurt. The term dangerous asset usually applies to a physical asset, such as
Daniel Kahneman is a professor emeritus of psychology and public affairs at Princeton University. Despite having reportedly never taken a course in economics, he is widely regarded as a pioneer of modern behavioral economics. In 2002, he was awarded the Nobel Memorial Prize in Economic Sciences for his research on prospect theory, which deals with
What Is Dark Pool Liquidity? Dark pool liquidity is the trading volume created by institutional orders executed on private exchanges; information about these transactions is mostly unavailable to the public. The bulk of dark pool liquidity is created by block trades facilitated away from the central stock market exchanges and conducted by institutional investors (primarily
What Is Dark Money? Dark money refers to contributions to political groups that are received from donors whose identities are not disclosed and that are used to influence elections. Dark money can have a significant influence on elections, particularly when used by “independent expenditure” groups—generally characterized as Super PACs—that are legally permitted to receive and
What Is a Darknet Market? Darknet markets are dark web black markets that offer illicit goods for sale, often using cryptocurrencies as a method of payment. Although some products for sale are legal, illicit goods such as drugs, stolen information, and weapons are common items in these markets. The transactions in darknet markets are anonymized.
