D

• Debt Financing

  When a firm raises money for working capital or capital expenditures by selling bonds, bills, or notes to investors.

• Debt-to-equity ratio

  A financial ratio that compares a company's total liabilities to its shareholder equity.

• Dilution

  The reduction in the ownership percentage of a share of stock caused by the issuance of new stock.

• Down Round

  A round of financing where investors purchase stock from a company at a lower valuation than earlier investors.

• Due Diligence

  The process of thoroughly investigating and verifying the details of a business/investment opportunity; by reviewing financial statements, market analysis, and other relevant information. It is typically conducted by a potential investor or acquirer in order to assess the risks and potential rewards of the opportunity.

• Debt Consolidation

  Help you reduce your debt load by reducing the total number of creditors an invetsor owes

• Default Risk

  The risk a lender takes that a borrower will not make the required payments on a debt obligation; Lenders and investors are exposed to default risk in virtually all forms of credit offerings. A higher level of default risk typically requires the borrower to pay a higher interest rate. The risk that a borrower may be unable to repay their debt obligations.

• Derivatives

  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). Financial contracts whose value is derived from an underlying asset, such as options, futures, swaps, etc.

• Development capital

  A form of business funding which helps established businesses to scale up, increase their revenues and build up their customer base. It is typically provided by an investor in exchange for an equity stake in the business.

• Discounted Cash Flow (DCF)

  To a valuation method that estimates the value of an investment using its expected future cash flows. DCF analysis attempts to determine the value of an investment today, based on projections of how much money that investment will generate in the future.

• Distressed securities

  Financial assets that are in a state of financial distress, bankruptcy, or high debt. They are considered riskier and have lower value than similar assets.

• Dividend Payout Ratio

  The percentage of a company's earnings that is paid out as dividends to shareholders.

• Dividends

  Payments made to shareholders from a company's profits.

• Dollar-Cost Averaging

  A strategy that can make it easier to deal with uncertain markets by making purchases automatic. It also supports an investor's effort to invest regularly. Investing a fixed amount of money at regular intervals, regardless of market conditions, to reduce the impact of market volatility.

• Dry powder

  Cash or marketable securities that are low-risk and highly liquid and convertible to cash. Funds held as dry powder are kept in reserve to be deployed in case of emergency. The term is often used in terms of venture capitalists, where dry powder allows them to invest in opportunities as they arise.

• Direct Investing

  The act of buying a security directly from the issuer to hold for investment purposes.

• Deal Flow

  The rate at which business proposals and investment pitches are being received.

• Drag-Along Rights

  A clause in a shareholders’ agreement that allows majority shareholders to force minority shareholders to join in the sale of a company.

• Downside Protection

  Various methods an investor uses to prevent a decrease in the value of the investment.