Dictionary_of_Banking_and_Finance

defalcation

96

deferred tax

a very low price compared to their current market value

‘…as the group’s shares are already widely held, the listing will be via an introduction. It will also be accompanied by a deeply discounted £25m rights issue, leaving the company cash positive’ [Sunday Times]

defalcation / di f l ke ʃ(ə)n/ noun an illegal use of money by someone who is not the owner but who has been trusted to look after it

default /d fɔ lt/ noun 1. a failure to carry out the terms of a contract, especially failure to pay back a debt in default of payment with no payment made the company is in default the company has failed to carry out the terms of the contract 2. by default because no one else will act he was elected by default he was elected because all the other candidates withdrewverb to fail to carry out the terms of a contract, especially to fail to pay back a debt There was a major financial crisis when the bank defaulted. to default on payments not to make payments which are due under the terms of a contract

defaulter /d fɔ ltə/ noun a person who defaults

defeasance /d fi z(ə)ns/ noun a clause (in a collateral deed) which says that a contract or bond or recognisance will be revoked if something happens or if some act is performed

defence /d fens/ noun 1. the action of protecting someone or something against attack The merchant bank is organising the company’s defence against the takeover bid. 2. the act of fighting a lawsuit on behalf of a defen-

dant (NOTE: [all senses] The US spelling is defense.)

defence counsel /d fens kaυnsəl/ noun a lawyer who represents the defendant in a lawsuit

defence document /d fensdɒkjυmənt/ noun a document pub-

lished by a company which is the subject of a takeover bid, saying why the bid should be rejected

defend /d fend/ verb to fight to protect someone or something that is being attacked The company is defending itself against the takeover bid. They hired the best lawyers to defend them against the tax authorities. to defend

a lawsuit to appear in court to state your case when accused of something

defendant /d fendənt/ noun a person against whom a legal action is taken or who is accused of doing something to harm someone (NOTE: The other side in

a case is the claimant.)

defended takeover /d fend dte kəυvə/ noun same as contested

takeover

defensive shares /d fens v ʃeəz/, defensive stocks /d fens v stɒks/

plural noun shares which are not likely to fall in value because they are in stable market sectors, and which are therefore bought as protection against potential losses in more speculative investments

defer /d f% / verb to put back to a later date, to postpone We will have to defer payment until January. The decision has been deferred until the next meeting. (NOTE: deferring – deferred)

deferment /d f% mənt/ noun the act of leaving until a later date deferment of payment deferment of a decision

deferral /d f% rəl/ noun a postponement, a putting back to a later date tax deferral

deferred /d f% d/ adjective put back to a later date

deferred coupon note /d f% dku pɒn nəυt/ noun a bond where the

interest is not paid immediately, but only after a certain date

deferred creditor /d f% d kred tə/ noun a person who is owed money by a bankrupt but who is paid only after all other creditors

deferred equity /d f% d ekw ti/ noun a share ownership at a later date (i.e. as part of convertible loan stock)

deferred interest bond /d f% dntrəst bɒnd/ noun same as deferred

coupon note

deferred payment /d f% dpe mənt/ noun 1. money paid later

than the agreed date 2. payment for goods by instalments over a long period

deferred shares /d f% d ʃeəz/, deferred stock /d f% d stɒk/ noun

shares which receive a dividend only after all other dividends have been paid

deferred tax /d f% d t ks/ noun a tax which may become payable at some later date

deficiency

deficiency /d f ʃ(ə)nsi/ noun a lack of something, or the amount by which something, e.g. a sum of money, is less than it should be There is a £10 deficiency in the petty cash. to make up a deficiency to put money into an account to balance it

deficit / def s t/ noun the amount by which spending is higher than income the accounts show a deficit the accounts show a loss to make good a deficit to put money into an account to balance it

deficit financing / def s tfa n ns ŋ/ noun a type of financial planning by a government in which it borrows money to cover the difference between its tax income and its expenditure

defined /d fa nd/ adjective with specific aims

defined benefit plan /d fa nd

benef t pl n/, defined contribution plan /d fa nd kɒntr bju ʃ(ə)n pl n/

noun US a pension plan set up by corporations for their employees

deflate /di fle t/ verb to deflate the economy to reduce activity in the economy by cutting the supply of money

deflation /di fle ʃ(ə)n/ noun a general reduction in economic activity as a result of a reduced supply of money and credit, leading to lower prices The oil crisis resulted in worldwide deflation.

(NOTE: The opposite is inflation.)

‘…the reluctance of people to spend is one of the main reasons behind 26 consecutive months of price deflation, a key economic ill that has led to price wars, depressed the profit margins of state enterprises and hit incomes among the rural population’ [Financial Times]

deflationary /di fle ʃ(ə)n(ə)ri/ adjective which can cause deflation The government has introduced some deflationary measures in the budget.

‘…the strong dollar’s deflationary impact on European economies as national governments push up interest rates’ [Duns Business Month]

deflator /di fle tə/ noun the amount by which a country’s GNP is reduced to take inflation into account

defray /d fre / verb to provide money to pay costs The company agreed to defray the costs of the exhibition.

degearing /di ər ŋ/ noun a reduction in gearing, reducing a company’s

97	delivery month

loan capital in relation to the value of its ordinary shares

del credere /del kre dər / noun an amount added to a charge to cover the possibility of not being paid

del credere agent /del kre dəre d$ənt/ noun an agent who receives a high commission because he or she guarantees payment by customers

delinquency /d l ŋkwənsi/ noun US the fact of being overdue in payment of an account, an interest payment, etc.

delinquent /d l ŋkwənt/ adjective US referring to an account or payment of tax which is overdue

delist /di l st/ verb to remove a company from a Stock Exchange listing (as when a company is ‘taken private’ when an individual investor buys all the shares)

delisting /di l st ŋ/ noun an action of removing a company from a Stock Exchange listing

deliver /d l və/ verb to transport goods to a customer goods delivered free or free delivered goods goods transported to the customer’s address at a price which includes transport costs goods delivered on board goods transported free to the ship or plane but not to the customer’s warehouse

delivered price /d l vəd pra s/ noun a price which includes packing and transport

delivery /d l v(ə)ri/ noun 1. the transporting of goods to a customer allow 28 days for delivery parcels awaiting delivery free delivery or delivery free a delivery date Delivery is not allowed for or is not included. We have a pallet of parcels awaiting delivery. to take delivery of goods to accept goods when they are delivered

We took delivery of the stock into our warehouse on the 25th. 2. a consignment of goods being delivered We take in three deliveries a day. There were four items missing in the last delivery. 3. the transport of a commodity to a purchaser 4. the transfer of a bill of exchange or other negotiable instrument to the bank which is due to make payment

delivery month /d l v(ə)ri m nθ/ noun a month in a futures contract when actual delivery will take place

delivery note

98

demutualise

delivery note /d l v(ə)ri nəυt/ noun a list of goods being delivered, given to the customer with the goods

delivery of goods /d l v(ə)ri əvυdz/ noun the transport of goods to a customer’s address

delivery order /d l v(ə)ri ɔ də/ noun the instructions given by the customer to the person holding her goods, to tell her where and when to deliver them

delivery service /d l v(ə)ri s% v s/ noun a transport service organised by a supplier or a shop to take goods to customers

delivery time /d l v(ə)ri ta m/ noun the number of days before something will be delivered

delivery van /d l v(ə)ri v n/ noun a van for delivering goods to customers

delta shares / deltə ʃeəz/, delta securities / deltə s kjυər tiz/, delta stocks / deltə stɒks/ noun shares in

about 120 companies listed on the London Stock Exchange, but not on the SEAQ system because they are very rarely traded

demand /d mɑ nd/ noun 1. an act of asking for payment payable on demand which must be paid when payment is asked for 2. the need that customers have for a product or their eagerness to buy it There was an active demand for oil shares on the stock market. The factory had to cut production when demand slackened. The office cleaning company cannot keep up with the demand for its services. there is not much demand for this item not many people want to buy it this book is in great demand or there is a great demand for this book many people want to buy it to meet or fill a demand to supply what is needed The factory had to increase production to meet the extra demand. verb to ask for something and expect to get it She demanded a refund. The suppliers are demanding immediate payment of their outstanding invoices. The shop stewards demanded an urgent meeting with the managing director.

‘…spot prices are now relatively stable in the run-up to the winter’s peak demand’ [Economist]

‘…the demand for the company’s products remained strong throughout the first six months

of the year with production and sales showing significant increases’ [Business Times (Lagos)]

‘…growth in demand is still coming from the private rather than the public sector’ [Lloyd’s List]

demand bill /d mɑ nd b l/ noun a bill of exchange which must be paid when payment is asked for

demand deposit /d mɑ nd d -

pɒz t/ noun US money in a deposit account which can be taken out when you want it by writing a cheque

demand draft /d mɑ nd drɑ ft/ noun a draft which is to be paid immediately

demand-led inflation /d mɑ nd led n fle ʃ(ə)n/, demand-pull inflation /d mɑ nd pυl n fle ʃ(ə)n/ noun

inflation caused by rising demand which cannot be met

demand note /d mɑ nd nəυt/ noun a promissory note which must be paid when it is presented

demand price /d mɑ nd pra s/ noun the price at which a quantity of goods will be bought

demerge /di m% d$/ verb to separate a company into several separate parts

demerger /di m% d$ə/ noun the separation of a company into several separate parts (especially used of companies which have grown by acquisition)

demise /d ma z/ noun 1. a death

On his demise the estate passed to his daughter. 2. the act of granting a property on a lease

demonetisation /di m n ta -

ze ʃ(ə)n/, demonetization noun the act of stopping a coin or note being used as money

demonetise /di m n ta z/, demonetize verb to stop a coin or note being used as money

demurrage /d m r d$/ noun money paid to a customer when a shipment is delayed at a port or by customs

demutualisation /di mju tjuəla -

ze ʃ(ə)n/, demutualization noun of the process by which a mutual society, such as building society, becomes a publicly owned corporation

demutualise /di mju tjuəla z/, demutualize verb to stop having mutual status, by becoming a Plc and

denomination

99

depreciate

selling shares to the general public on the stock market

denomination /d nɒm ne ʃ(ə)n/ noun a unit of money (on a coin, banknote or stamp) We collect coins of all denominations for charity. Small denomination notes are not often counterfeited.

department /d pɑ tmənt/ noun 1. a specialised section of a large organisation Trainee managers work for a while in each department to get an idea of the organisation as a whole. 2. a section of a large store selling one type of product You will find beds in the furniture department. 3. a section of the British government containing several ministries

departmental / di pɑ t ment(ə)l/ adjective referring to a department

departmental manager

/ di pɑ tment(ə)l m n d$ə/ noun the manager of a department

Department for Work and Pensions /d pɑ tmənt fə w% k ənpenʃənz/ noun a British government

department responsible for services to people of working age, pensioners and families. Abbreviation DWP

Department of Trade and Industry /d pɑ tmənt əv tre d əndndəstri/ noun a British government

department which deals with areas such as commerce, international trade and the stock exchange. Abbreviation DTI

department store /d pɑ tmənt stɔ / noun a large store with separate sections for different types of goods

deposit /d pɒz t/ noun 1. money placed in a bank for safe keeping or to earn interest deposit at 7 days’ notice money deposited which you can withdraw by giving seven days’ notice 2. money given in advance so that the thing which you want to buy will not be sold to someone else to pay a deposit on a watch to leave £10 as deposit verb 1. to put documents somewhere for safe keeping to deposit shares with a bank We have deposited the deeds of the house with the bank. He deposited his will with his solicitor. 2. to put money into a bank account to deposit £100 in a current account

deposit account /d pɒz t ə kaυnt/ noun a bank account which pays interest

but on which notice has to be given to withdraw money

depositary /d pɒz təri/ noun US a person or corporation which can place money or documents for safekeeping with a depository. American Deposi-

tary Receipt (NOTE: Do not confuse with depository.)

deposit multiplier /d pɒz tm lt pla ə/ noun a factor by which a

bank can increase deposits as a ratio of its reserves

depositor /d pɒz tə/ noun a person who deposits money in a bank, building society, etc.

depository /d pɒz t(ə)ri/ noun a person or company with whom money or documents can be deposited (NOTE:

Do not confuse with depositary.)

deposit slip /d pɒz t sl p/ noun a piece of paper stamped by the cashier to prove that you have paid money into your account

deposit-taking institution /d -

pɒz t te k ŋ nst tju ʃ(ə)n/, depository institution /d pɒz t(ə)rinst tju ʃ(ə)n/ noun an institution

such as a building society, bank or friendly society, which is licensed to receive money on deposit from private individuals and to pay interest on it

depreciate /d pri ʃie t/ verb 1. to reduce the value of assets in accounts

We depreciate our company cars over three years. 2. to lose value a share which has depreciated by 10% over the year The pound has depreciated by 5% against the dollar.

‘…this involved reinvesting funds on items which could be depreciated against income for three years’ [Australian Financial Review]

‘…buildings are depreciated at two per cent per annum on the estimated cost of construction’ [Hongkong Standard]

‘…the euro’s downward drift sparked alarmed reactions from the European Central Bank which has seen the new currency depreciate by almost 15% since its launch’ [Times]

COMMENT: Various methods of depreciating assets are used, such as the ‘straight line method’, where the asset is depreciated at a constant percentage of its cost each year and the ‘reducing balance method’, where the asset is depreciated at a constant percentage which is applied to the cost of the asset after each

depreciation

100

develop

of the previous years’ depreciation has been deducted.

depreciation /d pri ʃi e ʃ(ə)n/ noun

1. a loss of value a share which has shown a depreciation of 10% over the year the depreciation of the pound against the dollar 2. a reduction in value, writing down the capital value of an asset over a period of time in a company’s accounts

depreciation rate /d pri ʃi e ʃ(ə)n re t/ noun the rate at which an asset is depreciated each year in the company accounts

depress /d pres/ verb to reduce something Reducing the money supply has the effect of depressing demand for consumer goods.

depressed area /d prest eəriə/ noun a part of a country suffering from depression

depressed market /d prestmɑ k t/ noun a market where there are more goods than customers

depression /d preʃ(ə)n/ noun a period of economic crisis with high unemployment and loss of trade The country entered a period of economic depression.

dept abbreviation department

deregulate /di re jυle t/ verb to remove government controls from an industry The US government deregulated the banking sector in the 1980s.

deregulation /di re jυ le ʃ(ə)n/ noun the reduction of government control over an industry the deregulation of the airlines

‘…after the slump in receipts last year that followed liner shipping deregulation in the US, carriers are probably still losing money on their transatlantic services. But with a possible contraction in capacity and healthy trade growth, this year has begun in a much more promising fashion than last’ [Lloyd’s List]

derivative instruments /d r vət vnstrυmənts/, derivatives /d -

r vət vz/ plural noun any forms of traded security, such as option contracts, which are derived from ordinary bonds and shares, exchange rates or stock market indices

COMMENT: Derivatives traded on stock exchanges or futures exchanges include options on futures or exchange rates or interest rate. While they can be seen as a

way of hedging against possible swings in exchange rates or commodity prices, they can also produce huge losses if the market goes against the trader.

descending tops /d send ŋ tɒps/ plural noun a term used by chartists to refer to a falling market, where each peak is lower than the one before

designate adjective / dez nət/ appointed to a job but not yet working

the chairman designate (NOTE: always follows a noun) verb / dez ne t/ to

appoint someone to a post

designer /d za nə/ adjective expensive and fashionable designer jeans

desk /desk/ noun 1. a writing table in an office, usually with drawers for stationery a desk diary a desk drawer

a desk light a three-drawer desk desk with three drawers 2. a section of a newspaper

desk pad / desk p d/ noun a pad of paper kept on a desk for writing notes

destabilise /di ste b la z/, destabilize verb to make something less stable The comments by the speculators were aimed at destabilising the country’s economy.

destabilising /di ste b la z ŋ/,

destabilizing adjective which makes something less stable

detailed account / di te ld ə kaυnt/ noun an account which lists every item

determine /d t% m n/ verb to fix, arrange or decide to determine prices or quantities conditions still to be determined

Deutsches Bundesbank noun the German central bank, based in Frankfurt

Deutschmark / dɔ tʃmɑ k/ noun a unit of currency used before the euro in Germany (NOTE: When used with a fig-

ure, usually written DM before the figure: DM250 (say ‘two hundred and fifty Deutschmarks’).)

devaluation / di v lju e ʃ(ə)n/ noun a reduction in the value of a currency against other currencies the devaluation of the rand

devalue /di v lju / verb to reduce the value of a currency against other currencies The pound has been devalued by 7%.

develop /d veləp/ verb 1. to plan and produce to develop a new product 2.

developing country

101

dip

to plan and build an area to develop an industrial estate

developing country /d veləp ŋ

k ntri/, developing nation /d -

veləp ŋ ne ʃ(ə)n/ noun a country which is not fully industrialised

development /d veləpmənt/ noun the work of planning the production of a new product and constructing the first prototypes We spend a great deal on research and development.

development area /d veləpmənteəriə/, developement zone /d -

veləpmənt zəυn/ noun an area which has been given special help from a government to encourage businesses and factories to be set up there

deviate / di vie t/ verb to turn away from what is normal or usual

deviation / di vi e ʃ(ə)n/ noun a change of route or strategy Advertising in the tabloids will mean a deviation from our normal marketing strategy.

devise /d va z/ noun the act of giving freehold land to someone in a will

(NOTE: Giving of other types of property is a bequest).

dial / da əl/ verb to call a telephone number on a telephone to dial a number to dial the operator to dial direct to contact a phone number without asking the operator to do it for you

You can dial New York direct from London.

differential / d fə renʃəl/ adjective which shows a difference noun to erode wage differentials to reduce differences in salary gradually

differential tariffs / d fərenʃəlt r fs/ plural noun different tariffs for different classes of goods as, e.g., when imports from certain countries are taxed more heavily than similar imports from other countries

difficulty / d f k(ə)lti/ noun a problem, or trouble in doing something

They had a lot of difficulty selling into the European market. We have had some difficulties with customs over the export of computers.

digit / d d$ t/ noun a single number a seven-digit phone number

digital / d d$ t(ə)l/ adjective converted into a form that can be processed by computers and accurately reproduced

digital cash / d d$ t(ə)l k ʃ/ noun a form of digital money that can be used like physical cash to make online purchases and is anonymous because there is no way of obtaining information about the buyer when it is used

digital money / d d$ t(ə)l m ni/ noun a series of numbers that has a value equivalent to a sum of money in a physical currency

digital wallet / d d$ t(ə)l wɒl t/ noun a piece of personalised software on the hard drive of a user’s computer that contains, in coded form, such items as credit card information, digital cash, a digital identity certificate, and standardised shipping information, and can be used when paying for a transaction electronically. Also called e-purse,

electronic purse

diligence / d l d$əns/ noun due diligence

dilute /da lu t/ verb to make less valuable Conversion of the loan stock will dilute the assets per share by 5%.

dilution levy /da lu ʃ(ə)n levi/ noun an extra charge levied by fund managers on investors buying or selling units in a fund, to offset any potential effect on the value of the fund of such sales or purchases

dilution of shareholding /da -

lu ʃ(ə)n əv ʃeəhəυld ŋ/ noun a situation where the ordinary share capital of a company has been increased, but without an increase in the assets so that each share is worth less than before

(NOTE: The US term is stockholding.)

dime /da m/ noun US ten cent coin

(informal)

diminish /d m n ʃ/ verb to become smaller Our share of the market has diminished over the last few years.

dinar / di nɑ / noun a unit of currency used in some European countries (including Bosnia, Macedonia and Serbia) and in many Arabic countries: Algeria, Bahrain, Iraq, Jordan, Kuwait, Libya, Tunisia, South Yemen and Sudan

dip /d p/ noun a sudden small fall

Last year saw a dip in the company’s performance. verb to fall in price

Shares dipped sharply in yesterday’s trading. (NOTE: dipping – dipped)

direct

102

Director of the Budget

direct /da rekt/ verb to manage or organise something He directs our South-East Asian operations. She was directing the development unit until last year. adjective straight or without interference adverb with no third party involved We pay income tax direct to the government. to dial direct to contact a phone number yourself without asking the operator to do it for you

You can dial New York direct from London if you want.

direct action /da rekt kʃən/ noun a strike or go-slow by a workforce

direct business /da rekt b zn s/ noun insurance business transacted between an insurance company and the person taking out the insurance (without going through a broker)

direct cost /da rekt kɒst/ noun a cost which can be directly related to the making of a product, i.e. its production cost

direct debit /da rekt deb t/ noun a system where a customer allows a company to charge costs to his or her bank account automatically and where the amount charged can be increased or decreased with the agreement of the customer I pay my electricity bill by direct debit.

direction /da rekʃən/ noun 1. the process of organising or managing He took over the direction of a multinational group. 2. directions for use instructions showing how to use something

directive /da rekt v/ noun an order or command to someone to do something (especially an order from the Council of Ministers or Commission of the European Union referring to a particular problem in certain countries)

The Commission issued a directive on food prices.

directly /da rektl / adverb with no third party involved We deal directly with the manufacturer, without using a wholesaler.

direct mail /da rekt me l/ noun the practice of selling a product by sending publicity material to possible buyers through the post These calculators are only sold by direct mail. The company runs a successful direct-mail operation.

‘…all of those who had used direct marketing techniques had used direct mail, 79% had used some kind of telephone technique and 63% had tried off-the-page selling’ [Precision marketing]

direct-mail advertising /da rekt me l dvəta z ŋ/ noun advertising by

sending leaflets to people through the post

direct mailing /da rekt me l ŋ/ noun the sending of publicity material by post to possible buyers

director /da rektə/ noun 1. a senior employee appointed by the shareholders to help run a company, who is usually in charge of one or other of its main functions, e.g. sales or human relations, and usually, but not always, a member of the board of directors directors’ salaries salaries of directors (which have to be listed in the company’s profit and loss account) 2. the person who is in charge of a project, an official institute or other organisation the director of the government research institute She was appointed director of the trade association.

‘…the research director will manage and direct a team of business analysts reporting on the latest developments in retail distribution throughout the UK’ [Times]

COMMENT: Directors are elected by shareholders at the AGM, though they are usually chosen by the chairman or chief executive. A board will consist of a chairman (who may be non-executive), a chief executive or managing director and a series of specialist directors in charge of various activities of the company (such as a finance director, production director or sales director). The company secretary will attend board meetings, but need not be a director. Apart from the executive directors, who are in fact employees of the company, there may be several non-executive directors, appointed either for their expertise and contacts, or as representatives of important shareholders such as banks. The board of an American company may be made up of a large number of non-executive directors and only one or two executive officers. A British board has more executive directors.

directorate /da rekt(ə)rət/ noun a group of directors

Director of the Budget /da rektə əv ðə b d$ t/ noun the member of a government in charge of the preparation of the budget

director’s fees

103

discount

director’s fees /da rektəz fi z/ plural noun money paid to a director for attendance at board meetings

directorship /da rektəʃ p/ noun the post of director She was offered a directorship with Smith Ltd.

‘…what benefits does the executive derive from his directorship? In the first place compensation has increased sharply in recent years’ [Duns Business Month]

directors’ report /da rektəz r -

pɔ t/ noun the annual report from the board of directors to the shareholders

directory /da rekt(ə)ri/ noun 1. a reference book containing information on companies and their products 2. a list of people or businesses with information about their addresses and telephone numbers

direct paper /da rekt pe pə/ noun a financial paper sold direct to investors

direct placement /da rektple smənt/ noun US the act of placing

new shares directly with purchasers, without going through a broker

direct selling /da rekt sel ŋ/ noun the work of selling a product direct to the customer without going through a shop

direct sends /da rekt sendz/ plural noun US cheques sent directly to a drawee bank to be cleared, without going through the clearing house process

direct share ownership /da rektʃeə əυnəʃ p/ noun the ownership of

shares by private individuals, buying or selling through brokers, and not via holdings in unit trusts

direct tax /da rekt t ks/ noun a tax (such as income tax) paid directly to the government

direct taxation /da rekt t k-

se ʃ(ə)n/ noun a tax, such as income tax which is paid direct to the government The government raises more money by direct taxation than by indirect.

dirham / d ər m/ noun a unit of currency used in Morocco and the United Arab Emirates

dirty float / d% ti fləυt/ noun a process of floating a currency, where the government intervenes to regulate the exchange rate

disallow / d sə laυ/ verb not to accept a claim for insurance He claimed £2,000 for fire damage, but the claim was disallowed.

disburse /d s b% s/ verb to pay money

disbursement /d s b% smənt/ noun the payment of money

discharge noun / d stʃɑ d$/ 1. a payment of debt in full discharge of a debt as full payment of a debt 2. in discharge of her duties as director

while carrying out her duties as director

verb /d s tʃɑ d$/ 1. to discharge a bankrupt to release someone from bankruptcy because they have has paid their debts 2. to dismiss an employee to discharge an employee for negligence

discharged bankrupt /d s tʃɑ d$db ŋkr pt/ noun a person who has been released from being bankrupt because his or her debts have been paid

discharge in bankruptcy

/ d stʃɑ d$ n b ŋkr ptsi/, discharge of bankruptcy noun the legal process of being released from bankruptcy after paying your debts

disciplinary procedure /d s -

pl nəri prə si d$ə/ noun a way of warning a worker officially that he or she is breaking rules or is working badly

disclaimer /d s kle mə/ noun a legal refusal to accept responsibility

disclose /d s kləυz/ verb to tell something that was previously unknown to other people or secret The bank has no right to disclose details of my account to the tax office.

disclosure /d s kləυ$ə/ noun the act of telling something that was previously unknown to other people or secret The disclosure of the takeover bid raised the price of the shares.

disclosure of shareholding /d s-

kləυ$ər əv ʃeəhəυld ŋ/ noun the act of making public the fact that someone owns shares in a company

discount noun / d skaυnt/ 1. the percentage by which the seller reduces the full price for the buyer to give a discount on bulk purchases to sell goods at a discount or at a discount price to sell goods below the normal price

10% discount for cash or 10% cash discount you pay 10% less if you pay in

discountable

104

discretionary

cash 2. the amount by which something is sold for less than its value currency at a discount a currency whose future value is less than its spot value shares which stand at a discount shares which

are lower in price than their asset value or their par value verb /d s kaυnt/ 1.

to reduce prices to increase sales 2. to discount bills of exchange to buy or sell bills of exchange for less than the value written on them in order to cash them later 3. to react to something which may happen in the future (such as a possible takeover bid or currency devaluation) shares are discounting a rise in the dollar shares have risen in advance of a rise in the dollar price

‘…pressure on the Federal Reserve Board to ease monetary policy and possibly cut its discount rate mounted yesterday’ [Financial Times]

‘…banks refrained from quoting forward US/Hongkong dollar exchange rates as premiums of 100 points replaced the previous day’s discounts of up to 50 points’ [South China Morning Post]

discountable / d skaυntəb(ə)l/ adjective which can be discounted These bills are not discountable.

discount broker / d skaυntbrəυkə/ noun a broker who charges a

lower commission than other brokers

discounted cash flow

/ d skaυnt d k ʃ fləυ/ noun the calculation of the forecast return on capital investment by discounting future cash flows from the investment, usually at a rate equivalent to the company’s minimum required rate of return. Abbreviation DCF

COMMENT: Discounting is necessary because it is generally accepted that money held today is worth more than money to be received in the future. The effect of discounting is to reduce future income or expenses to their ‘present value’. Once discounted, future cash flows can be compared directly with the initial cost of a capital investment which is already stated in present value terms. If the present value of income is greater than the present value of costs, the investment can be said to be worthwhile.

discounted value / d skaυnt dv lju / noun the difference between the face value of a share and its lower market price

discounter / d skaυntə/ noun a person or company that discounts bills or invoices, or sells goods at a discount

‘…invoice discounting is an instant finance raiser. Cash is advanced by a factor or discounter against the value of invoices sent out by the client company. Debt collection is still in the hands of the client company, which also continues to run its own bought ledger’ [Times]

‘…a 100,000 square-foot warehouse generates ten times the volume of a discount retailer; it can turn its inventory over 18 times a year, more than triple a big discounter’s turnover’ [Duns Business Month]

discount house / d skaυnt haυs/ noun 1. a financial company which specialises in discounting bills 2. a shop which specialises in selling cheap goods bought at a high discount

discount market / d skaυntmɑ k t/ noun a market for borrowing and lending money, through Treasury bills, certificates of deposit, etc.

discount points / d skaυnt pɔ nts/ plural noun US extra payments made to a lender to produce a reduction in the interest rate on a mortgage

discount price / d skaυnt pra s/ noun the full price less a discount

discount rate / d skaυnt re t/ noun the percentage taken when a bank buys bills

discount store / d skaυnt stɔ / noun a shop which specialises in cheap goods bought at a high discount

discount window / d skaυntw ndəυ/ noun US a way in which the

Federal Reserve grants loans to a bank by giving advances on the security of Treasury bills which the bank is holding

discrepancy /d skrepənsi/ noun a situation where figures are not correct

discrete compounding /d skri tkɒmpaυnd ŋ/ noun a system where in-

terest is calculated at certain times, such as the end of a month or year, and then added to the principal

discretion /d skreʃ(ə)n/ noun the ability to decide what should be done

I leave it to your discretion I leave it for you to decide what to do at the discretion of someone according to what someone decides Membership is at the discretion of the committee.

discretionary /d skreʃ(ə)n(ə)ri/ adjective which can be done if someone wants the minister’s discretionary

discretionary account

105

disqualification

powers powers which the minister could use if he or she thought it necessary on a discretionary basis referring to a way of managing a client’s funds, where the fund manager uses his discretion to do as he wants, without the client giving him any specific instructions

discretionary account /d -

skreʃ(ə)n(ə)ri ə kaυnt/ noun a client’s account with a stockbroker, where the broker invests and sells at his own discretion without the client needing to give him specific instructions

discretionary client /d -

skreʃ(ə)n(ə)ri kla ənt/ noun a client whose funds are managed on a discretionary basis

discretionary funds /d -

skreʃ(ə)n(ə)ri f ndz/ plural noun funds managed on a discretionary basis

diseconomies of scale /d s -

kɒnəmiz əv ske l/ plural noun a situation where increased production leads to a higher production cost per unit or average production cost

COMMENT: After having increased production using the existing workforce and machinery, giving economies of scale, the company finds that in order to increase production further it has to employ more workers and buy more machinery, leading to an increase in unit cost.

disenfranchise / d s n fr ntʃa z/ verb to take away someone’s right to vote The company has tried to disenfranchise the ordinary shareholders.

disequilibrium / d si kw l briəm/ noun an imbalance in the economy when supply does not equal demand or a country’s balance of payments is in deficit

dishonour /d s ɒnə/ verb (NOTE: The US spelling is dishonor.) to dishonour a bill not to pay a bill

dishonoured cheque /d s ɒnədtʃek/ noun a cheque which the bank will not pay because there is not enough money in the account to pay it

disinflation / d s n fle ʃ(ə)n/ noun the process of reducing inflation in the economy by increasing tax and reducing the level of money supply. Compare

deflation

disinflationary / d s n-

fle ʃ(ə)n(ə)ri/ adjective which reduces the level of inflation in the economy

disintermediation /d s ntəmi di-

e ʃ(ə)n/ noun 1. the removal of any intermediaries from a process so that, e.g., lenders lend money direct to borrowers 2. a situation where investors remove their money from deposit accounts and invest directly in the stock market

disinvest / d s n vest/ verb 1. to reduce investment by not replacing capital assets when they wear out 2. to reduce investment by selling shares

disinvestment / d s n vestmənt/ noun 1. a reduction in capital assets by not replacing them when they wear out 2. a process of reducing investments by selling shares

disk /d sk/ noun a round flat object, used to store information in computers

disk drive / d sk dra v/ noun a part of a computer which makes a disk spin round in order to read it or store information on it

diskette /d sket/ noun a small floppy disk He sent a diskette of the accounts to his accountant.

dismissal procedures /d s m s(ə)l prə si d$əz/ plural noun the correct way to dismiss someone, following the rules in the contract of employment

dispatch note /d sp tʃ nəυt/ noun a note saying that goods have been sent

disposable personal income /d -

spəυzəb(ə)l p% s(ə)nəl nk m/ noun the income left after tax and national insurance have been deducted (also called ‘take-home’ pay)

disposal /d spəυz(ə)l/ noun a sale a disposal of securities The company has started a systematic disposal of its property portfolio. lease or business for disposal a lease or business for sale

dispose /d spəυz/ verb to dispose of to get rid of or to sell, especially cheaply to dispose of excess stock to dispose of excess equipment He is planning to dispose of his business in the new year.

disqualification /d s kwɒl f -

ke ʃ(ə)n/ noun the act of making someone disqualified to do something

‘Even ‘administrative offences’ can result in disqualification. A person may be disqualified