EBIT stands for Earnings Before Interest & Tax and is a common indicator of the profitability of a firm.The calculation is Operating Income + Stock-Based Compensation, or Revenue - Operating Expen...
Due diligence is the act of investigating any potential investment, usually through an auditor or an audit process. Due diligence is essential to any financial process, and the purpose of it is to ens...
A downgrade is when an asset, company or government has its rating lowered. Typically this will represent either a lowering of the quality of the asset or the increased likelihood of default on a corp...
The Dow Jones Industrial Average (commonly referred to as the Dow) is one of the benchmark indices used in the United States. It is the weighted market capitalization of 30 large corporations traded d...
The Dodd-Frank Regulatory Reform Bill is a bill in the United States which was passed after the 2008 financial crisis which aims to increase restrictions and government control over the financial sect...
A dividend is a payment by a company to its shareholders representing a portion of earnings. The board of directors of the firm determines the amount paid in a dividend.In order to calculate a dividen...
Diversification is the act of spreading investments amongst different assets, companies and sectors. The idea behind this is to reduce risk. If one investment fails, the investor will only lose a prop...
Divergence is when two items move in different directions to each other, and away from each other. In finance, the term divergence is applied to asset prices, indicators and indices.Divergence can pro...
A distressed asset is one which is in major financial difficulty, usually either in default or close to default. This will have caused the asset to greatly devalue. Distressed assets can be a good opp...
A Discounted Cash Flow or DCF is one of the most important methods used to value a company. A DCF is carried out by estimating the total value of all future cash flows (b...