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GLOSSARY
Distribution
A distribution is a payment or allocation. The term is most commonly associated with withdrawals from retirement or other tax-advantaged savings accounts, dividend or capital gain payments made from a mutual fund to its investors, or cash or stock payments made from a company to its shareholders.
Diversification
Diversification is a tenet of conservative investing. It calls for spreading out investment funds among different classes of assets, different industries, and/or different companies, in order to reduce risk.
Divestiture
Divestiture is the act of selling off all or part of an investment. When a company sells off a business unit, for example, it's said to be divesting that unit. Divestiture is also known as divestment, i.e., the opposite of investment.
Dividend
A taxable distribution or payment of earnings to shareholders as declared by a company's board of directors. In credit unions, a dividend is the money paid to members for deposits. This is similar to the interest banks pay to their customers for their deposits.
Do Not Call Registry
The Do Not Call Registry is a list of telephone numbers that telemarketers are not allowed to call. The Registry is maintained by the U.S. Federal Trade Commission; numbers are registered upon request and without charge.
Doctrine of utmost good faith
Doctrine of utmost good faith is the principle that both parties entering into a contract are acting honestly towards one another. In a lending transaction, for example, the applicant must honestly disclose all financial and employment information. The lender must also act in good faith, by providing the applicant with a full list of terms and conditions.
Document needs list
An inventory of papers which a lender needs available to underwrite a loan. This list may include paycheck stubs, bank statements and tax returns.
Domicile
Domicile is a legal term referring to the place which governs an individual, usually the person's permanent residence. In the U.S., citizens have a state domicile, because state governments have their own laws about marriage, contracts, etc. Where the laws are different from state to state, an individual is held accountable for following the laws of his state domicile.
Domini 400 Social Index
The Domini 400 Social Index is a stock market index representing the weighted average of market capitalizations for companies that have demonstrated social and environmental excellence. The index is published by KLD Research & Analytics.
Donor advised fund
A donor advised fund, or DAF, is an entity that's created to facilitate the giving of charitable donations on behalf of an individual, family, or other entity. DAFs are easier to set up and maintain than foundations, and the donor is able to retain significant control over how the funds are managed.
Dormancy fees
Dormancy fees are charges assessed for the non-use of gift cards. Generally, a gift card is free from dormancy fees for a certain time period, such as one year. After that period expires, a monthly fee (the dormancy fee) is charged against the card balance until it is reduced to zero.
Double net lease
A double net lease places the responsibility for property taxes and insurance on the tenant or lessee. Repair and maintenance expenses are paid by the property owner/lessor.
Down payment
The initial and part cash payment towards the price of the property which is not financed by the mortgage.
Downshifting
Downshifting is the voluntary lowering of one's standard of living. Most commonly, downshifting involves the trade-off of lesser financial wealth in return for the hope of greater personal fulfillment. For example, a busy executive might give up a six-figure salary to spend more time with family.
Draw
A periodic payment made to a construction contractor or subcontractor as the project progresses. A draw is part of a construction loan.