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Glossary

Dividends

A distribution of after tax profit by a company to it’s shareholders based upon class of stock and the amount of shares owned.

Do Not Reduce (DNR)

A buy or sell limit order that instructs the broker to not decrease the limit price by the amount of cash dividend.

Doji

A frequent pattern found in Candlestick price charts, where an opening and closing price for a price bar are nearly identical.

Dollar Cost Averaging

A disciplined strategy that reduces risk where an investor contributes a fixed amount into a particular investment at regular, consistent intervals over time, thereby averaging the price paid for the instrument over that period.

Double Bottom

A price chart pattern that resembles a ‘W’, it identifies a drop of a security’s price, followed by a rebound, then a drop back to the same level as that of the original drop.

Double Top

A price chart pattern that resembles a ‘M’, it identifies a peak of a security’s price, followed by a drop, then a rebound back to the same level as that of the original peak.

Dow Jones Industrial Average (DJIA)

Comprised of thirty stocks traded on the New York Stock Exchange (NYSE) and Nasdaq, this is a weighted average of their current market prices.

Down Volume

Signifies when a stock’s volume closes at a price lower than that of the previous day’s close.

Downgrade

Analyst(s) announcement reflecting a negative opinion of the desirability of a stock as an investment.

Downtick

An exchange transaction where price of current transaction is lower that the last previous transaction.

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