Business Finance

Demand deposits refer to funds held in a bank account that can be withdrawn by the account holder at any time without prior notice to the bank. These deposits are considered highly liquid and are typically used for everyday transactions. Key Characteristics of Demand Deposits How Demand Deposits Work Banking System Mechanics Example of Demand […]

Deposit-taking institutions are financial entities that primarily accept and manage deposits from customers. These institutions play a crucial role in the economy by providing a safe place for individuals and businesses to deposit funds, earn interest, and access financial services. They form a critical part of the financial system, facilitating savings, lending, and liquidity management

A derivative is a financial instrument whose value depends on, or is derived from, the value of another asset, known as the underlying asset. These underlying assets can be stocks, bonds, commodities, currencies, interest rates, or market indexes. Derivatives are often used for hedging risks or for speculative purposes. Key Characteristics of Derivatives Types of

Derivative action is a legal mechanism that allows shareholders to sue on behalf of a corporation. This typically occurs when a company’s management or board of directors fails to take appropriate action to address a wrong done to the company. In such cases, shareholders can step in to protect the interests of the corporation, seeking

Direct Debit is a financial transaction where an individual or business authorizes another party, such as a bank or service provider, to withdraw money directly from their bank account on a regular basis. This method is commonly used for paying bills, subscriptions, memberships, and other recurring expenses. Key Characteristics of Direct Debit How Direct Debit

Direct investment refers to when a company or individual invests in a business with the intention of gaining significant control or influence over the management and operations of that business. This type of investment involves a long-term relationship where the investor seeks to actively participate in the decision-making process of the invested entity. Key Characteristics

A Direct Letter of Credit is a financial instrument used in international trade to ensure that a seller receives payment for goods or services provided to a buyer. It is issued by the buyer’s bank, guaranteeing payment to the seller upon fulfillment of certain conditions, typically the presentation of specified documents within a set timeframe.

Direct placing is a method used by companies to raise capital by selling shares directly to a select group of investors, typically institutional investors, without the use of a public offering or intermediary such as an underwriter. This method is often used when a company needs to raise funds quickly or wants to avoid the

Dirty float refers to a system where a country’s currency exchange rate is allowed to fluctuate freely in the foreign exchange market, but with occasional government intervention to influence the rate. This intervention can involve buying or selling currencies by the central bank or government authorities to stabilize or adjust the exchange rate. Unlike a

A discount factor is a financial calculation used to determine the present value of future cash flows or liabilities. It represents the present value of a future sum of money, discounted back to the present at a specific rate. Discount factors are essential in various financial analyses, including valuation of investments, determining the present value