Dear visitors,

Welcome to our Glossary section! We are very happy to see you here! This is the place where we will do our best to include as many terms from the accounting and financial world as possible so that we fully respond to your research and business needs.

Our team will constantly work on the content so that we make sure that you always stay satisfied with the information you obtain. We have sorted the terms alphabetically so that it is convenient for you to navigate through the section. In addition, we have integrated a special division dedicated to curious terms from the stock market. We hope you find them as much enjoyable as we do.

Sb Team wishes you a pleasant and fruitful navigation through our Glossary section!

Dividend: Part of the company’s profit, which every shareholder is entitled to receive after the shares distribution. The companies are not obliged to distribute dividends, they can reinvest the profit instead. The decision whether to distribute dividends or not is taken by the General Assembly of the Shareholders and it usually leads to an increase or decrease of the shares’ price

Diversification: Investment strategy for lowering the risk through including in the investment portfolio different types of assets – shares, debentures, currency, real estates, etc. Also securities may be included from different issuers.

Depreciation: A decrease into the value of equipment as a result from its wearing out.

Devaluation: Official decrease into a currency’s rate.

Des-intermediation: A process of decreasing the money funds going through the system of the financial mediators and respectively increasing the direct financing. This means a decrease in the bank deposits and increase of the direct purchase of financial tools.

Des-inflation: A sharp decrease into the inflation’s pace.

Deposit multiplier: A coefficient, indicating the extent to which the initial change in the bank deposits can be multiplied. Its value is opposite the value of the coefficient of the obligatory reserves.

Depression: A continuous period of slack economic activity and high level of unemployment.

Derivatives: Financial tools which acquire value from the value of another asset.

Dissaving: Spending of bigger amount of money than the income.

Deflation: Overall decrease into the prices of a certain country.

Diversification: Including diversified assets into the investment portfolio with the purpose of minimizing the risk and maximizing the profit.

Dividend: An income paid to shareholders.

Developing countries: A group of countries from the world economy, distinguished by their relatively low level of development and production and experiencing complex problems with the economic growth and economic openness. The most applicable criterion for distinguishing the developing from the developed countries is the level of the average GDP per person factor.

Depreciation: A method of allocating the cost of a tangible asset over its useful life. Businesses depreciate long-term assets for both tax and accounting purposes.

Date for preparation of the annual financial statements: The deadline, determined by the law, on which the financial statements should be concluded.

Date for publishing the annual financial statements: The deadline on which the financial statements should be published. It cannot be later than the determined by the law date.

Deals between affiliates: Transferring of assets and/or liabilities between affiliates, without necessarily applying the proper fair price for this deal.

Daughter company: A company that is completely or partly owned and controlled by another company. It is also called subsidiary.

Deduction: The total of the transitional invoiced amounts (see transitional invoiced amounts) which are not paid until the appointed in the contract conditions are fulfilled or until the defects are removed.

Deferred tax liabilities: The owed for future periods taxes on the income related to the taxable temporary differences (see temporary differences).

Deferred tax assets: The redeemable for future periods taxes related to the written off temporary differences (see temporary differences), the transition of the unused tax losses and the transition of the unused tax credits.

Deal between related persons: Transition of resources, services or obligations between related persons (see related persons) , regardless if there is a price applicable.

Dividends tax: A dividend tax is simply a tax the government levies on shareholders of a corporation when that corporation distributes a dividend (see dividend). Normally a dividend tax is a percentage of the total dividend issued. If there is a 5% dividend tax, and a corporation distributes a dividend of EUR 1.00 per share, then an investor who holds stock in the company is forced to pay 5 eurocents for each share he owns in the company.

Direct debit: A payment tool which gives permission for debiting the payer’s bank account initiated by the payment receiver on the grounds of preliminary given agreement by the payer.

Devaluation: The legal or the official decrease of the currency rate of a certain currency compared to the other currencies.

Due Diligence: This term is used for a number of concepts involving either an investigation of a business or person prior to signing a contract, or an act with a certain standard of care. It can be a legal obligation, but the term will more commonly apply to voluntary investigations. A common example of due diligence in various industries is the process through which a potential acquirer evaluates a target company or its assets for acquisition.

Deficit of the payment balance: A balance in which the payments to abroad exceed the payments coming from abroad.

Direct costs: Production costs which are in direct relation to the realization of the production. It is a variable cost.

Dissaving: Spending of accumulated savings or an increase in the borrowed money.

Devalorization: A process in which the capital is being reduced as a result of a reduction in the prices of the middle or in the final goods or of a bankruptcy.

Disposable income: Personal income plus transferred income after taxation. Also the amount of money that a person can afford to spend or save for a certain period of time.

Dumping: A sale of goods by a company or a government at a price which is lower than the costs for their production. This is made with the purpose of increasing the market share or avoiding the expenses for the storage of the unsold stock.

Dumping: A sale of goods by a company or a government at a price which is lower than the costs for their production. This is made with the purpose of increasing the market share or avoiding the expenses for the storage of the unsold stock.