Used for listed equity securities. Method of buying and selling stocks around their
ex-dividend dates so as to collect the dividend (which is 80% tax-exempt) offset
by a fully-taxable capital loss. Predicated on the 80% (as of tax reform law of
1986) tax-exempt status that some corporations receive on dividend income.
Japanese insurance companies are also large players due to a national
regulation that allows policy distribution of income, excluding capital gains only.
Dividend yield (Funds)
Indicated yield represents return on a share of a mutual fund held over the past
12 months. Assumes fund was purchased 1 year ago. Reflects effect of sales
charges (at current rates), but not redemption charges.
Dividend yield (Stocks)
Indicated yield represents annual dividends divided by current stock price.
DM
Deutsche (German) marks.
DNR Order
See: Do Not Reduce Order
Doctrine of sovereign immunity
Doctrine that says a nation may not be tried in the courts of another country
without its consent.
Documented discount notes
Commercial paper backed by normal bank lines plus a letter of credit from a bank
stating that it will pay off the paper at maturity if the borrower defaults. Such
paper is also referred to as L.O.C. paper.
Dollar bonds
Municipal revenue bonds for which quotes are given in dollar prices. Not to be
confused with U.S. Dollar bonds, a common term of reference in the Eurobond
market.
Dollar duration
The product of modified duration and the initial price.
