Secured Loans
Drop, the
With the dollar roll transaction the difference between the sale price of a
mortgage-backed pass-through, and its re-purchase price on a future date at a
predetermined price.
Drop lock
An arrangement whereby the interest rate on a floating rate note or preferred
stock becomes fixed if it falls to a specified level.
DRP
See: Dividend Reinvestment Plan
DTC
See: Depository Trust Company
DTC
See: Depository Transfer Check
Dual-currency issues
Eurobonds that pay coupon interest in one currency but pay the principal in a
different currency.
Dual listing
Used for listed equity securities. Listing of a security on more than one exchange,
thus increasing the competition for bid and offer prices, the liquidity of the
securities, and the number of hours when the stock can be traded (if listed both
on the east and west coasts.) See: listed security.
Dual syndicate equity offering
An international equity placement where the offering is split into two tranches -
domestic and foreign - and each tranche is handled by a separate lead manager.
Due bill
An instrument evidencing the obligation of a seller to deliver securities sold to the
buyer. Occasionally used in the bill market.
Due dilengence
