Glossary of Terms

  • Daily high

    The highest price reached by a security or index during the day.
  • Daily low

    The lowest price reached by a security or index during the day.
  • Dealer

    Dealers buy and sell securities on behalf of the broking firm (or investment bank).
  • Dealing Limit

    The amount you can trade up to without having to make a payment until the settlement date.
  • Dealing Password

    A password issued by GAM required when placing trades online. If you have lost or forgotten your dealing password, please call us on +350 200 75181 or email
  • Debentures

    A type of long-term bond, taken out by a company, which it agrees to repay at a specified future date. Usually secured against specific assets (mortgage debentures) or through a floating charge on the firm's assets.
  • Debt

    Companies are able to raise money by borrowing money from investors, and promising to pay them back on an agreed date. For the period of time whilst the money is owed, the company will also pay interest to the investor. These agreements are known as bonds, or if they're issued by the UK Government then they're known as gilts.
  • Deferred Shares

    These are a special type of Ordinary Shares, but owners are only given a dividend after all the ordinary dividends have been paid.
  • Dematerialised shares

    These are shares which are held in electronic form rather than certificated form, which makes them easier to buy and sell.
  • Derivatives

    A derivative is an instrument whose value depends on the performance of an underlying asset or security, which may be a commodity or a financial instrument.
  • Dirty Price

    The price of a bond, which includes the accrued interest element.
  • Diversification

    The act of spreading capital across different investments to reduce risk.
  • Dividend

    The way a shareholder receives their share in profits made by the company. The dividend amount is calculated in pence per share and UK dividends are usually paid twice a year; the first one is known as the interim dividend, and the second is known as the final dividend.
  • Dividend Claim

    Should shares in a company be bought for T+10 settlement the day before their Ex-Div Date, the investor is legally entitled to the next dividend payment. However, the shareholder register won't be updated to show this until after the Record Date. This means the dividend payment won't be automatically sent to the purchaser; it will still be sent to the seller, who isn't entitled to it. The money has to be "claimed" from the person who received it, and forwarded on to the purchaser.
  • Dividend Yield

    The percentage of a company's share price that it pays out as dividends over the course of a year. The Dividend Yield is calculated as the Total Dividend divided by the Share Price multiplied by 100. The Dividend Yield is displayed as a percentage.
  • Dow Jones Industrial Average

    The Dow Jones Industrial Average is a price-weighted average of 30 significant stocks traded on the New York Stock Exchange and the Nasdaq. The DJIA was invented by Charles Dow back in 1896.