Financial Dictionary

This dictionary contains:
24549
financial terms

Deductive reasoning




Deductive reasoning

Using known facts to draw a conclusion about a specific situation.



SIMILAR TERMS
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Deductible
An amount or period which must be deducted before an insurance payout or settlement is calculated.

Deductible contribution
Amount paid into an IRA, an employer-sponsored retirement plan, or other type of retirement plan for a particular tax year that is a deduction from income for tax purposes.

Deduction
An expense that is allowable as a reduction of gross taxable income by the IRS.



PREVIOUS AND NEXT TERMS
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Dedicated capital
Total par value (number of shares issued, multiplied by the par value of each share). Also called dedicated value.

Dedication strategy
Refers to multiperiod cash-flow matching.

Deductible
An amount or period which must be deducted before an insurance payout or settlement is calculated.

Deductible contribution
Amount paid into an IRA, an employer-sponsored retirement plan, or other type of retirement plan for a particular tax year that is a deduction from income for tax purposes.

Deduction
An expense that is allowable as a reduction of gross taxable income by the IRS.

Deductive reasoning

Deep discount bond
A bond issued with a very low coupon or no coupon that sells at a price far below par value. A bond that has no coupon is called a zero-coupon bond.

Deep in the money
A call option with an exercise price substantially below the underlying stock's market price. Also put option with an exercise price substantially above the underlying stock's market price.

Deep out of the money
A call option with an exercise price substantially above the market price. Also put option with an exercise price substantially below the underlying stock's market price.

Default
1) The failure to make timely payment of interest or principal on a debt security or to otherwise comply with the provisions of a bond indenture. 2) In context of project financing, a technical default signals a project parameter is outside defined or agreed limits or a legal matter is not yet resolved.

Default interest
A higher interest rate payable after default.

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This dictionary contains 24549 terms.







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