Dividend

A payment to stockholders who own a specific stock.  Some companies distribute part of their earnings directly to shareholders in the form of money or additional stock.  This payment is referred to a dividend.  Not all companies pay out dividends.  They’re a...

Diversification

A technique used by traders and investors to reduce risk of loss.  It is done by allocating investments across many different industries, companies, or even financial institutions.  It simply indicates a wide variety of investments within a portfolio, thus ensuring if...

Distribution Pattern

A technical analysis pattern used as part of the Accumulation/Distribution Indicator (A/D).  A bullish stock will display strong signs that it’s being accumulated (of showing a high level of demand).  The opposite is also true in that a bearish stock will show...

DeFi

A portmanteau of “decentralized finance,” DeFi is an umbrella term various decentralized cryptocurrency and blockchain projects aiming to disrupt financial intermediaries.  DeFi is different from a cryptocurrency using a blockchain model (eg, bitcoin) in...

Capitulation

When investors surrender previous gains by selling their positions on a security during periods of market decline.  A bear market is often a major contributing factor to capitulation.  In theory, many capitulations should signal the end of a bottom, as if many are...