Death Taxes
A general term used to refer to taxes against property or the transfer of assets upon the death of the owner, including all estate and inheritance taxes. Sometimes referred to as estate taxes.

Debt-To-Income Ratio
The ratio, expressed as a percentage, which results when a borrower's monthly payment obligation on long-term debts is divided by his or her gross monthly income.

Deduction
For tax purposes, the portion of an estate that does not generate tax (such as a marital deduction).

Deed of Trust
An instrument used in many states in place of a mortgage. Property is transferred to a trustee by the borrower (trustor) in favor of the lender (beneficiary), and reconveyed upon payment in full.

Deferred Income
The liability that occurs when a business receives payment in advance for a service to be rendered in the future.

Delinquency
Failure of the debtor to pay an obligation when due.

Depreciation
(1) Decrease in value to real property improvements caused by deterioration or obsolescence.
(2) A loss in value as an accounting procedure to use as a deduction for income tax purposes.

Discount—ARM
In an ARM with an initial rate discount, the lender gives up a number of percentage points in interest to give the borrower a lower rate and lower payments for part of the mortgage term (usually for one or three years). After the discount period, the ARM rate will probably go up depending on the index rate.

Discount Broker
As opposed to full service brokers, a discount broker charges a lower fee for executing buy and sell orders at the direction of the investor. Generally, discount brokers do not provide investment advice.

Diversification
The practice of investing among several categories of investments (including different industries, countries, or investment vehicles) to enhance return and reduce risk.

Dividend
Periodic distribution of earnings to stockholders, in the form of cash or additional shares of stock.

Donee/Donor
The recipient of a gift; the giver of a gift.

Dow Jones Industrial Average
The average performance of certain blue chip stocks, generally regarded as an indication of how the market at large is performing.

Downpayment
The difference between the sales price of real estate and the mortgage amount.