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Daily Yield: See 1-Day Yield.

Debenture: Debt instrument issued by a corporation that is unsecured by other collateral and is backed only by the integrity of the issuer.

Debt Obligation: Bond, note or money market instrument issued to borrow funds for both long- and short-term financing with a defined repayment obligation.

Declaration Date: Day when a fund's directors announce that dividends will be paid.

Default: Failure of a securities issuer to pay principal and interest on outstanding securities as the obligations come due.

Deferred Annuity: Annuity contract that guarantees the payment of income, either in installments or a lump-sum, will be made at an agreed upon future time.

Deferred Equity Securities: Warrants and convertible securities are issued to enable stockholders to buy a specific number of shares of common stock at a specified price within a certain time period (as in the case of warrants), or to exchange them for a certain number of shares of common stock (as in the case of convertibles). The firm ends up with more equity in its capital structure and the number of shares outstanding increases.

Derivatives: A derivative security is an equity, debt, or futures instrument stemmed from specific underlying securities or commodities. It also is defined as a financial instrument that is traded separately and has value determined by another security.

Derivatives Risk: A small investment in derivatives could have a potentially large impact on a fund's performance. The use of derivatives involves risks different from, or possibly greater than, the risks associated with investing directly in the underlying assets. Derivatives can be highly volatile, illiquid and difficult to value, and there is the risk that changes in the value of a derivative held by the fund will not correlate with a fund's other investments.

Direct Investment: Investment forwarded by a client directly to the processing bank, instead of a dealer, and is applied to the account to purchase shares. Price is determined by receipt date.

Direct Rollover: Process by which an eligible rollover distribution is paid directly to an IRA or IRA Rollover Account from the employer-sponsored retirement plan, avoiding the 20% income tax withholding requirement.

Disclosure: All information provided to investors that might bear on an investment decision or otherwise define a security offering. Federal rules and regulations govern required disclosures pertaining to various kinds of securities offerings.

Disclosure Statement: Statement sent to all clients with Individual Retirement Accounts (IRA) describing the income tax consequences associated with this plan.

Discount: Amount at which a security is selling below its face value. Also applies to closed-end funds, options, etc.

Distribution: (1) Dividends and capital gains paid to the client from a fund's earnings. (2) Client liquidation of assets from a retirement account.

Distribution Option: Code that indicates whether dividends and capital gains are paid in cash or reinvested in additional shares.

Distribution Yield: The most recent month's dividends annualized and divided by the period ending NAV. By comparison, the 12-month yield is the sum of the last 52 weeks of dividends divided by the period ending NAV.

Diversification: Denotes the spreading of risk by putting assets in several categories of investments — stocks, bonds, money market instruments, for instance, or in several industries, or in a mutual fund with a wide array of securities in one portfolio.

Diversified Investment Company: Open- or closed-end fund or unit trust that under the Investment Company Act of 1940, is managed not having more than 5% of its assets in the securities of any one issuer or commodity and may not own more than 10% of the voting shares of any one issuer, with 75% of the fund's total assets cash, cash equivalents or securities.

Dividend: Net earnings on securities in a fund's portfolio, paid to clients on a per share basis.

Dollar Cost Averaging: Investment approach involving the purchase of uniform dollar amounts of securities at regular time periods. Allows the investor to purchase more shares when prices are low, and vice versa, in an effort to reach a beneficial total average cost. It does not assure a profit and if an investor sells shares at depressed prices a loss will be incurred. Shares must be purchased consistently.

Dow Jones Industrial Average: This market average indicator is based on the average market price of 30 blue chip (NYSE) stocks. The average is found by adding the prices of the 30 stocks and dividing by a denominator that has been adjusted for stock splits, stock dividends, and substitutions of stocks. It represents about 25% of the NYSE market capitalization. This is a total return index with dividends reinvested, as calculated by Wilshire Associates.

Duration: The concept that bond price volatility can be measured by the "length" of a bond. It is a weighted-average term-to-maturity of the bond's cash flows, the weights being the present value of each cash flow as a percentage of the bond's full price.