Dealer

For the London use see "Jobber."

Defaulter

A member of the London Stock Exchange who is unable to fulfil his engagements is termed a "defaulter" and the Rules provide that he shall be publicly so declared upon the Exchange and cease to be a member. (See " Hammered.")

Deferred Shares (Or Stock)

The English plan provides that dividends are only paid upon this class of stock out of earnings - if any - that remain after paying interest or dividends upon all securities having prior claim, such as "debentures," "preferred shares," "preferred ordinary stock," etc. Under the English system of capitalization, "deferred stock is

Addenda the last security in a company to share in the distribution of earnings, and thus is the most speculative class.

Bewes, in his excellent work, Stock Exchange Law and Practice, says, "Deferred shares are usually, but not always, invented with the object of rewarding promoters or vendors with large profits for small subscriptions. In such a case they are sometimes called Founders' shares. They generally participate after the ordinary shareholders have received a fixed minimum dividend."

Definitive Bonds

The actual bonds for which "Temporary Receipts" (see that subject) are often given, and for which the latter are exchanged.

Demand Deposits

All deposits that are subject to withdrawal from a banking institution at any time during business hours without notice. Under the "Federal Reserve Act," however, they are defined as comprising "all deposits payable within 30 days."

Deposit Certificate

Same as "Certificate of Deposit."

(See that subject.)

Development And General Mortgage

See "Development Mortgage."

Development Mortgage

Usually issued by a railroad corporation - but may be by street railways or others - for the purpose of providing funds for additions, improvements, etc. Thus, an issue may be a "junior lien" upon all or a part of the property, or may be the ordinary "general mortgage," to both of which subjects refer. A typical example of a "development and general mortgage" is that of the Southern Railway Co., which has outstanding an issue due April 1st, 1956, created for the purpose of funding certain capital obligations and divisional prior liens, and to secure the means for future additions, improvements, etc., upon the entire system. Eventually, this issue should become a first lien upon certain railroads absolutely owned, and a second lien on other portions, subject to existing divisional liens, and a general lien upon certain other portions.

Difference

To understand the London use of this term, it is necessary to clearly understand their "fortnightly settlement," to which subject refer.

The "difference" is the amount to be paid or received by the speculative operator at the time of the settlement. It represents the difference between the price at which a transaction - i. e. "bargain" - was entered into, or the price at which it may have been "carried over" at the last previous settlement, and the "making-up price" of the current settlement.