Term Main definition
Deal Flow

A term meaning the rate at which deals are initiated and successfully concluded.


An instrument that evidences the issuer's borrowing from the lender to whom the company issues a debenture.

Debt Coverage

A measurement of a borrowing company's ability to pay debt.

Debt Coverage Ratio

A measurement of a company's ability to pay debt.

Debt Security

A security evidencing a loan by the purchaser of the debt security and a debt obligation of the company issuing the debt security, and examples of debt securities would include notes and debentures.

Debt Service

The category of costs and expenses that includes payments made on any indebtedness.

Debt Service Ratio

The ratio comparing the borrower's income (or any other chosen measure of ability to pay) with loan payment obligations ("debt service").

Deemed Liquidation Event

Among the most important terms of any series of shares of preferred stock is the liquidation provision because it describes what the preferred stock will receive in the event of a liquidation or dissolution of the issuing company.

Definitive Agreement

The final and legally binding and enforceable signed written agreement.

Demand Rights

The right of an investor to demand that the corporation file a registration statement under the U.S. Securities Act of 1933 for a registration for resale of his, her or its shares of the corporation's common stock.


A reduction in the percentage ownership, or in the value of equity ownership, of a given stockholder caused by the issuance of additional equity securities or rights to acquire, convert into or exchange for equity securities.

Dilution Protection

The protection that an investor seeks in order to be able to continually own the same percentage of the company that such investor owned at the time of making its investment.


The individuals who are members of a boards of directors of corporations.

Disclosure Schedule

A schedule that is attached to a definitive agreement that describes exceptions to the representation and warranties being made by one of the parties.

Discount Rate

The annual percentage rate used to discount future cash flows and thereby determine the present value of a series of future cash flows.