Derivative

Dual-listed companies are public companies that are listed on two stock exchanges. The benefit of being on two exchanges means companies can increase their global or market exposure to investors, and gain access to more liquidity and capital, while being able to support their home country’s economy. More than 50 of New Zealand’s largest companies are dual-listed on both the NZX and the ASX. These dual-listed companies include Air NZ, Kathmandu, NZME, Chorus, Briscoe Group, Fonterra, and Spark NZ.

Some companies outside the US list on an American exchange through an ADR (American Depositary Receipt). A example is Australian resources company BHP (BHP), which lists on the ASX and the NYSE as an ADR.

Delisting occurs when a stock is removed from a stock exchange. It can happen either voluntarily, when a company chooses to leave the exchange, or involuntarily, when the exchange forces the company to delist. Some reasons for delisting are the company is no longer operating, is reducing costs or decision-making time for management teams, is merging with another public or private company, no longer meets the exchange’s listing requirements, is moving from being publicly-owned to privately-owned, or has declared bankruptcy. Investors who do not sell their shares before the delisting date will still be shareholders in the company, and the shares may be moved onto the OTC markets. Read more about delisting and shares on Hatch.

The Dow Jones Industrial Average (DJIA), often referred to as ‘the Dow’, is an index that tracks daily share price movements of 30 large US companies listed on the Nasdaq and the New York Stock Exchange (NYSE) across a range of sectors of the economy. It’s generally considered a benchmark for the health of the stock market and the US economy. The DJIA is a price-weighted index, meaning that higher-priced stocks have a greater impact on its movement, rather than market cap, which is the total dollar value of a company as decided by the share market. The DJIA, or ‘the Dow’ is often reported in financial news and is used by investors and analysts to assess market trends and sentiment. Read about the history and controversy of the Dow.

The Dow Jones & Company is one of the world’s largest financial media companies and has been owned by Rupert Murdoch's News Corporation since 2007. It was founded in 1882 by Charles Dow, Edward Jones and Charles Bergstresser to simplify financial news. Charles Henry Dow developed the Dow Jones Industrial Average (DJIA), which originally contained just 12 American companies. Dow Jones also founded The Wall Street Journal in 1889, and own it today, along with Barron’s Group, and provides data and intelligence solutions. Learn more about Dow Jones and the DJIA.

Dollar-cost averaging is an investment strategy that can help lower the amount you pay for your investments and manage risk when you’re buying shares in a company or exchange-traded fund (ETF). In simple terms, dollar-cost averaging is when you invest the same amount of money in a company or fund at regular intervals over a period of time. This strategy takes the guesswork out of monitoring daily share prices to calculate the best time to buy and the amount to pay. Learn more about dollar-cost averaging.

Dividend yield is a financial ratio that shows how much a company pays out in dividends each year relative to stock price. Aka, the dividend payment per share divided by the current stock price. A higher dividend yield can be appealing, but investors need to consider a company’s financial health and stock price movement. Mature, blue chip companies, and those in utility and consumer staple industries often have relatively higher dividend yields. Read which companies, ETFs and REITs pay the best dividends.

Profitable companies can decide to share their profits with shareholders and pay them out in a dividend. If you invest in companies that pay dividends, dividends will be paid into your Hatch account in USD, ready to re-invest. Learn more about dividends.

A digital ledger, or ledger, is a digital record that keeps track of all transactions or data. It’s a secure, unalterable list where everyone who looks through it can see what happened and when. When people talk about blockchain as being a digital ledger, they mean it’s a detailed digital notebook that stores all the important information.

Diversification lowers risk by spreading money over multiple investments to limit impact if one fails. In the share markets, investors may buy shares in many companies or exchange traded funds (ETF). Learn more about diversification.

A direct listing is a way for companies to list shares on a share market without going through an IPO. In a direct listing, the only shares listed are already owned by the company's founders, financial backers and employees. Unlike IPOs, no new shares are created. Direct listings can cut out middle agents, like underwriters, to save money. A direct listing allows existing investors and employees to sell their shares without new shares being issued and diluting existing shareholders. Without underwriters, there is no safety net. Companies like Palantir (PLTR), Roblox (RBLX), and Coinbase (COIN) have gone public in the US with a direct listing.

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Day trading is the act of buying and selling shares frequently. It's often used interchangeably with the term intraday trading, which refers to trading within one day, between the share markets opening and closing. While some professionals have experience in day trading, the term day trading can also refer to investors who buy shares in companies to sell them quickly - think day, week or month - for what they hope is a profit. Learn more about day trading.

A derivative is a financial contract with a value that depends on an asset, group of assets, or an index. These contracts can be traded on stock exchanges or over-the-counter (OTC). Derivatives are used to access multiple share markets and can be used for managing risk, hedging, or speculative reasons. They come in different types, including futures, options, swaps and forwards. While exchange-traded derivatives are regulated and standardised, some OTC derivatives are not, which means they can carry more risk.