Investor Glossary-diamondsInvestor Glossary-diamondsInvestor Glossary-diamondsInvestor Glossary-diamondsInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Diamonds

The HTML to link to this page
 

DIAMONDS are Exchange-Traded Funds (ETFs) trading on the American Stock Exchange (AMEX). DIAMONDS represent units of beneficial ownership in the DIAMONDS Trust, a unit investment trust holding a portfolio of the 30 stocks that comprise the Dow Jones Industrial Average (Dow or DJIA). DIAMONDS closely track (before expenses) the DJIA. Their value approximates 1/100 the value of the DJIA. DIAMONDS work like no-load index funds but trade like stocks affording the investor benefits of both. They are passively managed, so their fund management charges are comparatively low. DIAMONDS offer a diversified portfolio, monthly cash dividends and the ability to buy or sell them at any time during the trading day. DIAMONDS are not subject to the "uptick rule" unlike stocks and can be sold short even in a downtick. Also investors can trade DJX options against each 100 units of DIAMONDS they hold. DIAMONDS can depreciate in value when DJIA goes down. Price may not conform to the real market if trading is halted in any of the component stocks of DJIA, as fund units continue to be traded.



Rate this Diamonds definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: in escrow, wholly-owned subsidiary, risk management, phantom income, class C shares, deferred tax, minority interest, 1031 exchange, command economy, stock market close, VIX, 144a, average price per share, cancelled check, deferred revenue, 401a, 1035 exchange, EBITDA, required rate of return, debt service coverage, option premium, current ratio, margin rate, open position, limit order, reverse mortgage, FICO score, Zero Cost Collar, covered put, ex-dividend, FTSE, real GDP, liquidity ratio, LIBOR, labor relations, balance sheet, implied volatility, Key Rate Duration, irrevocable trust, diluted share, quality assurance, retained earnings, stock split, inflation, APR, ex-dividend date, dividends payable, annual return, per diem


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Home | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2016 Investor Glossary - All rights reserved - Terms of Use