Diversified option
An option which generally invests in more than three asset sectors.
Diversification
The process whereby funds are spread among classes of securities and geographical localities in order to distribute and control risk. As a result, the return on the portfolio as a whole varies less than the return on smaller lots of individual stocks.
Distressed Debt
A private equity investment strategy that involves purchasing discounted bonds of a financially distressed firm. Distressed debt investors frequently convert their holdings into equity and become actively involved with the management of the distressed firm.
Direct investment
Taking a stake in a company or joint venture which brings a say in how the operation is run, although it does not necessarily give a controlling interest.