V A NASDAQ stock symbol specifying that it is when-issued or when-distributed.
Vacation Home A home separate from an individual's primary residence that is used for recreational purposes and may also be rented out at unused times.
Valuation The process of determining the current worth of an asset or company. There are many techniques that can be used to determine value, some are subjective and others are objective.
Value Added The enhancement a company gives its product or service before offering the product to customers.
Value Added Monthly Index - VAMI An index that tracks the monthly performance of a hypothetical $1000 investment.
Value at Risk - VaR A technique used to estimate the probability of portfolio losses based on the statistical analysis of historical price trends and volatilities.
Value Chain A high-level model of how businesses receive raw materials as input, add value to the raw materials through various processes, and sell finished products to customers.
Value Date A future date used in determining the value of a product that fluctuates in price. Typically, you will see the use of value dates in determining the payment of products and accounts where there is a possibility for discrepancies due to differences in the timing of valuation. Such products include forward currency contracts, option contracts, and the interest payable or receivable on personal accounts.
Value Investing The strategy of selecting stocks that trade for less than their intrinsic value.
Value Line Index An equal-weighted stock index containing 1,700 companies from the NYSE, American Stock Exchange, NASDAQ, and over-the-counter market.Also known as the Value Line Investment Survey.
Value Stock A stock that is considered undervalued by a value investor. Common characteristics of such stocks include a high dividend yield and low price-to-book ratio.
Value Trap A stock that has experienced a large price depreciation and is mistaken to be a value stock.
Value-Based Pricing A pricing strategy in which a product's price is actively dependant upon its demand.
Vanilla Option An normal option with no special or unusual features.
Variability The possible range of outcomes for any given event.
Variable Annuity An insurance contract in which, at the end of the accumulation stage, the insurance company guarantees a minimum payment. The remaining income payments can vary depending on the performance of the managed portfolio.
Variable Cost A cost that changes in proportion to a change in a company's activity or business.
Variable Coupon Renewable Note - VCR A renewable fixed income security with variable coupon rates that are periodically reset.
Variable Death Benefit The amount paid to a decedent's beneficiary that is dependent on the investment performance of an insurance company's separate account.
Variable Interest Rate An interest rate that moves up and down based on the changes of an underlying interest rate index.
Variable Life Insurance Policy A life insurance contract that provides financial compensation to the named beneficiaries in the event of the insured's death. The insurance company guarantees payment of a minimum amount plus an additional sum according to the performance of a separate account, usually invested in equities or other relatively high-yielding securities.
Variable Price Limit A schedule of price variations above or below the accepted limits determined by the commodities exchanges for any one trading day.
Variance A measure of the dispersion of a set of data points around their mean value. It is a mathematical expectation of the average squared deviations from the mean.
Variance Swap A type of volatility swap where the payout is linear to variance rather than volatility. Therefore, the payout will rise at a higher rate than volatility
Variation Margin A variable margin payment that is made by clearing members to their respective clearing houses based upon adverse price movements of the futures contracts that these members hold.
Vault Receipt A document frequently used as a delivery instrument to indicate ownership of precious metals stored in a bank, warehouse, or depository. Also known as warrant or warehouse receipt for metals.
VEB In currencies, this is the abbreviation for the Venezuelan Bolivar.
Vega The amount that the price of an option changes compared to a 1% change in volatility.
Velocity (of Money) A term used to describe the rate at which money is exchanged from one transaction to another.
Vendor Financing The lending of money by a company to one of its customers so that the customer can buy products from them. By doing this, the company increases their sales even though they are basically buying their own products.
Venture Capital Money and resources made available to startup firms and small businesses with exceptional growth potential.
Venture Capital Funds An investment fund that manages money from investors seeking private equity stakes in small and medium-size enterprises with strong growth potential.
Venture Capitalist An investor who provides capital to either start-up ventures or support small companies who wish to expand but do not have access to public funding.
Vertical Integration When a company expands its business into areas that are at different points of the same production path.
Vertical Market A focused market that is only able to meet the need of one specific industry.
Vertical Merger A merger between two companies producing different goods or services for one specific finished product.
Vertical Spread An options trading strategy with which a trader makes a simultaneous purchase and sale of two options of the same type that have the same expiration dates but different strike prices.
Vested Interest A financial or personal stake one entity has in an asset, security, or transaction.
Vesting A process by which employees accrue non-forfeitable rights to employer contributions that are made to the employee's qualified retirement plan account.
Viager A (French) real estate agreement where property is sold on a reverse annuity basis. Also known as a Reverse Annuity Mortgage or Charitable Remainder Trust.
Viatical Settlement An arrangement in which someone with a terminal disease sells his or her life insurance policy at a discount from its face value for ready cash. The buyer cashes in the full amount of the policy when the original owner dies.
Visibility The extent to which future projections are probable.
Visible Supply The deliverable commodities in licensed warehouses and approved delivery facilities.
VIX - CBOE Volatility Index A volatility index for the Chicago Board Options Exchange, known by its ticker symbol VIX. It is calculated by taking a weighted average of the implied volatility from eight calls and puts on the S&P 100 index.
VND In currencies, this is the abbreviation for the Vietnamese Dong.
Volatility 1. A statistical measure of the tendency of a market or security to rise or fall sharply within a period of time.
2. A variable in option pricing formulas that denotes the extent to which the return of the underlying asset will fluctuate between now and the expiration of the option.
Volatility Quote Trading A method of quoting option contracts whereby bids and asks are quoted according to their implied volatilities rather than prices.
Volatility Smile A common graphical shape that results from plotting the strike price and implied volatility of a group of options with the same expiration date.
Volatility Swap A forward contract whose underlying is the volatility of a given product.
Volume The number of shares or contracts traded in a security or an entire market during a given period.
Volume of Trade The quantity of futures contracts transacted over a specified period of time during a trading day.
Volume Price Trend Indicator - VPT A technical indicator consisting of a cumulative volume line that adds or subtracts a multiple of the percentage change in share price trend and current volume, depending upon their upward or downward movements.
Volume Weighted Average Price - VWAP A trading benchmark particularly used in pension plans. VWAP is calculated by adding up the dollars traded for every transaction (price times shares traded) and then dividing by the total shares traded for the day.
Voluntary Compliance An assumption or principle that taxpayers will comply with tax laws and, more importantly, accurately report their income and deductions honestly.
Voodoo Accounting Any form of accounting that does not follow principles of conservatism.
Voodoo Economics A slanderous term used by President George H. W. Bush in reference to President Reagan's economic policies known as Reaganomics.
Vostro Account The account a correspondent bank, usually U.S. or UK, holds on behalf of a foreign bank. Also known as a loro account.
Voting Right The right of a stockholder to vote on matters of corporate policy as well as on who is to compose the board of directors.
Voting Shares Shares that give the stockholder the right to vote on matters of corporate policy making as well as who will compose the members of the board of directors.
Voting Trust A trust legally created in order to combine the voting power of shareholders through the transference of legal title and voting rights to a designated trustee for a set duration.
Voting Trust Agreement A contractual agreement detailing the specifics of the voting trust, including the name of its trustee, the effective timeframe, and the nature of its formation.