Archive for the 'V Glossary' Category

Waiting period

Waiting period

Waiting period

Time during which the SEC studies a firm’s registration statement. During this time the firm may distribute a preliminary prospectus.



Post sponsored by:

Voting rights

Voting rights

Voting rights

The right to vote on matters that are put to a vote of security holders. For example the right to vote for directors.



Post sponsored by:

Volume

Volume

Volume

This is the daily number of shares of a security that change hands between a buyer and a seller.



Post sponsored by:

Volatility risk

Volatility risk

Volatility risk

The risk in the value of options portfolios due to the unpredictable changes in the volatility of the underlying asset.



Post sponsored by:

Volatility

Volatility

Volatility

A measure of risk based on the standard deviation of investment fund performance over 3 years. Scale is 1-9; higher rating indicates higher risk. Also, the standard deviation of changes in the logarithm of an asset price, expressed as a yearly rate. Also, volatility is a variable that appears in option pricing formulas. In the option pricing formula, it denotes the volatility of the underlying asset return from now to the expiration of the option.



Post sponsored by:

Visible supply

Visible supply

Visible supply

New muni bond issues scheduled to come to market within the next 30 days.



Post sponsored by:

Virtual currency option

Virtual currency option

Virtual currency option

A new option contract introduced by the PHLX in 1994 that is settled in US$ rather than in the underlying currency. These options are also called 3-Ds (dollar denominated delivery).



Post sponsored by:

Vertical spread

Vertical spread

Vertical spread

Simultaneous purchase and sale of two options that differ only in their exercise price. See: horizontal spread.



Post sponsored by:

Vertical merger

Vertical merger

Vertical merger

A merger in which one firm acquires another firm that is in the same industry but at another stage in the production cycle. For example, the firm being acquired serves as a supplier to the firm doing the acquiring.



Post sponsored by:

Vertical analysis

Vertical analysis

Vertical analysis

The process of dividing each expense item in the income statement of a given year by net sales to identify expense items that rise faster or slower than a change in sales.



Post sponsored by: