Financial Glossary
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V
- A Nasdaq stock symbol specifying that it is when-issued or when-distributed.
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V-Shaped Recovery
- A type of economic recession and recovery that resembles a "V" shape in charting. Specifically, a V-shaped recovery represents the shape of the chart of certain economic measures, such as employment, GDP and industrial output. A V-shaped recovery involves a sharp decline in these metrics followed by a sharp rise back to its previous peak.
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VA Loan
- A mortgage loan program established by the United States Department of Veterans Affairs to help veterans and their families obtain home financing. The Department of Veterans Affairs does not directly originate VA loans; instead, they establish the rules for those who may qualify, dictate the terms of the mortgages offered and insure VA loans against default.
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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.
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Valoren Number
- An identification number assigned to financial instruments in Switzerland. These numbers are similar to the CUSIP numbers that are used in Canada and the U.S. A typical valoren number is between six to nine digits in length.
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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.
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Valuation Analysis
- A form of fundamental analysis that looks to compare the valuation of one security to another, to a group of securities or within its own historical context. Valuation analysis is done to evaluate the potential merits of an investment or to objectively assess the value of a business or asset.
Valuation analysis is one of the core duties of a fundamental investor, as valuations (along with cash flows) are typically the most important drivers of asset prices over the long term.
- A form of fundamental analysis that looks to compare the valuation of one security to another, to a group of securities or within its own historical context. Valuation analysis is done to evaluate the potential merits of an investment or to objectively assess the value of a business or asset.
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Value Added
- The enhancement a company gives its product or service before offering the product to customers.
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Value Added Monthly Index - VAMI
- An index that tracks the monthly performance of a hypothetical $1000 investment.
The calculation for the current month's VAMI is:
= Previous VAMI x (1 + Current Rate of Return)
- An index that tracks the monthly performance of a hypothetical $1000 investment.
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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.
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Value Averaging
- An investing strategy that works like dollar cost averaging (DCA) in terms of steady monthly contributions, but differs in its approach to the amount of each monthly contribution. In value averaging, the investor sets a target growth rate or amount on his or her asset base or portfolio each month, and then adjusts the next month's contribution according to the relative gain or shortfall made on the original asset base.
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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.
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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. Also referred to as "valuta".
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Value Fund
- A stock mutual fund that primarily holds stocks that are deemed to be undervalued in price and that are likely to pay dividends. Value funds are one of three main mutual fund types; the other two are growth and blend (a mix of value and growth stocks) funds.
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Value Investing
- The strategy of selecting stocks that trade for less than their intrinsic values. Value investors actively seek stocks of companies that they believe the market has undervalued. They believe the market overreacts to good and bad news, resulting in stock price movements that do not correspond with the company's long-term fundamentals. The result is an opportunity for value investors to profit by buying when the price is deflated.
Typically, value investors select stocks with lower-than-average price-to-book or price-to-earnings ratios and/or high dividend yields.
- The strategy of selecting stocks that trade for less than their intrinsic values. Value investors actively seek stocks of companies that they believe the market has undervalued. They believe the market overreacts to good and bad news, resulting in stock price movements that do not correspond with the company's long-term fundamentals. The result is an opportunity for value investors to profit by buying when the price is deflated.
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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".
- An equal-weighted stock index containing 1,700 companies from the NYSE, American Stock Exchange, Nasdaq and over-the-counter market.
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Value Proposition
- A business or marketing statement that summarizes why a consumer should buy a product or use a service. This statement should convince a potential consumer that one particular product or service will add more value or better solve a problem than other similar offerings.
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Value Stock
- A stock that tends to trade at a lower price relative to it's fundamentals (i.e. dividends, earnings, sales, etc.) and thus considered undervalued by a value investor. Common characteristics of such stocks include a high dividend yield, low price-to-book ratio and/or low price-to-earnings ratio.
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Value Trap
- A stock that has experienced a large price depreciation and is mistaken to be a value stock.
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Value-Added Tax - VAT
- A type of consumption tax that is placed on a product whenever value is added at a stage of production and at final sale. Value-added tax is most often used in the European Union. The amount of VAT that the user pays is the cost of the product less any of the costs of materials used in the product that have already been taxed.
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Value-Based Pricing
- A pricing strategy in which a product's price is actively dependant upon its demand.
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Vancouver Stock Exchange (VAN) .V
- A defunct stock exchange formerly located in Vancouver, British Columbia. A large number of small cap and exploration companies' stocks were traded on this exchange. The Vancouver Stock Exchange finally merged into the Canadian Venture Exchange in 1999.
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Vanguard Exchange-Traded Funds
- A class of ETFs offered by Vanguard and traded like any other share on the American Stock Exchange. There are presently 27 Vanguard ETFs with underlying indexes covering both individual sectors (such as materials and energy)as well as domestic and international indexes. Previously known as VIPERS, the ETFs are designed to track their underlying indexes as closely as possible and offer the increased flexibility of intraday trading.
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Vanilla Option
- A normal option with no special or unusual features.
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Vanishing Premium Policy
- A vanishing premium policy is a form of participating whole life insurance where the policyholder can use the dividends from the policy to pay the premium. Over time, the dividends will increase to the point that they cover the entire cost of the premiums.
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Variability
- The possible range of outcomes for any given event.
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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.
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Variable Cost
- A cost that changes in proportion to a change in a company's activity or business.
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Variable Coupon Renewable Note - VCR
- A renewable fixed income security with variable coupon rates that are periodically reset.
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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.
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Variable Interest Entity - VIE
- An entity (investee) in which the investor has obtained less than a majority-owned interest, according to the United States Financial Accounting Standards Board. A variable interest entity (VIE) is subject to consolidation if certain conditions exist.
If a firm is the primary beneficiary of a VIE, the holdings must be disclosed on the balance sheet. The primary beneficiary is defined as the person or company with the majority of variable interests.
Also known as a conduit.
- An entity (investee) in which the investor has obtained less than a majority-owned interest, according to the United States Financial Accounting Standards Board. A variable interest entity (VIE) is subject to consolidation if certain conditions exist.
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Variable Interest Rate
- An interest rate that moves up and down based on the changes of an underlying interest rate index.
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Variable Life Insurance Policy
- A form of whole life insurance, variable life insurance provides permanent protection to the beneficiary upon the death of the policy holder. This type of insurance is generally the most expensive type of cash-value insurance because it allows you to allocate a portion of your premium dollars to a separate account comprised of various instruments and investment funds within the insurance company's portfolio such stocks, bonds, equity funds, money market funds and bond funds. In addition, because of investment risks, variable policies are considered securities contracts and are regulated under the federal securities laws; therefore, they must be sold with a prospectus.
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Variable Prepaid Forward Contracts
- An agreement to give a predetermined number of shares to a brokerage firm, with the stipulation of officially transferring title at some future date. The original owner receives a high percentage of the value of the shares at the time of transfer and receives a portion of the gains at the official transferring. If there was a loss during this time period, the brokerage absorbs it.
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Variable Price Limit
- A schedule of price variations above or below the accepted limits determined by the commodities exchanges for any one trading day.
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Variable Rate Demand Note (VRDN)
- A debt instrument that represents borrowed funds that are payable on demand and accrue interest based on a prevailing money market rate, such as the prime rate. The interest rate applicable to the borrowed funds is specified from the outset of the debt, and is typically equal to the specified money market rate plus an extra margin.
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Variable Ratio Write
- An option strategy in which an investor holds a long position in the underlying asset and writes multiple call options at varying strike prices.
Variable ratio writes have limited profit potential because the trader is only looking to capture the premiums paid for the call options. This strategy is best used on stocks with limited volatility.
- An option strategy in which an investor holds a long position in the underlying asset and writes multiple call options at varying strike prices.
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Variable Universal Life Insurance - VUL
- A form of cash-value life insurance that offers both a death benefit and an investment feature. The premium amount for variable universal life insurance (VUL) is flexible and may be changed by the consumer as needed, though these changes can result in a change in the coverage amount. The investment feature usually includes "sub-accounts," which function very similar to mutual funds and can provide exposure to stocks and bonds. This exposure offers the possibility of an increased rate of return over a normal universal life or permanent insurance policy.
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Variable-Rate Certificate Of Deposit
- A certificate of deposit (CD) with a variable interest rate. The rate can be determined by a number of mediums, such as the prime rate, consumer price index, treasury bills or a market index. The amount paid out is usually based on a percentage difference between the beginning index and the final index.
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Variance
- A measure of the dispersion of a set of data points around their mean value. Variance is a mathematical expectation of the average squared deviations from the mean.
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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
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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.
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Vasicek Interest Rate Model
- A method of modeling interest rate movement that describes the movement of an interest rate as a factor of market risk, time and equilibrium value that the rate tends to revert towards. This stochastic model is often used in the valuation of interest rate futures.
The Vasicek interest rate model values the instantaneous interest rate using the following equation:
drt = a(b-rt)dt +sdWt
Where Wt is the random market risk (represented by the Wiener process)
t represents time
a(b-rt) represents the expected change in the interest rate at t (drift factor)
a is the speed of reversion
b is the long-term level of the mean
s is the volatility at the time
- A method of modeling interest rate movement that describes the movement of an interest rate as a factor of market risk, time and equilibrium value that the rate tends to revert towards. This stochastic model is often used in the valuation of interest rate futures.
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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.
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VEB (Venezuelan Bolivar)
- The currency abbreviation for the Venezuelan bolivar (VEB), the currency for Venezuela from 1879 to January 2008. The Venezuelan bolivar was made up of 100 céntimos and was presented with the symbol Bs. The Venezuelan bolivar was replaced with the bolivar fuerte (VEF) at a rate of 1000:1 because the bolivar was so devalued due to inflation. Bolivar fuerte is translated in English as "strong bolivar."
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Vega
- The amount that the price of an option changes compared to a 1% change in volatility.
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Velocity of Money
- A term used to describe the rate at which money is exchanged from one transaction to another.
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Vendor Financing
- The lending of money by a company to one of its customers so that the customer can buy products from it. By doing this, the company increases its sales even though it is basically buying its own products.
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Vendor Note
- A type of debt instrument used in a particular type of short-term loan agreement in which the seller of goods or merchandise sells them to the buyer, but also provides financing for the buyer in the form of a vendor note. The loan is secured by the inventory being sold to the buyer as well as pledges of the buyer's business assets and similar forms of security used to help lessen the perceived risk of the buyer's default.
Also known as a seller note.
- A type of debt instrument used in a particular type of short-term loan agreement in which the seller of goods or merchandise sells them to the buyer, but also provides financing for the buyer in the form of a vendor note. The loan is secured by the inventory being sold to the buyer as well as pledges of the buyer's business assets and similar forms of security used to help lessen the perceived risk of the buyer's default.
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Vendor Take-Back Mortgage
- A type of mortgage in which the seller offers to lend funds to the buyer to help facilitate the purchase of the property. The take-back mortgage often represents a secondary lien on the property, as most buyers will have a primary source of funding other than the seller.
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Venture Capital
- Financing for new businesses. In other words, money provided by investors to startup firms and small businesses with perceived, long-term growth potential. This is a very important source of funding for startups that do not have access to capital markets. It typically entails high risk for the investor, but it has the potential for above-average returns.
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Venture Capital Funds
- An investment fund that manages money from investors seeking private equity stakes in startup and small- and medium-size enterprises with strong growth potential. These investments are generally characterized as high-risk/high-return opportunities.
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Venture Capitalist
- An investor who either provides capital to startup ventures or supports small companies that wish to expand but do not have access to public funding.
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Vertical Analysis
- A method of financial statement analysis in which each entry for each of the three major categories of accounts (assets, liabilities and equities) in a balance sheet is represented as a proportion of the total account. The main advantages of analyzing a balance sheet in this manner is that the balance sheets of businesses of all sizes can easily be compared. It also makes it easy to see relative annual changes in one business.
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Vertical Equity
- A method of collecting income tax in which the taxes paid increase with the amount of earned income. The driving principle behind vertical equity is the notion that those who are more able to pay taxes should contribute more than those who are not.
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Vertical Integration
- When a company expands its business into areas that are at different points of the same production path.
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Vertical Market
- A focused market that is only able to meet the need of one specific industry.
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Vertical Merger
- A merger between two companies producing different goods or services for one specific finished product.
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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.
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Very Small Aperture Terminal - VSAT
- A type of two-way satellite that transmits both narrow and broadband data to satellites in orbit. The data is then redirected to other remote terminals or hubs around the planet. VSATs are mainly used for wireless transmission of real-time data.
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Vest Fleece
- A slang term used to describe a situation in which a company's executives accelerate the vesting of their employee stock options. Usually, accelerated vesting is preceded by a period of excessively high employee stock option grants. The result of vest fleecing is that shareholders' ownership is reduced, and option holders are able to turn their options into stock in a shorter time period than if they had not accelerated vesting.
- A slang term used to describe a situation in which a company's executives accelerate the vesting of their employee stock options. Usually, accelerated vesting is preceded by a period of excessively high employee stock option grants. The result of vest fleecing is that shareholders' ownership is reduced, and option holders are able to turn their options into stock in a shorter time period than if they had not accelerated vesting.
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Vested Interest
- 1. The lawful right of an individual or entity to gain access to tangible or intangible property now or in the future. A vested interest is an entitled benefit, which can be conveyed to a separate party. There is usually a vesting period before the claimant can gain access to the asset or property. Due to the right of ownership, the benefit can not be taken away i.e. the vested funds are not contingent on any action or inaction.
2. A financial or personal stake one entity has in an action, separate entity or commitment, with the expectation of realized benefits in the present or the future.
- 1. The lawful right of an individual or entity to gain access to tangible or intangible property now or in the future. A vested interest is an entitled benefit, which can be conveyed to a separate party. There is usually a vesting period before the claimant can gain access to the asset or property. Due to the right of ownership, the benefit can not be taken away i.e. the vested funds are not contingent on any action or inaction.
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Vesting
- The process by which employees accrue non-forfeitable rights over employer contributions that are made to the employee's qualified retirement plan account.
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Veteran's Administration
- A U.S. cabinet department that provides patient care, veterans' benefits, and other services to veterans of the
- A U.S. cabinet department that provides patient care, veterans' benefits, and other services to veterans of the
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Vetting
- A thorough and diligent review of a prospective person or project prior to a hiring or investment decision. Vetting most often refers to an individual or group, such as how a board of directors will "vet out" a prospective CEO or other top management position. Vetting of potential suppliers of a contract or business service is a common practice for the managers of a publicly-traded company, where past business results, costs and personal relationships all figure into the final decision.
- A thorough and diligent review of a prospective person or project prior to a hiring or investment decision. Vetting most often refers to an individual or group, such as how a board of directors will "vet out" a prospective CEO or other top management position. Vetting of potential suppliers of a contract or business service is a common practice for the managers of a publicly-traded company, where past business results, costs and personal relationships all figure into the final decision.
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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.
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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. Also referred to as a Life Settlement.
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Viator
- A person with terminal or a life-threatening illness who sells their life insurance policy at a steep discount to an insurance firm to pay for their health-care costs or improve their quality of life.
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Vice Fund
- A mutual fund that invests in gaming, such as casino operators and gaming equipment, alcohol, tobacco and aerospace/defense sectors. The fund invests in both domestic and foreign-based equities, and holdings range from small cap to mega cap companies.
The fund has been in operation since 2002 and focuses on so-called "vices" that are considered by many to be socially irresponsible investments, or "sin stocks".
- A mutual fund that invests in gaming, such as casino operators and gaming equipment, alcohol, tobacco and aerospace/defense sectors. The fund invests in both domestic and foreign-based equities, and holdings range from small cap to mega cap companies.
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Vienna Stock Exchange (WBAG) .VI
- Also known as the Wiener Borse AG, this exchange is located in Vienna, Austria. It is one of the most established stock exchanges in all of southeastern Europe. The Vienna Stock Exchange facilitates about 60% of all stocks traded in Austria.
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Vintage
- A slang term used by mortgage-backed securities (MBS) traders and investors to refer to an MBS that is seasoned over some time period. MBSs typically have maturities around 30 years, and a particular issue's 'vintage' will expose the holder to less prepayment and default risk, although this decreased risk also limits price appreciation.
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Vintage Year
- The year in which the first influx of investment capital is delivered to a project or company. This marks when capital is contributed by venture capital, private equity fund or a partnership drawing down from its investors.
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VINX 30
- A stock index that tracks the 30 largest companies with the most heavily-traded stocks on the Nordic stock exchanges. VINX 30 is denominated in euros and is an adjustable free-floating index. It tracks stocks that trade on the exchanges in Helsinki, Copenhagen and Stockholm.
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Viral Marketing
- Internet advertising or marketing that spreads exponentially whenever a new user is added. Viral marketing assumes that as each new user starts using the service or product, the advertising will go to everyone with whom that user interacts.
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Visibility
- The extent to which future projections are probable.
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Visible Supply
- The deliverable commodities in licensed warehouses and approved delivery facilities.
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VIX - CBOE Volatility Index
- The ticker symbol for the Chicago Board Options Exchange (CBOE) Volatility Index, which shows the market's expectation of 30-day volatility. It is constructed using the implied volatilities of a wide range of S&P 500 index options. This volatility is meant to be forward looking and is calculated from both calls and puts. The VIX is a widely used measure of market risk and is often referred to as the "investor fear gauge".
There are three variations of volatility indexes: the VIX tracks the S&P 500, the VXN tracks the Nasdaq 100 and the VXD tracks the Dow Jones Industrial Average.
- The ticker symbol for the Chicago Board Options Exchange (CBOE) Volatility Index, which shows the market's expectation of 30-day volatility. It is constructed using the implied volatilities of a wide range of S&P 500 index options. This volatility is meant to be forward looking and is calculated from both calls and puts. The VIX is a widely used measure of market risk and is often referred to as the "investor fear gauge".
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VIX Option
- A type of non-equity option that uses the CBOE Volatility Index as the underlying asset. This is the first exchange-traded option that gives individual investors the ability to trade market volatility. Trading VIX options can be a useful tool for investors wanting to hedge their portfolios against sudden market declines, as well as to speculate on future moves in volatility.
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VND (Vietnamese Dong)
- The currency abbreviation for the Vietnamese dông (VND), the currency for Vietnam. The Vietnamese dông is made up of 10 hào and 100 xu, and is often presented with the symbol d. Although the dông is made up of two different subunits, neither have been used in Vietnam for many years.
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Volatility
- 1. A statistical measure of the dispersion of returns for a given security or market index. Volatility can either be measured by using the standard deviation or variance between returns from that same security or market index. Commonly, the higher the volatility, the riskier the security.
2. A variable in option pricing formulas showing the extent to which the return of the underlying asset will fluctuate between now and the option's expiration. Volatility, as expressed as a percentage coefficient within option-pricing formulas, arises from daily trading activities. How volatility is measured will affect the value of the coefficient used.
- 1. A statistical measure of the dispersion of returns for a given security or market index. Volatility can either be measured by using the standard deviation or variance between returns from that same security or market index. Commonly, the higher the volatility, the riskier the security.
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Volatility Quote Trading
- A method of quoting option contracts whereby bids and asks are quoted according to their implied volatilities rather than prices.
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Volatility Skew
- The difference in implied volatility (IV) between out-of-the-money, at-the-money and in-the-money options. Volatility skew, which is affected by sentiment and the supply/demand relationship, provides information on whether fund managers prefer to write calls or puts.
Also known as "vertical skew".
- The difference in implied volatility (IV) between out-of-the-money, at-the-money and in-the-money options. Volatility skew, which is affected by sentiment and the supply/demand relationship, provides information on whether fund managers prefer to write calls or puts.
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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.
- A common graphical shape that results from plotting the strike price and implied volatility of a group of options with the same expiration date.
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Volatility Swap
- A forward contract whose underlying is the volatility of a given product.
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Volume
- The number of shares or contracts traded in a security or an entire market during a given period of time. It is simply the amount of shares that trade hands from sellers to buyers as a measure of activity. If a buyer of a stock purchases 100 shares from a seller, then the volume for that period increases by 100 shares based on that transaction.
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Volume of Trade
- The quantity of futures contracts transacted over a specified period of time during a trading day.
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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.
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Volume Weighted Average Price - VWAP
- A trading benchmark used especially in pension plans. VWAP is calculated by adding up the dollars traded for every transaction (price multiplied by number of shares traded) and then dividing by the total shares traded for the day.
- A trading benchmark used especially in pension plans. VWAP is calculated by adding up the dollars traded for every transaction (price multiplied by number of shares traded) and then dividing by the total shares traded for the day.
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Volumetric Production Payment - VPP
- A type of structured investment that involves the owner of an oil and gas interest selling a specific volume production in that field or property. The investor receives a stated monthly quota – often in raw output, which is then marketed by the VPP buyer – or a specified percentage of the monthly production achieved at the given property.
A VPP deal is typically set to expire after a certain length of time or after a specified aggregate total volume of the commodity has been delivered. A VPP interest is considered a non-operating asset, akin to a royalty-payment system. If the producer can’t meet the supply quota for a given month (or whatever schedule is used), the unmet portion will be made up for in the next cycle, and so on until the buyer is made financially whole.
Buyers could include investment banks, hedge funds, energy companies and insurance companies.
- A type of structured investment that involves the owner of an oil and gas interest selling a specific volume production in that field or property. The investor receives a stated monthly quota – often in raw output, which is then marketed by the VPP buyer – or a specified percentage of the monthly production achieved at the given property.
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Voluntary Accumulation Plan
- An investment method in which a retail investor periodically invests (at its discretion) relatively small amounts of funds into a mutual fund, building a large position over an extended period.
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Voluntary Compliance
- An assumption or principle that taxpayers will comply with tax laws and, more importantly, accurately report their income and deductions honestly.
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Voluntary Employees Beneficiary Association Plan - VEBA
- A tax-free post-retirement medical expense account used by retirees and their eligible dependents to pay for any eligible medical expenses. The plan is funded by the amount of unused sick leave that an employee has at the time of retirement, which is contributed by the employer into the plan. The benefit of this plan is the amount of sick leave left at retirement is paid out in full to the plan and is not subject to tax, which would reduce the amount one would receive.
- A tax-free post-retirement medical expense account used by retirees and their eligible dependents to pay for any eligible medical expenses. The plan is funded by the amount of unused sick leave that an employee has at the time of retirement, which is contributed by the employer into the plan. The benefit of this plan is the amount of sick leave left at retirement is paid out in full to the plan and is not subject to tax, which would reduce the amount one would receive.
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Voluntary Export Restraint - VER
- A trade restriction on the quantity of a good that an exporting country is allowed to export to another country. This limit is self-imposed by the exporting country. Typically, VERs are a result of requests made by the importing country to provide a measure of protection for its domestic businesses that produce substitute goods. VERs are often created because the exporting countries would prefer to impose their own restrictions than risk sustaining worse terms from tariffs and/or quotas.
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Voluntary Simplicity
- A lifestyle that minimizes consumption and the pursuit of wealth and material goods. Individuals choose voluntary simplicity in order to attain a simpler but more meaningful life. Voluntary simplicity is quite different from those who are forced to spend less and live a more simple life involuntarily, such as those who lose their job and cannot find work.
Also known as "simple living."
- A lifestyle that minimizes consumption and the pursuit of wealth and material goods. Individuals choose voluntary simplicity in order to attain a simpler but more meaningful life. Voluntary simplicity is quite different from those who are forced to spend less and live a more simple life involuntarily, such as those who lose their job and cannot find work.
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Volunteer Income Tax Assistance - VITA
- An IRS program that utilizes volunteers to help provide free tax preparation services to low-income taxpayers. These services are provided at a variety of public locations such as libraries, schools and shopping malls, in certain high-need areas. Additionally, many locations offer free electronic filing services to qualifying taxpayers.
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Voodoo Accounting
- Any form of accounting that does not follow principles of conservatism. While there are many methods by which financial statements can be fudged, it always comes down to inflating revenue or hiding expenses. Examples of accounting shenanigans include the big bath, cookie jar accounting and improper recognition of revenue.
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Voodoo Economics
- A slanderous term used by George H. W. Bush in reference to President Ronald Reagan's economic policies, which came to be known as "Reaganomics".
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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.
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Voting Right
- The right of a stockholder to vote on matters of corporate policy and who will make up the board of directors. Voting often involves decisions on issuing securities, initiating corporate actions and making substantial changes in the corporation's operations.
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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.
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Voting Trust
- A legal trust created to combine the voting power of shareholders. With the establishment of the voting trust, the shareholders' legal title (their stock) and voting rights are transferred to a designated trustee for a set duration.
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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.
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Voucher
A document recording a liability or allowing for the payment of a liability, or debt. A voucher would be held by the person or company who will receive payment.
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Vulture Capitalist
- 1. A slang word for a venture capitalist who deprives an inventor of control over their own innovations and most of the money they should have made from the invention.
2. A venture capitalist who invests in floundering firms in the hopes that they will turn around.
- 1. A slang word for a venture capitalist who deprives an inventor of control over their own innovations and most of the money they should have made from the invention.
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Vulture Fund
- A fund that buys securities in distressed investments, such as high-yield bonds in or near default, or equities that are in or near bankruptcy.
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VUV (Vanuatu Vatu)
- The currency abbreviation for the Vanuatu vatu (VUV), the currency for Vanuatu. The Vanuatu vatu has no subunit, and is often presented with the symbol Vt. Vanuatan residents refer to a notional dollar that equals 100 vatu, which comes from the period of 1966 to 1973 when the New Hebrides franc (the currency at the time) was pegged to the Australian dollar (AUD) at a rate of 100 francs to 1 Australian dollar.
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