Glossary (V – Z)


Volatility – The degree of price fluctuation for a given asset, rate, or index; usually expressed as a variance or standard deviation.

Volume – Total volume in each stock reported to The Nasdaq Stock Market from NASD members and exchanges trading Nasdaq securities between the hours of 8:00 A.M. and 5:15 P.M. EST.

Voting Trust – The deposit of shares with a trustee to gain long–term corporate control.


Warrant – A security that allows the owner to purchase the issuing corporation’s stock for a certain price over stated period. That period could be 10 or 20 years, and the price of the conversion is much higher than the current price of stock issue. A warrant is usually issued with another security, such as one warranty plus one bond, both of which form on unit.

WEBS (World Equity Benchmark Shares) – WEBS Index Shares represent a new approach to international investing, offering passive index management and facilitating targeted portfolio exposure. There’s a WEBS Index Series for each of 17 countries. Each WEBS Index Series seeks to track the performance of a specific MSCI Index. Many of these indices have been used by investment professionals for more than 25 years. WEBS are listed on the American Stock Exchange and trade like any other stock.

Weighted Average Maturity – The arithmetic mean of maturities of securities held by a mutual fund.

White Knight – A company that rescues another in financial difficulty, especially one which saves a company from an unwelcome takeover bid.

Work–Out Quote – Subject quote in which the trader estimates the price at which he thinks the security can be bought or sold if given time to find a market.

Writer – Seller of an option contract to open.


Yellow Sheets – Wholesale quote sheet for corporate bonds used by dealers.

Yield – In general, a return on an investor’s capital investment. For bonds, the coupon rate of interest divided by the purchase price, called current yield. Also, the rate of return on a bond, taking into account the total of annual interest payments, the purchase price, the redemption value, and the amount of time remaining until maturity.

Yield Curve – A graph linking the term structure of interest rates and showing the general pattern of yields to maturity on Treasury obligations.

Yield Elbow – The point on the yield curve that indicates the year at which the economy’s highest interest rates occur.

Yield to Call – The percentage a bond will yield to the date at which it is eligible to be redeemed by its issuer.

Yield to Maturity – The total percentage yield a bond will produce if held for its full term of maturity.


Zero Coupon CD – A certificate of deposit that pays interest only upon maturity.

Zero–Minus Tick – A stock trade at a price equal to the preceding trade but lower than the last different price.

Zero–Plus Tick – Term given to a sale made at the same price as the trade that preceded it providing that the previous trade was above the price of the sale it preceded.

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