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Value added Monthly Index - The Value added Monthly Index is a value, generated by a hypothetical investment into a company with a worth of a thousand dollars. This value could be higher or lower, depending on the performance of the company. If the company is doing well, the index will get higher. Every month the value is calculated. The value is also based on the value of previous months. Shortly said, the value of the current month is the same as the value of previous months, multiplied with a percentage of the total amount that is invested in the... Definition: Value funds are mutual funds that invest in stocks that are trading at prices believed to be lower than what the stock is actually worth.StockJargon Advice: Value funds differ from growth funds because they don't invest in companies growing quickly. Rather, they seek out stocks that may just be out of favor.At times of high economic growth, value stocks lose their appeal to investors. This was evident in the late 1990's when investors were putting their money into Internet stocks.
... Definition: A stock that is "undervalued" according to a typical value investor. This is determined by using a number of valuation techniques.
TeenAnalyst Advice: Value investors believe the market is inefficient, meaning that stocks aren't trading at what their true price should be. So there's hidden value in some stocks.Some popular ways to find value stocks involve using the price/book ratio, dividend discounting, etc.
... Value Trap - One can speak about a value trap, when the price of the stock is dropping, without causing the stock being under-valued. It may look like a value stock due to this drop in price. The reason for such a drop in the stock price can be various, due to circumstances (like an economical crisis for example), but also other circumstances may cause such a drop. Investors are advised to study the company and its finances, not only the price of stock but as well other important information in order to prevent a purchase of a value trap.
... Variable Committed Expense - Variable committed expenses can happen from time to time, more than the usual or standard costs, even recurring occasionally. They can be temporary and/or periodic, for a short term, ever-so-often, higher, lower, fluctuating, but ever-present. Allowances for this flexibility and incidence is important in budgeting to off-set these occurrences. Necessary expense, higher and lower at times, can not be avoided, but their impacts minimized effectively. Anticipation, cutting cost, avoiding waste are countermeasures to off-set these impacts. Downtime, maintenance are part of the budgeted costs of running/operating a business, projected cost in budgets. Parts and labor for... Variable Cost - Variable or varying costs, expenses, expenditure changes and fluctuations are affected by many things. Debt obligations and changes due to changing costs are harder to plan and budget for. Unexpected expenses can also add up to quickly negatively impact business and bottom line. Utilities, electricity bills illustrate these principles, challenges and realities, very well. Resource planning, maintenance, operational costs can occur due to downtime, overtime, increased volume, or energy consumption, impacting all aspects of the business including the bottom line! Labour increases are typical culprits in this category, as are consumption increases, emergencies, or strike actions. Building... Variable Price Limit - Sometimes a situation asks for securities to be traded above or below a certain price limit. Commodities and options are two examples of securities; they usually have a price limit that is regular. The price range is usually to be found between the lowest and the highest price permitted for these commodities. When securities are traded above or below that limit, we speak of a variable price limit. The variable price limit is often used when trading popular commodities. Even foreign currency can be traded from time to time with a variable price limit, often followed... Definition: Money invested in startup companies with a lot of growth potential. Venture capitalists are people who fund these new companies.
TeenAnalyst Advice: New startups are quite risky but venture capitalists invest in them because they get large shares of stock for really cheap. If the company succeeds and goes public, a venture capitalist can make... Venture Capital Firm
- A Venture Capital Firm is an investment company that invests the
money of their shareholders in busineses with a certain risk. Dare-investors
- they dare to invest money, often to get the company on their feet,
or reorganize the company completely, so that they can bring a higher
profit, than what they have paid for the investment in the first place.
Sometimes companies are split up and sold, in order to bring more
profit to the venture capital firm. Their goal is to make profit by
investing in risky but profitable ventures and get as... Venture Capital Fund Whenever a mutual fund gets
capital from a third party like a bank or an extremely wealthy individual
investor, it is called a venture capital fund. In many cases, this will
occur when these corporations invest in projects that smaller businesses
are trying to accomplish in order to provide then with the short term
money that they need. This does, however, create a higher risk for these
lenders, as businesses can have trouble securing additional financing
and are often unwilling or unable to pay the interest that they owe
to their lenders if the project does not... Definition: Vertical analysis puts the balance sheet and income statement into percentage terms. This allows you to compare, for example, what percent of sales is spent on marketing. Example: Sales 100% COGS ... Vetoing Stock - A Vetoing Stock allows the holder of this stock to vote for or vote against (veto) corporate matters, usually brought to them in a shareholder's meeting. The holders of a Vetoing Stock however don't have a say in electing the board of directors of a company. Usually very important decisions for a company are discussed with the share holders with voting rights in order to decide how to proceed in a certain matter.... Viral Marketing - Going viral is the new measure of success, spreading fast like a viral infection. It was sparked by ads in and through email, offering low-cost advertising that is effective, new channels, means and way to reach consumers, not there before, optimizing and leveraging relationships and contact information in a unique way. Implied endorsement can be very powerful and are faster than third-party traditional advertising campaigns. Viral marketing is a marketing strategy that relies on individuals rather than traditional campaigns to pass along a message, word of mouth, spread the word, so to speak, to others. It is... Definition: Volatility refers to how easily a stock tends to rise and fall. A volatile stock would be one that sees very large swings in its stock price.
TeenAnalyst Advice: Some industries are traditionally more volatile than others. For example, technology stocks are considered to be extremely volatile. ... Definition: The number of shares of a particular stock that is traded in a given period of time. "Daily volume" would be the number of shares traded in one day.
TeenAnalyst Advice: A company's volume is a tell-tale sign of what's going on. If a company has a day where its volume is considerably higher than... Volume Discount - A so-called, aptly named volume discount, is a method used by sellers and manufacturers to reward those who are able to purchase in bulk amounts or in mass quantities. Typically it might mean a lower price, for it is not about just buying/selling, but also about ridding the company of excess inventory. Warehouses make if possible to pass on these saving, markdowns and discounts on to consumers. Loyalty and incentive builders, promise future deals and lower purchasing prices, potentially in the future, so many companies see these are worthwhile investments and pursuits. There are different types of... Voluntary Accumulation
Plan This is a plan that creates
a situation where any shareholder in a mutual fund is able to make regular
investments in the fund in order to add to the number of shares that
he or she already has. This is perfect for individuals who want to increase
the amount of money that they have invested, but do not have the money
to do it all at once. This plan allows for investors to put more money
into the mutual fund when they have some extra money, which helps the
fund grow and will provide additional income...
Voting Right - Common share holders (not with a Vetoing Stock) do have the right to vote in person, or by written authorisation for members of the board of directors. They also have the right to vote in corporate policy matters. They also can vote in matters of senior security or stock splits. Also their voting right can be used to achieve or stop substantial changes in a company, or in operations in the areas in which the company is active. Usually the voting right is used in a shareholders meeting. Usually... Voting Stock - A Voting Stock is a stock that comes with voting rights to the holder of this stock. With this voting right, a shareholder can have influence on important matters that involves the company. He or she can also vote for members of the board, and other very important issues. The opposite of Voting Stock is Non-Voting Stock. People who are holders of a nonvoting stock are not allowed to vote on important matters involving the company of which they are share holders. They do not have voting rights, so... Voting Trust - A voting trust is an agreement between shareholders with voting rights and a group of individuals they trust. They share or trade voting stock for a specific time period to these trustees. This group of trustees usually is small, and these trustees would have to vote in a way they see fit; seeking the best for the company. After the limited time on which the trustees and the shareholders have agreed upon, they usually transfer back the voting trust to the original stockholder, unless there is decided otherwise... |
Set Concrete Goals
Rights Issue