|
Waiting Period - The time period when the SEC examines a
company’s registration statement.
Wall Street - Common term used to describe the New York City financial
district where the NYSE and AMEX are located
Wallflower - A term used to describe a stock that has fallen out of
favor with investors.
Wanted for Cash - A ticker statement displaying that a buyer will pay
cash for a same day settlement on a specified amount of a security.
Warehouse - Term for a swaps market maker's procedure of operating a
book of unmatched swaps.
Warehouse Receipt - An instrument issued by a custodian in evidence of
deposit of a basket of securities. Ex. SPDRs.
Warrant - Similar to call options, warrants are a security that entitles
the owner to buy a commensurate amount of a stock at a specified price
in the future.
Warrant Dilution - Measure of “watered down” capitalization as a result
of the issuance of warrants.
Warrant-driven Swap - A swap with a warrant allowing a counterparty
affected by a bond warrant exercise to increase the size of the swap.
Wash - The purchase and sale of the same security whereby the gains
equal the losses.
Wash Sale - Occurs when identical stock is bought within 30 days before
or after a sale.
Wasting Asset - Owning an option position which will decrease in value
as time passes.
Watch List - A selection of companies chosen by a brokerage firm for
observation.
Wedding Band Swap - Swap with a low floating rate payment if an index
rate stays within a preset range over a predetermined interval.
Weekend Effect - Trend for the volatility of options to rise from Friday
to Monday.
Weighted Average Loan Age - The dollar-weighted average time period of
the mortgage loans in a mortgage pool.
Weighted Average Portfolio Yield - The weighted average of all bond
yields in a portfolio.
Weighted Average Rate Option - Option that is weighted by an agreed upon
daily, weekly, or monthly rate.
Weighted Collar - A collar with a disparity between the quantities
covered by the cap and the floor.
When Issued - Refers to a security offered for advanced sale though it
has not been issued. Stocks, bonds, stocks splits, and Treasury
securities are all traded on a when issued basis.
When-Issued Option - An option on the next Treasury bond or note to be
issued with a specific maturity.
White Knight - A acquirer whose interest in a takeover target is
embraced after a hostile takeover bid has been launched.
Wholesale - Transaction in which a broker-dealer buys an OTC stock from
another broker-dealer.
Wholesale Uninsured Financial Institution - A proposed regulatory
framework for a versatile financial intermediary that can engage in any
banking transaction except taking insured deposits.
Wild Card - Provisions in several futures contracts whereby the investor
who is short the contract can choose any of a number of securities in
settlement of the delivery obligation at any time and can deliver
anytime within a prescribed period.
Williams Act - Enacted in 1968, the Williams Act is federal legislation
that enforces requirements in regards to public tender offers.
Windfall - Sudden, unexpected profit caused by events not controlled or
initiated by the company.
Winding-up Risk - The risk of possible inability to close out a position
quickly or at reasonable cost.
Window Contract - An investment contract bought with deposits over a
future time period.
Window Dressing - Trading designed to enhance the look of a portfolio to
be presented to shareholders or the public. Usually occurs near the end
of a quarter or fiscal year. Wire House – Communications systems
Window Warrants - Warrants which can be exercised only during limited
time periods in the life of a host bond.
Windsor Declaration - An agreement by market regulators from 16 nations
in 1995 to improve international information sharing, protection of
customer assets, default procedures, and emergency cooperation among
regulators.
Wing Nuts - Deep out-of-the-money options.
Wire House - Communications systems operated by a firm linking it to
branch offices of the company for the purpose of relaying of financial
information and quotes.
With Dividend - Entitles the buyer to forthcoming dividends of the
purchased shares.
With Rights - Entitles the buyer to buy shares in company’s rights
issue.
Withholding Tax - The tax assessed on dividends paid abroad.
Withholding Tax Agreement - Treaty that eases nonresident dividend
withholding taxes for stockholders in representative countries.
Work-Out Market - A market in which any quote a dealer may furnish is
dependent on his ability to find the other side of the trade.
Working - The attempt to complete a trade by finding buyers or sellers.
Working Away - A transaction between two broker dealers.
Working Capital - The funds held in a company's cash, accounts
receivable, inventory and other current assets. Can be defined as the
difference between current assets and current liabilities.
Working Capital Ratio - The working capital of a company put in terms as
a percentage of sales.
Working Order - An order where a broker offering to fill an order in a
series of lots in hopes of obtaining the best price.
Wrap Account - An account where a client pays a brokerage firm a flat
annual fee to cover the cost of money management services and trading
commissions.
Write - To sell an option.
Writer - The seller of put and call option contracts that carries the
obligated to buy or sell the underlying security if the option is
exercised. |
