Value Chain
What is a 'Value Chain' A value chain is a high-level model developed by Michael Porter used to describe the process by which businesses receive raw materials, add value to the raw materials through various processes to create a finished product, and then sell that end product to customers. Companies conduct value-chain analysis by looking at every...
Variable Rate Mortgage
DefinitionA variable-rate mortgage, adjustable-rate mortgage, or tracker mortgage is a mortgage loan with the interest rate on the note periodically adjusted based on an index which reflects the cost to the lender of borrowing on the credit markets. The loan may be offered at the lender's standard variable rate/base rate. There may be a direct and legally defined link...
Vasicek Interest Rate Model
What is '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...
Variable Death Benefit
What is 'Variable Death Benefit' The amount paid to a decedent's beneficiary that is dependent on the performance of an investment account within a variable universal life insurance policy. The policyholder can choose among several investment options offered by the insurer, ranging from guaranteed interest to mutual funds to stocks and bonds. The variable amount (the policy's...
Variable Universal Life Insurance (VUL)
What is 'Variable Universal Life Insurance - VUL' Variable universal life insurance (VUL) is 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...
Variable Ratio Write
What is '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...
Value Fund
What is a 'Value Fund' A value fund is 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....
VantageScore
DefinitionVantageScore is a consumer credit-scoring model, created through a joint venture of the three major credit bureaus. The model is managed and maintained by an independent company, VantageScore Solutions, LLC, that was formed in 2006 and is jointly owned by the three bureaus. VantageScore What is 'VantageScore' A consumer credit rating product developed by three credit rating...
Vandalism Endorsement
What is 'Vandalism Endorsement' An optional type of coverage that can be added to a basic hazard or property and casualty insurance policy to provide remuneration to the policy holder if his or her property is intentionally damaged by criminals. Vandalism endorsement is designed to protect the property owner and/or tenant against perils such as graffiti and...
Variable Cost-Plus Pricing
What is 'Variable Cost-Plus Pricing' Variable cost-plus pricing is a pricing method in which the selling price is established by adding a markup to total variable costs. The expectation is that the markup will contribute to meeting all or a part of fixed costs, and generate some level of profit. Variable cost-plus pricing is especially useful in...