Vendor Note
What is '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...
Vanishing Premium
Vanishing Premium What is 'Vanishing Premium ' A type of periodic fee, paid in exchange for an insurance policy, that eventually disappears because the investment return earned by the cash value of the policy is sufficient to pay the fee. Vanishing premiums are a feature of some permanent life insurance policies. After the policyholder pays the...
Variable Interest Entity (VIE)
What is a 'Variable Interest Entity - VIE' According to the Financial Accounting Standards Board (FASB) in the United States, a variable interest entity (VIE) is an entity in which an investor has a controlling interest, but this controlling interest is not dependent on a majority of voting rights. VIEs are subject to consolidation if specific requirements are satisfied. Explaining 'Variable...
Value Network Analysis
What is 'Value Network Analysis' The analysis of the members and the interactions of these members within a value network. Value network analysis is usually done through visualizing the relationships using a chart or web. The participants are evaluated both individually and on the benefit they bring to the network. Value network analysis looks at the business...
Variance Inflation Factor
DefinitionIn statistics, the variance inflation factor is the ratio of variance in a model with multiple terms, divided by the variance of a model with one term alone. It quantifies the severity of multicollinearity in an ordinary least squares regression analysis. It provides an index that measures how much the variance of an estimated regression coefficient is increased because...
Valued Policy Law (VPL)
Valued Policy Law (VPL) What is 'Valued Policy Law - VPL' A statute that requires insurance companies to pay the full value of the insurance to an insured entity in the event of a total loss. The Valued Policy Law does not consider the actual value of the insured property at the time of the loss; instead,...
Vendor
DefinitionIn a supply chain, a vendor, or a seller, is an enterprise that contributes goods or services. Generally, a supply chain vendor manufactures inventory/stock items and sells them to the next link in the chain. Today, these terms refer to a supplier of any good or service. Vendor What is a 'Vendor' A vendor is a party...
Venn Diagram
DefinitionA Venn diagram is a diagram that shows all possible logical relations between a finite collection of different sets. These diagrams depict elements as points in the plane, and sets as regions inside closed curves. A Venn diagram consists of multiple overlapping closed curves, usually circles, each representing a set. The points inside a curve labelled S represent elements...
Valuation Premium
What is 'Valuation Premium' The rate set by a life insurance company based on the value of the company's policy reserves. The valuation premium is calculated by an insurance company. The company ensures that, first and foremost, it has adequate policy reserves to cover payouts. Once the value of the policy reserves is determined, the insurance company...
Variable Annuity
What is a Variable Annuity A variable annuity is a type of investment that offers the potential for tax-deferred growth and a death benefit. With a variable annuity, you can invest your money in a variety of different options, including stocks, bonds, and mutual funds. The value of your investment will then fluctuate based on the performance of the underlying...