Value Trap
What is a 'Value Trap' When a company looks to be inexpensive because it has traded at low multiples of profits, cash flow, or book value for a long period of time, the stock is considered to be a value trap by investors. Stock traps are attractive to investors seeking for a good deal since the companies in question are...
Value Change
What is 'Value Change' An adjustment made to a stock's price to reflect the number of outstanding stock shares, or shares of stock that have been issued and are currently held by investors. A value change allows the group of stocks to be equally weighted and, therefore, more easily evaluated. Since the number of shares held by...
Value-Added Network (VAN)
What is 'Value-Added Network (VAN)' A private network provider hired by a company to facilitate electronic data interchange (EDI) and/or provide other network services such as message encryption, secure email and management reporting. A Value-Added Network (VAN) simplifies the communications process by reducing the number of parties with which a company needs to communicate. The VAN accomplishes...
Vanishing Premium Policy
What is 'Vanishing Premium Policy' A vanishing premium policy is a form of participating whole life insurance where the policyholder can use the dividends from the policy to pay the premium. Over time, the dividends will increase to the point that they cover the entire cost of the premiums. Explaining 'Vanishing Premium Policy' When...
Vanguard Exchange-Traded Funds
What is 'Vanguard Exchange-Traded Funds' A class of ETFs offered by Vanguard and traded like any other share on the American Stock Exchange. There are presently 27 Vanguard ETFs with underlying indexes covering both individual sectors (such as materials and energy)as well as domestic and international indexes. Previously known as VIPERS, the ETFs are designed to track...
Value Network
Three Ways to Define a Value Network A value network is a graphical representation of social and technical resources. Each node represents people, roles, and their interactions. Deliverables are the connections between nodes. As a result, the network is very flexible and can be used to better understand and map the flow of value across organizations. Here are three different...
Variable Survivorship Life Insurance
What is Variable Survivorship Life Insurance Variable survivorship life insurance is a type of permanent life insurance that pays a death benefit to the surviving policyholder after the death of the insured. The policyholder can use the death benefit to cover final expenses, debts, or other financial obligations. The policy also has a cash value component, which allows the policyholder...
Variance
What is 'Variance' Variance is a measurement of the spread between numbers in a data set. The variance measures how far each number in the set is from the mean. Variance is calculated by taking the differences between each number in the set and the mean, squaring the differences (to make them positive) and dividing the sum...
Vancouver Stock Exchange (VAN) .V
What is 'Vancouver Stock Exchange (VAN) .V' A defunct stock exchange formerly located in Vancouver, British Columbia. A large number of small cap and exploration companies' stocks were traded on this exchange. The Vancouver Stock Exchange finally merged into the Canadian Venture Exchange in 1999. Explaining 'Vancouver Stock Exchange (VAN) .V' At one point...
Value At Risk (VaR)
What is 'Value At Risk - VaR' Value at risk (VaR) is a statistical technique used to measure and quantify the level of financial risk within a firm or investment portfolio over a specific time frame. This metric is most commonly used by investment and commercial banks to determine the extent and occurrence ratio of potential losses...