Weak Form Efficiency
What is Weak Form Efficiency In finance, weak form efficiency is the idea that prices reflect all information that is publicly available. In other words, it is not possible to beat the market by analyzing past price data because all of the relevant information is already reflected in current prices. The weak form efficiency hypothesis was first proposed by Eugene...
Wage Expense
What is 'Wage Expense' In financial accounting, wage expense represents payments made to non-manufacturing employees, regardless of whether they are hourly or salaried. Depending on the presentation, this line item may also include payroll tax expenses and other benefits paid to employees. Wage expense is recorded as a line item in the expense portion of the income statement. Explaining 'Wage Expense' Under...
Warrant Coverage
What is 'Warrant Coverage' Warrants are issued to shareholders in exchange for a percentage of the dollar amount of the shareholder's investment, according to an agreement between a corporation and its shareholders. Explaining 'Warrant Coverage' Example: If an investor purchases 1,000,000 shares of stock at $5 per share (a $5,000,000 investment), and the company grants 20 percent warrant coverage, the company issues...
War Exclusion Clause
What is 'War Exclusion Clause' A clause in an insurance policy that specifically excludes coverage for acts of war such as invasion, insurrection, revolution, military coup and terrorism. A war exclusion clause in an insurance contract refers to protection for an insurer who will not be obligated to pay for losses caused by war-related events. Insurance companies...
Water Damage Clause
What is 'Water Damage Clause' A clause in a property-casualty insurance contract. A water damage clause states that the insured is covered for water damage that occurs for specific reasons, such as frozen pipes or sewer backup. Water damage clauses are therefore usually included in most homeowners and renters' policies. Explaining 'Water Damage Clause' ...
Wall Street
What is 'Wall Street' Wall Street is a street in lower Manhattan that is the original home of the New York Stock Exchange and the historic headquarters of the largest U.S. brokerages and investment banks. The term Wall Street is also used as a collective name for the financial and investment community, which includes stock exchanges and...
Waiver Of Exemption
What is 'Waiver Of Exemption' A provision in a consumer credit contract or loan agreement that permitted creditors to seize or threaten to seize specific possessions or property (typically those considered necessities) even if state law treated them as exempt from seizure. A debtor who signed a waiver of exemption made such exempt property available to a...
Watch List
What is the 'Watchlist' 1. A list of securities being monitored closely by a brokerage or exchange in order to spot irregularities. Firms on the watchlist might be suspected of regulatory violations, about to issue new securities, attracting usually heavy volume, etc. 2. A list of securities being monitored for potential trading or investing opportunities. An investor...
Wash-Out Round
What is 'Wash-Out Round' A common round of financing to owners of small companies that are not yet financially stable. When such financing is done, the new issuance serves to dilute drastically the ownership of previous investors and owners. Often, the new investors are able to take control of the company because the previous owners are in...
War Risk Insurance
DefinitionWar risk insurance is a type of insurance which covers damage due to acts of war, including invasion, insurrection, rebellion and hijacking. Some policies also cover damage due to weapons of mass destruction. It is most commonly used in the shipping and aviation industries. War risk insurance generally has two components: War Risk Liability, which covers people and items...