Wage Push Inflation
What is 'Wage Push Inflation' Wage push inflation is a general increase in the cost of goods that is preceded by and results from an increase in wages. To maintain corporate profits after an increase in wages, employers must increase the prices they charge for the goods and services they provide. The overall increased cost of goods...
Waiver Of Demand
What is 'Waiver Of Demand' An agreement by the party that has endorsed a check or draft to accept legal responsibility, without being formally notified, should the original issuer of the check or draft default. The waiver of demand may be express or implied; it may also be oral or written unless oral waivers are specifically prohibited...
Watered Stock
DefinitionWatered stock is an asset with an artificially-inflated value. The term is most commonly used to refer to a form of securities fraud common under older corporate laws that placed a heavy emphasis upon the par value of stock. Watered Stock What is 'Watered Stock' Stock that is issued with a value much greater than the value...
Wave
What is 'Wave' A pattern of behavior marked by noticeable increases and decreases. Waves can be identified in stock price movements and in consumer behavior. Investors trying to profit from a market trend could be described as "riding a wave". A large, strong movement by homeowners to replace their existing mortgages with new ones...
Warrant Premium
What is 'Warrant Premium' The amount that an investor must pay above the current market price for a security, when purchasing and exercising a warrant. The warrant premium represents the cost of purchasing a share through the warrant, compared to buying the share directly through the open market. It is calculated as: ...
Water Rights
DefinitionWater right in water law refers to the right of a user to use water from a water source, e.g., a river, stream, pond or source of groundwater. In areas with plentiful water and few users, such systems are generally not complicated or contentious. In other areas, especially arid areas where irrigation is practiced, such systems are often the...
Warehouse-To-Warehouse Clause
Warehouse-To-Warehouse Clause What is 'Warehouse-To-Warehouse Clause ' A clause in an insurance policy that provides for coverage of cargo in transit. A warehouse-to-warehouse clause usually covers cargo from the moment it leaves the origin-warehouse until the moment it arrives at the destination-warehouse. Separate coverage is necessary to insure the cargo while it is being stored in...
War Risk
What is 'War Risk' 1. The possibility that an investment will lose value because of a major, violent political upheaval. War generates uncertainty in the financial markets and causes many investors to panic and sell, which leads to a decline in prices. 2. The possibility that an individual or company will experience a major...
Wash-Sale Rule
DefinitionA wash sale is a sale of a security at a loss and repurchase of the same or substantially identical security shortly before or after. Wash sale regulations protect against an investor who holds an unrealized loss and wishes to make it claimable as a tax deduction within the current tax year. The security is then repurchased in the...
Waterfall Concept
What is 'Waterfall Concept' A life insurance plan that provides a tax benefit in regards to intergenerational transfers of wealth. The concept occurs when a tax-exempt insurance policy is rolled over to a child or a grandchild. The origin of this term is derived from the fact that this insurance plan is similar to waterfalls in that...