A cost that changes in proportion to a change in a company's activity or business. Taobiz explains Variable Cost A good example of variable cost is the fuel for an airline. This cost changes with the number of flights and how long the trips are.
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 their underlying indexes as closely as possible and offer the increased flexibility of intraday trading. Taobiz explains Vanguard Exchange-Traded Funds Vanguard looks to bring its leadership in the passive management market to the ETF space with this class of low-cost funds. Most of the underlying indexes are Morgan Stanley (MSCI) indexes, which cover not only equity sectors of the economy, but also small-, mid- and large-cap equity indexes. There are also ETFs for broad-based market indexes such as the Wilshire Composite (a unit of Dow Jones), which tracks more than 3,500 stocks.
A stock that has experienced a large price depreciation and is mistaken to be a value stock. Taobiz explains Value Trap When a company's stock seems undervalued, investors are sometimes drawn into purchasing it in hopes of a stock price appreciation. If stock price is the only factor an investor looks at before buying a stock, he or she could end up with a stock whose value is likely to decline even further.
A trading benchmark used especially in pension plans. VWAP is calculated by adding up the dollars traded for every transaction (price multiplied by number of shares traded) and then dividing by the total shares traded for the day. Taobiz explains Volume Weighted Average Price - VWAP The theory is that if the price of a buy trade is lower than the VWAP, it is a good trade. The opposite is true if the price is higher than the VWAP.
A stock index that tracks the 30 largest companies with the most heavily-traded stocks on the Nordic stock exchanges. VINX 30 is denominated in euros and is an adjustable free-floating index. It tracks stocks that trade on the exchanges in Helsinki, Copenhagen and Stockholm. Taobiz explains VINX 30 The VINX 30 acts as a benchmark for investors who wish to track their Nordic investments against a similar index. There is also an ETF called the XACT Nordic 30 that owns the 30 stocks in this index. Investors who want to follow the returns of the index can do so by investing in this fund.
A mutual fund that invests in gaming, such as casino operators and gaming equipment, alcohol, tobacco and aerospace/defense sectors. The fund invests in both domestic and foreign-based equities, and holdings range from small cap to mega cap companies. The fund has been in operation since 2002 and focuses on so-called "vices" that are considered by many to be socially irresponsible investments, or "sin stocks". Taobiz explains Vice Fund The Vice Fund has little direct competition based on sector allocations, but as of 2007, it had outperformed the Russell 1000 Index (its benchmark index) since its inception. The fund is considered non-diversified, and carries a relatively high expense ratio of greater than 1.5% annually. The Vice Fund stands in stark contrast to the many socially conscious or responsible mutual funds on the market, but it is based on the philosophy that sectors like gaming and alcohol have inherently solid demand; therefore, companies that are leaders in these sectors should produce good returns for shareholders.
The process by which employees accrue non-forfeitable rights over employer contributions that are made to the employee's qualified retirement plan account. Taobiz explains Vesting Generally, non-forfeitable rights accrue based on the number of years of service performed by the employee. The exact requirements are specified in the plan document, which also contains any applicable regulations. Employees are always 100% vested in salary-deferral contributions as well as SEP and SIMPLE employer contributions.
A type of two-way satellite that transmits both narrow and broadband data to satellites in orbit. The data is then redirected to other remote terminals or hubs around the planet. VSATs are mainly used for wireless transmission of real-time data. Taobiz explains Very Small Aperture Terminal - VSAT The National Stock Exchange (NSE) in India is one of the largest VSAT based exchanges in the world. Supporting more than 3,000 terminals, the NSE network is the largest private wide-area network in the country. The NSE uses real-time online application, which is supported by 15 computer systems, including nonstop, fault-tolerant computers and high-end UNIX servers. Other VSAT networks include the U.S. Postal Service and Wal-Mart.