A merger between two companies producing different goods or services for one specific finished product. Taobiz explains Vertical Merger By directly merging with suppliers, a company can decrease reliance and increase profitability. An example of a vertical merger is a car manufacturer purchasing a tire company.
The lending of money by a company to one of its customers so that the customer can buy products from it. By doing this, the company increases its sales even though it is basically buying its own products. Taobiz explains Vendor Financing This is a sneaky method a company can use to increase sales. It is also very risky, as the companies it lends money to are usually not very financially stable and may never pay back the money. If they don't pay back the debt, the lending company will just write-down the loss as a bad debt.
Shares that give the stockholder the right to vote on matters of corporate policy making as well as who will compose the members of the board of directors. Taobiz explains Voting Shares Different classes of shares, such as preferred stock, sometimes don't allow for voting rights.
The right of a stockholder to vote on matters of corporate policy and who will make up the board of directors. Voting often involves decisions on issuing securities, initiating corporate actions and making substantial changes in the corporation's operations. Taobiz explains Voting Right Shareholders do not necessarily need to be physically present at the site of the company's annual meeting in order to exercise their right to vote. It is common for shareholders to voice their vote by proxy by mailing in their response. Unlike the single vote right that individuals commonly possess in democratic governments, the number of votes that a shareholder has corresponds to the numbers of shares that he owns. For example, a shareholder that owns 100 shares will have a 100 times more sway than a shareholder that owns a single share.
The name given to stocks, bonds and other securities that have become worthless. Taobiz explains Wallpaper The securities may have lost all monetary value because of bankruptcy or for other reasons. This term implies that because the certificates are worthless, may as well wallpaper your house with them. Former dotcom companies that went bankrupt are good examples of wallpaper stocks.
A stock that has fallen out of favor with investors and, consequently, tends to trade at a low P/E. Also called orphan stock. Taobiz explains Wallflower In general terms, a wallflower is somebody who remains on the sidelines of a social activity. The financial sense of the word is very similar. This type of stock is often neglected by research analysts and, as a result, doesn't get much attention from investors. For this reason, many believe that wallflowers are undiscovered bargains.
Market capitalization weighted indicies designed by Wachovia to measure the performance of the U.S. preferred shares in addition to five other specialized indecies. The Wachovia Hybrid and Preferred Securities (WHPS) Aggregate Index consist of preferred securities representing in excess of $100 billion in total market value. The specialized indexes are sub-groups to the main index. Taobiz explains Wachovia Hybrid and Preferred Securities (WHPPSM) Indicies The aggregate index is composed of five specialized indexes including WHPS Non-REIT Index, WHPS REIT Index, WHPS investment-grade REIT Index, WHPS below-investment-grade REIT Index, and WHPS equity REIT Index.
A legal trust created to combine the voting power of shareholders. With the establishment of the voting trust, the shareholders' legal title (their stock) and voting rights are transferred to a designated trustee for a set duration. Taobiz explains Voting Trust There are many reasons stockholders may wish to form these trusts. For example, they may create one in the hopes of maintaining control within a corporation through a unified vote. Or they may want to use it as a form of protection from corporate creditors. The laws of different states usually have limitations on the duration of a trust, as it is a legally binding agreement.