Banking & Finance Vocabulary
V
30 terms
VWAP, or Volume Weighted Average Price, is a trading indicator that provides the average price at which a security has traded throughout the day, weighted by th
A validation code, often known as a Card Verification Value (CVV), Card Verification Code (CVC), or Card Security Code (CSC), is a three or four-digit security
Value is the monetary worth or assessed worth of an asset, security, business, or service, reflecting what it is fundamentally worth rather than what the market
A value chain is the set of all activities a business performs to design, produce, deliver, and support a product or service from raw material to end customer.
Value Engineering (VE) is a systematic approach aimed at enhancing the value of a project by optimizing its functions while minimizing costs. This method focuse
A Value Fund is an equity mutual fund scheme that primarily invests in stocks perceived to be trading below their intrinsic value, based on fundamental analysis
A value proposition is a clear, compelling statement that explains what unique benefits a product, service, or brand delivers to customers and why they should c
Value-Added Monthly Index (VAMI) is a financial metric that tracks the hypothetical monthly growth of an investment based on an initial investment amount, typic
Value-Added Tax (VAT) is a consumption tax levied on goods and services at each stage of the supply chain, based on the value added at that particular stage. It
Variable cost refers to the costs that fluctuate in direct proportion to the level of production or business activity. As production increases or decreases, var
The Variance Inflation Factor (VIF) is a statistical metric used in multiple regression analysis to detect and quantify the severity of multicollinearity, which
VeChain is a blockchain platform designed to enhance supply chain management and improve business processes through distributed ledger technology (DLT). It aims
A vendor is an individual or entity that sells goods or services to another party, which can be a business, a government agency, or an end-consumer. They form a
A Venn diagram is a visual tool that uses overlapping circles to show relationships, similarities, and differences between two or more groups or concepts. Where
A Venture Capital Fund is a type of investment vehicle that provides financing to early-stage companies and startups with high growth potential. These funds foc
Vertical integration is a business strategy where a company gains ownership and control over different stages of its production or supply chain, which were prev
A vertical merger is a combination of two companies operating in the same industry but at different stages of the supply chain—such as a manufacturer merging wi
A vested interest refers to a person's legal right or stake in a certain asset, project, or outcome, allowing them to benefit from it in the future. This can in
Video conferencing is a communication technology that allows individuals in different locations to conduct real-time, visual, and audio interactions as if they
Vintage refers to the year or cohort in which a mortgage-backed security (MBS) or loan pool was created or issued, used by investors and traders to assess the a
A virtual office is a modern workspace solution that provides businesses with a physical mailing address and essential office services without the need for a lo
Virtual Reality (VR) is a computer-generated simulation of a three-dimensional environment that users can interact with in a seemingly real or physical way, typ
A Visa Card is a payment card issued by banks and financial institutions that uses the Visa network to process transactions at millions of merchants worldwide.
Visibility in a financial context refers to the ability to predict a company’s future performance in terms of earnings or revenue. It plays a crucial role in in
A void transaction refers to a payment card transaction that a merchant cancels before it is fully processed and settled through the customer's account. This ca
Volatility measures the degree and speed at which the price of a security fluctuates above or below its average value over a given period. It quantifies investm
Voluntary conveyance refers to the intentional transfer of property title from one individual or entity to another without the exchange of adequate consideratio
A Vostro Account is an account maintained by a domestic bank on behalf of a foreign bank in the domestic currency. This arrangement allows the foreign bank (the
A voucher is a written record or document that proves a financial transaction has occurred and supports the accuracy of accounting entries. It serves as tangibl
Venture capital is risk capital invested by professional investors in early-stage, high-growth potential companies in exchange for equity ownership. Unlike bank