Terms starting with V
12 terms
Value at Risk
Risk & Portfolio Management
₹
The loss a portfolio is not expected to exceed over a stated period at a stated confidence level.
Parametric VaR = Portfolio Value x Z-score for the confidence level x Standard Deviation of Returns over the period
Value Stock
Market Basics & Instruments
qualitative
A share trading at a low price relative to accounting measures such as earnings, book value or cash flow.
Test: low P/E, low P/B or high earnings yield relative to the market and to the company's own history
Value Trap
Fundamental Analysis & Valuation
qualitative
A share that looks cheap on backward-looking multiples but is cheap because its business is deteriorating.
Test: the low multiple is explained by declining earnings power rather than by temporary pessimism, so the multiple stays low as earnings fall
Variance
Risk & Portfolio Management
%
The average of the squared deviations of returns from their mean.
Variance = Sum of (Return - Mean Return) squared / Number of Observations
Vega
Derivatives, Futures & Options
₹
The change in an option's price for a one-percentage-point change in implied volatility.
Vega = Change in Option Price / Change in Implied Volatility (per 1 percentage point)
Volatility
Risk & Portfolio Management
%
The degree to which an asset's returns vary around their average, usually measured as annualised standard deviation.
Annualised Volatility = Standard Deviation of Daily Returns x square root of 252
Volume
Market Basics & Instruments
shares
The number of shares traded in a security over a stated period, counting each trade once.
Volume = total number of shares changing hands in the period
Volume Oscillator
Indicators & Oscillators
%
The percentage difference between a short and a long moving average of volume.
Volume Oscillator = (Short-Period Volume MA - Long-Period Volume MA) / Long-Period Volume MA x 100
Volume Profile
Indicators & Oscillators
shares
A histogram showing how much volume traded at each price level over a chosen period, plotted horizontally.
For each price level, sum the volume of all trades executed at that level over the period examined
Volume-Weighted Average Price
Orders, Execution & Market Structure
₹
The average traded price over a period, weighted by the volume executed at each price.
VWAP = Sum of (Price x Volume) / Sum of Volume
Voluntary Delisting
Corporate Actions, Dividends & Governance
qualitative
A company's own decision to remove its shares from the exchange, requiring a public shareholder exit offer.
Test: the acquirer reaches the threshold shareholding through a reverse book-building or fixed-price exit offer approved by public shareholders
Voting Rights
Corporate Actions, Dividends & Governance
shares
The entitlement of an equity shareholder to vote on resolutions, normally one vote per share held.
Votes Held = Number of Equity Shares Held, unless the class carries differential rights