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Waiver of Coinsurance Clause A waiver of coinsurance clause is a provision in an insurance policy that removes the insured’s obligation to pay a portion of a covered loss (coinsurance) under specified conditions. It most commonly appears in property insurance but can also apply to health plans and, occasionally, other insurance types. Key takeaways The…

Waiver of Demand What it is A waiver of demand is an agreement by an endorser of a check or bank draft to accept legal responsibility for payment if the original issuer (drawer) defaults. It shifts liability from the drawer to the endorser and can include responsibility for any fines, fees, or penalties resulting from…

Waiver A waiver is a voluntary, legally binding relinquishment of a right, claim, or privilege by one party, typically in the context of a contract or settlement. By signing or clearly acting in a way that indicates waiver, a party gives up the ability to later enforce the waived right. Key takeaways A waiver removes…

Waiting Period: Definition, Types, and Examples What is a waiting period? A waiting period (also called an elimination period or qualifying period) is the time an insured person must wait before some or all insurance coverage becomes effective. Claims filed during the waiting period may be denied or unpaid. Explore More Resources › Read more…

Wage Push Inflation Key takeaways * Wage push inflation occurs when rising wages lead firms to raise prices to cover higher labor costs. * It can trigger a feedback loop (wage‑price spiral) if higher prices prompt further wage demands. * Common triggers include minimum‑wage hikes, labor shortages, and industry competition for talent. * Policymakers and…

Wage-Price Spiral Key takeaways * The wage-price spiral describes a self-reinforcing loop: higher wages boost demand, which pushes up prices, prompting further wage demands. * Central banks typically counteract the spiral with tighter monetary policy (higher interest rates, reserve requirements, open-market operations) and by targeting inflation. * Breaking the spiral can require trade-offs — tighter…

Wage Expense Wage expense is the cost a business incurs to pay hourly employees. It appears on the income statement and often includes related payroll taxes and employee benefits. Because wages are tied to hours worked, they are generally treated as variable costs that fluctuate with labor demand and seasonality. Key takeaways Wage expense is…

Wage Earner’s Plan (Chapter 13 Bankruptcy) A wage earner’s plan, commonly called Chapter 13 bankruptcy, lets individuals with a regular income reorganize and repay debts over time while protecting assets from foreclosure. Rather than liquidating assets or seeking broad debt forgiveness, the debtor proposes a court-approved repayment plan with fixed monthly payments made to a…

Wage Assignment A wage assignment is an agreement that directs an employer to withhold a portion of an employee’s paycheck and send it directly to a creditor to repay a debt. It can be voluntary (initiated by the employee or written into a loan contract) or arise from specific agreements such as child support arrangements….

W-Shaped Recovery Definition A W-shaped recovery—also called a double-dip recession—is an economic cycle where indicators (GDP, employment, industrial production, etc.) fall sharply, recover briefly, fall again, and then finally rise. When plotted, the pattern resembles the letter “W”: recession → recovery → renewed recession → sustained recovery. How it works The first decline is typically…

What is Form W-9? Form W-9 (Request for Taxpayer Identification Number and Certification) is an IRS form used to collect a person’s name, address, and taxpayer identification number (TIN) so a payer can correctly report payments to the IRS. The TIN is usually a Social Security Number (SSN) for individuals or an Employer Identification Number…

W-8 Forms: What They Are and Which One You Need Overview W-8 forms are IRS certificates used by non-U.S. persons and foreign entities to establish foreign status for U.S. tax withholding. These forms are provided to payers or withholding agents (not filed with the IRS) to claim reduced withholding or exemption under U.S. tax law…

W-4 Form Form W-4 (Employee’s Withholding Allowance Certificate) is used by employees to tell their employer how much federal income tax to withhold from each paycheck. Withholding depends on factors such as marital status, number of allowances/dependents, and other credits or adjustments. Key takeaways Completing a W-4 determines how much federal tax your employer withholds…

Form W-2: Wage and Tax Statement What is Form W-2? Form W-2 (Wage and Tax Statement) is the annual tax document employers must provide to each employee and file with the Social Security Administration (SSA). It reports an employee’s wages for the prior tax year and the amounts withheld for federal income tax, Social Security,…

Cboe Nasdaq Volatility Index (VXN): What It Means and How It Works Key takeaways The VXN measures the market’s expectation of 30‑day volatility for the Nasdaq‑100 index, derived from option prices. It was introduced in 2001 to reflect the tech‑heavy Nasdaq’s volatility profile, which can diverge significantly from the broader market’s VIX. Like the VIX,…

VWAP Cross Definition A VWAP cross occurs when a security’s price crosses its volume-weighted average price (VWAP). VWAP represents the average price of a security over a trading session, weighted by traded volume. Traders use VWAP crosses to identify potential intraday buy or sell signals and to assess whether price action is supported by volume….

Vulture Fund What is a vulture fund? A vulture fund is an investment fund that buys securities of severely distressed issuers—such as high-yield bonds in or near default, loans, or equity in companies facing bankruptcy—at deep discounts. Managers aim to profit by holding, restructuring, litigating, or otherwise extracting value from assets that the broader market…

Vulture Capitalist: Definition and Overview A vulture capitalist is an investor who buys stakes in financially distressed or failing companies at very low prices, then takes aggressive actions to extract value and generate profit. These investors typically enter when market sentiment is poor and creditors are unwilling to lend, giving them leverage to negotiate favorable…

Voyage Policy: What it Means and How It Works A voyage policy (also called marine cargo insurance) is a trip-specific insurance contract that protects a shipper’s cargo against covered losses during a single voyage. Unlike time-based marine policies, a voyage policy begins when the ship sails and ends when it arrives at its destination. Key…

Voucher Check: Definition, Examples and Benefits What is a voucher check? A voucher check combines a standard check with one or more detachable vouchers (remittance advice) that document the payment details. The vouchers provide an auditable paper trail showing who was paid, why, and for what amount, and they serve as supporting documentation for accounting…

Voucher What a voucher is A voucher is a document that supports and authorizes a payment obligation. In accounting it serves as the backup file for short-term liabilities owed to vendors and suppliers. Outside accounting, “voucher” can also mean a coupon or ticket redeemable for goods or services (common in travel, hospitality, and government programs)….

Voting Trust Certificate A voting trust certificate is a document issued by a limited-life trust that temporarily transfers voting control of a corporation to one or a few designated individuals (voting trustees). Shareholders exchange their common stock for these certificates, which convey all normal shareholder rights—such as receiving dividends—except the right to vote. Voting trusts…

Voting Trust Agreements A voting trust agreement is a contract in which shareholders transfer their voting shares to a trustee in exchange for certificates that represent their ownership. The trustee gains the right to vote those shares for a specified period or until a defined event, effectively concentrating voting power temporarily into the hands of…

Voting Trust A voting trust is a legal arrangement in which shareholders temporarily transfer their shares and corresponding voting rights to a trustee. In return, shareholders receive certificates showing they are beneficiaries of the trust. The trustee typically votes the pooled shares according to the trust agreement or the beneficiaries’ instructions. Key takeaways * A…

Voting Shares: Definition, Types, and Examples What are voting shares? Voting shares give stockholders the right to vote on corporate matters that shape a company’s direction—most commonly the election of the board of directors and approval of major transactions (for example, mergers or sale of the company). Common stock typically carries voting rights; some preferred…

Vostro Accounts Explained Key takeaways * A vostro account is an account a foreign (correspondent) bank holds on behalf of a domestic (respondent) bank, denominated in the correspondent bank’s local currency. * Vostro and nostro are mirror terms reflecting each bank’s perspective: vostro = “your” (from the correspondent’s view); nostro = “our” (from the respondent’s)….

Vortex Indicator (VI) The Vortex Indicator (VI) is a trend-following technical indicator that uses two lines—VI+ (uptrend) and VI− (downtrend)—to identify trend direction, confirm existing trends, and signal potential reversals. VI+ and VI− are typically plotted below a price chart and colored (for example) green and red. Origin The indicator was introduced by Etienne Botes…

Voodoo Economics Voodoo economics is a pejorative term used to criticize supply-side economic policies that rely on large tax cuts for corporations and wealthy individuals to stimulate broad economic growth. Coined by George H.W. Bush during the 1980 Republican primary in 1980, the phrase targeted Ronald Reagan’s signature approach—later called Reaganomics—which combined tax cuts, deregulation,…

Voodoo Accounting Voodoo accounting is a slang term for creative, unethical, or fraudulent accounting practices used to make a company’s financial results look better than they really are. Techniques include inflating revenue, concealing expenses, or otherwise manipulating accounting entries so profits and losses appear to “magically” improve. How it works Companies use voodoo accounting to…

Vomma Definition Vomma is a second-order “Greek” that measures how an option’s vega changes as the implied volatility (σ) of the underlying changes. Formally: Vomma = ∂ν / ∂σ = ∂²V / ∂σ² where V is the option value and ν (vega) is the sensitivity of the option price to volatility. How vomma works Vomma…

Voluntary Trust What it is A voluntary trust (also called an inter vivos or living trust) is a trust created by a person (the settlor or trustor) during their lifetime. It is a legal arrangement in which the settlor transfers assets (the res) to a trustee to hold and manage for the benefit of one…

Voluntary Termination Key takeaways Voluntary termination occurs when an employee elects to leave a job or when an individual cancels a contract early. It differs from employer-initiated termination (layoff, firing, downsizing) because the decision is made by the employee. Employers sometimes request voluntary resignations during downsizing and may offer enhanced exit packages. Quitting typically limits…

Voluntary Simplicity Voluntary simplicity is a lifestyle choice that minimizes needless consumption and the pursuit of wealth for its own sake. Also called simple living or downshifting, it emphasizes wanting less so you can have more time, reduced stress, and a more meaningful life. Reducing consumption can also lower your environmental impact. Key benefits More…

Voluntary Reserve Overview A voluntary reserve is cash or liquid assets an insurance company holds above the minimum reserves required by regulators. These additional reserves—also called additionally held liquid assets—are reported separately in financial statements and serve to strengthen an insurer’s ability to meet obligations beyond the regulatory baseline. How it works State regulators assess…

Voluntary Plan Termination: What it Is and How It Works Key takeaways * Voluntary plan termination is an employer’s decision to end a defined-benefit or defined-contribution retirement plan. Employers must follow federal rules (ERISA-related regulations) and specific termination procedures administered by the plan administrator or trustee. Plan assets must be distributed as soon as administratively…