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Voluntary Liquidation What it is A voluntary liquidation is a company-initiated process to wind up and dissolve a solvent business. It ends operations, sells assets, pays creditors according to priority, and distributes any remaining funds to shareholders. It is initiated by the company’s leadership and approved by shareholders—not imposed by a court. Key takeaways Voluntary…

Voluntary Life Insurance Key takeaways * Voluntary life insurance is an optional, employer-offered benefit that pays a cash death benefit to a named beneficiary. * Premiums are typically paid by payroll deduction and are often less expensive than individual policies because they’re sold through a group plan. * Coverage may be available at hire, during…

Voluntary Lien A voluntary lien is a claim placed on property with the consent of the owner to secure repayment of a debt. It is created through a contract or agreement between a borrower and a lender—for example, when you take out a mortgage and agree that the home will serve as collateral for the…

Voluntary Foreclosure What it is Voluntary foreclosure occurs when a borrower who can no longer make mortgage payments surrenders the property to the lender rather than waiting for the lender to initiate foreclosure. It is a borrower-initiated option intended to shorten the process and reduce costs and uncertainty compared with an involuntary foreclosure. Common labels:…

Voluntary Export Restraint (VER) A voluntary export restraint (VER) is a self-imposed limit by an exporting country (or firms within it) on the quantity of a particular good shipped to an importing country. VERs are a form of non‑tariff barrier used to reduce foreign competition in an importing country without imposing formal tariffs or quotas…

Voluntary Employees’ Beneficiary Association (VEBA) Plan Key takeaways A VEBA is a tax-exempt trust (IRC §501(c)(9)) created to pay for eligible medical and similar benefits for employees, dependents, or designated beneficiaries. VEBAs are typically employer-funded; employee contributions are uncommon and individual elections are generally not allowed. Employers must obtain an IRS letter of determination for…

Voluntary Employees’ Beneficiary Association (VEBA) What is a VEBA? A Voluntary Employees’ Beneficiary Association (VEBA) is a tax-exempt trust established to provide employee benefits. VEBAs are created to hold and invest employer and, in some cases, employee contributions that will be used to pay qualifying benefits such as health care, life insurance, disability, and other…

Voluntary Conveyance: Definition, Uses, and Risks Voluntary conveyance is the deliberate transfer of real estate title from one party to another without adequate consideration (i.e., without fair market compensation). Because the transfer lacks normal payment, it often requires a clear legal reason and can carry tax and creditor implications. How voluntary conveyance is used Preventing…

Voluntary Compliance: What it Means and How it Works Voluntary compliance is the principle that taxpayers will accurately calculate, report, and pay their taxes without the government having to audit every return. The U.S. income tax system relies on this assumption while using reporting systems and enforcement tools to promote and verify compliance. How the…

Voluntary Bankruptcy: What It Means and How It Works Key takeaways Voluntary bankruptcy is initiated by a debtor who cannot pay their debts and seeks court protection. It differs from involuntary bankruptcy, which is started by creditors, and from technical bankruptcy, which is a default not yet adjudicated in court. Filing rules and fees vary…

Voluntary Accumulation Plan A voluntary accumulation plan is a method for building an investment in a mutual fund by making regular, fixed-dollar purchases of shares. Typically set up as automatic monthly contributions, it applies the dollar-cost averaging strategy to help investors accumulate shares over time without trying to time the market. How it works You…

Voluntary Accidental Death and Dismemberment Insurance (VAD&D) Voluntary Accidental Death and Dismemberment (VAD&D) insurance is a limited, low-cost benefit that pays a cash sum if the insured dies or suffers certain disabling injuries caused by an accident. It’s commonly offered as an optional payroll-deducted benefit through employers or as a rider to a life insurance…

Volumetric Production Payment (VPP) Overview A Volumetric Production Payment (VPP) is a financing structure in which the owner of oil or gas reserves sells or pledges a specified volume (or percentage) of future production to an investor in exchange for upfront cash. The investor receives a stated monthly quota of the commodity (or the cash…

Volume-Weighted Average Price (VWAP) What is VWAP? The volume-weighted average price (VWAP) is an intraday technical indicator that shows the average price a security has traded at during a trading session, weighted by trading volume. It appears as a single smooth line on intraday charts and resets at the start of each trading day. Traders…

Volume Price Trend (VPT) Indicator The Volume Price Trend (VPT) indicator is a cumulative momentum tool that combines price change and trading volume to show the strength behind a security’s price movement. It helps traders assess whether price moves are being supported by volume (demand) or opposed by it (supply). How VPT is calculated VPT…

Volume of Trade: What It Is and Why It Matters What is volume of trade? Volume of trade measures the total number of shares or contracts exchanged for a specific security during a defined time period (for example, a trading day). It applies across markets — stocks, bonds, futures, and commodities — and is a…

Volume Discount: What It Means and How It Works A volume discount is a price reduction granted to buyers who purchase goods or services in large quantities. By lowering the cost per unit for bulk purchases, sellers encourage larger orders, reduce inventory, and take advantage of economies of scale. Buyers benefit from lower unit costs…

Volume Analysis: Meaning, Calculation, and How to Use It Key takeaways * Volume analysis examines how many shares or contracts trade in a given period and helps confirm price moves. * Rising prices on increasing volume suggest a strong bullish trend; falling prices on increasing volume suggest a strengthening bearish trend. * Two common volume-based…

Stock Volume Explained Stock volume is the number of shares or contracts traded during a specific period (commonly a trading day). It measures market activity and liquidity, helping traders and investors assess the strength and credibility of price movements and the ease of executing orders. Key takeaways Volume equals the total shares/contracts exchanged between buyers…

Volcker Rule The Volcker Rule is a U.S. banking regulation that limits risky trading and certain fund investments by banks. It was designed to reduce the likelihood that banks would use customer deposits and federally insured capital to make speculative investments that could threaten financial stability. Key points Prohibits banks from engaging in short-term proprietary…

Volatility Swap A volatility swap is a forward-style contract that pays a cash amount based on the difference between the realized volatility of an underlying asset and a pre-agreed volatility strike. It lets participants take a pure view on volatility without taking directional exposure to the underlying asset’s price. Key points Payoff = Notional ×…

Volatility Smile: What It Is and What It Tells Options Traders Key takeaways A volatility smile is the U-shaped pattern that appears when implied volatility (IV) is plotted against strike prices for options on the same underlying with the same expiration. IV is typically lowest for at-the-money (ATM) strikes and rises for both in-the-money (ITM)…

Volatility Skew: Insights Into Market Sentiment and Options Pricing Key takeaways Volatility skew describes how implied volatility (IV) varies across options with the same expiration but different strike prices. Skew shapes (positive/forward, negative/reverse, smile, smirk, flat) reveal market expectations about direction and the likelihood of large moves. Skew is a useful input for pricing, hedging,…

Volatility Ratio Key takeaways The volatility ratio (VR) compares a single period’s true range to its recent average true range to highlight changes in price volatility. VR > 1 indicates the current period’s price range is larger than average; VR < 1 indicates it is smaller. Traders use VR to detect unusually large or small…

Volatility Quote Trading Volatility measures how widely an asset’s returns fluctuate over time. In markets, high volatility means large price swings (up or down); low volatility indicates steadier prices. Traders use volatility to assess risk, price options, and identify trading opportunities. How volatility is measured Standard deviation and variance quantify how returns deviate from their…

Volatility Arbitrage Key takeaways Volatility arbitrage aims to profit from differences between an asset’s expected (realized) volatility and the implied volatility priced into its options. Strategies typically isolate volatility exposure by creating delta-neutral positions (option + hedge in the underlying). Success requires being correct about the direction and timing of volatility changes; risks include time…

Volatility: Meaning in Finance and How It Works With Stocks What is volatility? Volatility is a statistical measure of how much the price or returns of an asset fluctuate over a given period. It is typically expressed as an annualized percentage and is commonly estimated using the standard deviation (or variance) of returns. Higher volatility…

Voidable Contract: Definition, How It Works, and Examples A voidable contract is a valid, legally enforceable agreement that one party can later cancel or reject because of a legal defect. The right to cancel is called disaffirmance. Until the affected party disaffirms the agreement, the contract remains enforceable. Key takeaways A voidable contract is valid…

Void Transaction A void transaction cancels a card sale before funds are transferred from the cardholder’s account to the merchant. It stops the payment during the pre-settlement stage, so the merchant never receives the money and the charge typically disappears from the cardholder’s account after a short pending period. How voids work Card transactions involve…

Void Contracts Explained A void contract is an agreement that is legally unenforceable from the moment it is created. Because it lacks one or more essential legal elements or violates law or public policy, a void contract is treated as if it never existed and cannot be enforced by either party. Key takeaways A void…

Voice-over-Internet Protocol (VoIP) Voice-over-Internet Protocol (VoIP) is a communications technology that carries voice calls over Internet connections instead of traditional analog phone lines. It converts audio into digital packets that travel across IP networks, enabling voice, video, and conferencing services at much lower cost and greater flexibility than legacy telephone systems. Key takeaways VoIP carries…

Vocational Degree What is a vocational degree? A vocational degree is an academic certificate awarded to students who complete focused training for a specific trade or occupation. These programs emphasize practical skills and job readiness rather than broad liberal-arts education. Common vocational fields include medical coding and billing, automotive technology, cosmetology, electrical work, nursing support,…

Vladimir Lenin: Architect of the Bolshevik Revolution and Soviet Leader Key takeaways * Leader of the Bolshevik Revolution (1917) that toppled Russia’s provisional government and led to the founding of the USSR. * Implemented policies to nationalize industry and redistribute land, but used violent repression that contributed to mass death and suffering. * Introduced the…

VIX Options: Trading and Hedging Market Volatility What is the VIX? The Cboe Volatility Index (VIX) measures the market’s expectation of 30‑day forward volatility for the S&P 500. It is calculated from prices of S&P 500 options and is often called the “fear index” because it tends to rise sharply during periods of market stress…

VIX (CBOE Volatility Index) Key takeaways * The VIX measures the market’s expectation of 30-day volatility for the S&P 500 and is often called the “Fear Index.” * Values above ~30 signal elevated fear/uncertainty; values below ~20 indicate relative calm. Long-term average ≈ 21. * The VIX itself is not tradable, but investors gain exposure…