Category: Financial Terms

Wide Variety Wide variety is a merchandising strategy that attracts customers by offering a broad, diverse mix of products within a relatively compact retail space. Instead of stocking many sizes, colors, or brands of a single item, wide-variety retailers emphasize range across categories—creating a “treasure hunt” or one-stop convenience experience. How it works Stock a…

Wide-Ranging Days: What They Mean, How They Work What is a wide-ranging day? A wide-ranging day is a trading day in which a stock’s high and low are much farther apart than on a typical day. These days reflect elevated volatility and often precede or accompany significant shifts in market sentiment. Explore More Resources ›…

Wide Economic Moat: Meaning, How It Works, and Sources Definition A wide economic moat is a durable competitive advantage that helps a company protect its market share and long-term profitability from rivals. The term evokes the defensive moats around medieval castles: the wider the moat, the harder it is for competitors to encroach. Key takeaways…

Wide Basis A wide basis describes a large gap between a commodity’s local cash (spot) price and its futures price. It signals a deviation from market equilibrium and can point to supply/demand imbalances, illiquidity, or elevated carrying costs. Normal market forces typically cause the basis to narrow as a futures contract approaches expiration. What the…

Whoops: the WPPSS Collapse and Its Legacy Whoops was a derogatory nickname for the Washington Public Power Supply System (WPPSS), a public power consortium that experienced one of the largest municipal finance failures in U.S. history. The nickname reflected widespread criticism after the organization’s ambitious nuclear program collapsed amid cost overruns, construction problems, legal rulings,…

Wholly-Owned Subsidiary: Definition and Overview A wholly-owned subsidiary is a company whose entire outstanding share capital is owned by another company (the parent). Although fully owned and controlled by the parent, the subsidiary remains a separate legal entity with its own management, assets, liabilities, bank accounts, and records. Key takeaways: * The parent has full…

Wholesaling What is wholesaling? Wholesaling is the business of buying large quantities of goods from manufacturers or suppliers at discounted prices and reselling them—typically to retailers, other businesses, or institutional buyers. Wholesalers earn profit from the margin between their purchase price and the price charged to their customers. How it works Wholesaler purchases in bulk…

Wholesale Trade: Definition and Why It Matters Wholesale trade is an economic indicator that measures the U.S. dollar value of merchant wholesalers’ sales and inventories. It covers firms that sell goods to governments, institutions, other businesses, and retailers—not to the general public. Wholesale activity sits between production and retail distribution and includes merchandise originating from…

Wholesale Price Index (WPI) Key takeaways * The Wholesale Price Index (WPI) tracks changes in prices of goods at the producer or wholesale stage, before they reach retail consumers. * It serves as an inflation indicator for the earlier stages of the supply chain. * In the United States the WPI was redefined and renamed…

Wholesale Money: What it Is and How It Works Wholesale money refers to large sums of short-term financing exchanged between financial institutions and large corporations in the money markets. It underpins liquidity in the financial system and includes a range of tradable short-term instruments. Common Instruments Treasury bills Commercial paper Certificates of deposit (CDs) and…

Wholesale Insurance: What it is and how it works Wholesale insurance (also called franchise insurance) provides coverage for small employer groups or risks that cannot obtain typical group or retail insurance. Policies are issued as individual contracts for each person but generally contain the same provisions across the group. Key points Typically used by employer…

Understanding Wholesale Energy: Bulk Buying and Selling Explained Key takeaways Wholesale energy is the bulk purchase and sale of energy products—mainly electricity—between producers, retailers, traders, and large consumers. Modern wholesale markets emerged after utility deregulation and restructuring in the 1990s and are coordinated by independent system operators or market operators. Benefits include improved reliability, more…

Wholesale Banking What is wholesale banking? Wholesale banking delivers financial services to large institutional clients—corporations, government agencies, other banks, pension funds, and large real‑estate developers. It focuses on high‑value, complex transactions and tailored solutions such as corporate lending, trade finance, underwriting, currency services, and advisory work for mergers and acquisitions. How it works Wholesale banking…

Whole Loan — Definition and Overview A whole loan is a single loan made by one lender to one borrower. Common examples include mortgage, personal, and commercial loans. While a lender may hold a whole loan on its balance sheet and service it, many lenders sell whole loans to institutional buyers to free up capital…

What is whole life insurance? Whole life insurance is a form of permanent life insurance that provides lifetime coverage and a guaranteed death benefit to beneficiaries, as long as premiums are paid. Unlike term insurance, whole life also includes a savings component — called the cash value — that grows on a tax-deferred basis and…

Whole-Life Cost: What It Is and Why It Matters Whole-life cost (also called life-cycle cost or lifetime cost) is the total expense of owning an asset over its entire life — from acquisition and installation through operation, maintenance, and disposal. It includes direct financial outlays as well as often-overlooked costs such as environmental and social…

Whole Life Annuity Due: What It Is and How It Works Overview A whole life annuity due is an insurance contract that pays a guaranteed income for the annuitant’s remaining lifetime, with each payment made at the beginning of the payment period (monthly, quarterly, semiannually, or annually). Because payments start at the period’s start, an…

Whole Life Annuity A whole life annuity (also called a life annuity) is an insurance contract that converts a lump sum into a guaranteed stream of payments for as long as the annuitant lives. People commonly buy them to secure predictable retirement income. How it works Purchase: You pay a lump sum or series of…

Whitewash Resolution A whitewash resolution is a shareholder-approved condition that allows a target company to provide financial assistance to an acquiring company while protecting the target’s creditors and solvency. It is commonly used in mergers and acquisitions to prevent buyers from exploiting a target’s assets and leaving it unable to meet its obligations. How it…

White Squire: What it Is and How It Works Overview A white squire is a friendly investor or company that purchases a partial stake in a target firm to block or deter a hostile takeover. Unlike a white knight, which typically acquires the entire company to fend off an unwanted bid, a white squire takes…

White-Shoe Firm Key takeaways A white‑shoe firm is a long‑established, prestigious company—originally in law but now also in banking, accounting, and consulting. The term evokes stability, elite clientele, conservative culture, and often historical associations with Ivy League and WASP networks. Its origin traces to white buck shoes popular at Ivy League schools; the phrase entered…

White Paper What is a white paper? A white paper is a detailed informational document issued by a company, nonprofit, or government body to explain, promote, or justify a product, service, methodology, policy, or technical solution. Unlike marketing collateral that relies on flashy design and slogans, white papers present researched, evidence-based analysis intended to inform…

White List States: What They Are and How They Work White list states are U.S. jurisdictions that permit admitted (licensed) insurance companies to place coverage with non‑admitted insurers when needed. This placement of coverage with non‑admitted insurers is commonly called surplus lines (also known as excess lines or specialty/non‑admitted insurance). Key takeaways White list states…

White Label Product Key takeaways A white label product is manufactured by one company and branded and sold by another. It lets retailers and brands offer products quickly and cost-effectively without in-house manufacturing. Common across retail, beauty, food and beverage, health supplements, electronics, and even services. Benefits include faster time to market, lower development costs,…

Key takeaways A white knight is a friendly buyer that acquires a company to prevent a hostile takeover. The white knight typically offers better terms or preserves management and operations compared with an unfriendly bidder. White knights are one of several defensive strategies; others include poison pills, golden parachutes, and crown-jewel defenses. What is a…

White Elephant: Meaning, History, and Examples What is a white elephant? A white elephant is a burdensome asset whose cost of upkeep, operation, or maintenance far outweighs its usefulness or value. In finance and investing, the term typically describes property, equipment, or projects that are expensive to run, difficult to sell, and unlikely to generate…

White-Collar Crime White-collar crime refers to nonviolent, financially motivated wrongdoing carried out through deception, concealment, or breach of trust—often by individuals in professional or managerial positions. Common offenses include securities fraud, embezzlement, insider trading, corporate accounting fraud, Ponzi schemes, money laundering, and intellectual property theft. These crimes can erode investor confidence, cause large financial losses,…

What is a white-collar job? A white-collar job generally refers to professional, administrative, or managerial work performed in an office or similar non-manual setting. These roles typically require specialized education, training, or credentials and focus on cognitive or organizational tasks rather than physical labor. Typical examples: * Managers and executives * Lawyers, accountants, and finance…

White Candlestick What it is A white candlestick (often shown as white, green, or hollow) marks a period in which a security closed at a higher price than it opened. It signals bullish price action for the chosen time frame (e.g., minute, hour, day, week). How to read a candlestick A candlestick visually summarizes four…

Whistleblower: Definition, Roles, Protections, and Notable Examples Key takeaways A whistleblower exposes illegal, unsafe, or fraudulent activities within an organization. Protections exist to prevent retaliation (e.g., demotion, termination, or legal threats) and are enforced by agencies such as OSHA and the SEC; federal employees are protected under the Whistleblower Protection Act of 1989. Whistleblowers can…

Whisper Stock: Definition and How It Works A whisper stock is a public company’s share that becomes the subject of market speculation—most often about an imminent takeover or other material event. Rumors can trigger a sudden surge in trading volume and a rapid price increase as investors try to buy before an official announcement. If…

Whisper Number: What It Is, Myths, and an Example Key takeaways A whisper number is an unofficial, unpublished expectation for a company’s upcoming earnings (or other data) shared informally among traders and investors. It often differs from the published consensus estimate and can drive market reactions. Whisper numbers can be useful but are unreliable —…

Whipsaw: Definition and How It Affects Traders What is a whipsaw? A whipsaw is a rapid price reversal in a security where movement in one direction is quickly followed by an abrupt move in the opposite direction. It commonly appears in volatile markets and can wipe out short-term gains or trigger losses. Explore More Resources…

When Issued (WI) Transactions When issued (WI) transactions are conditional trades in securities that have been authorized or announced but not yet actually issued. They allow investors to buy or sell the right to receive a security before the official issuance and settlement occur. Common WI instruments include new Treasury issues, stock splits, spinoff shares,…

Wharton School Overview The Wharton School of the University of Pennsylvania—commonly called Wharton—is one of the world’s leading business schools. Founded in 1881 as the United States’ first collegiate business school, Wharton is best known for its rigorous finance education but offers broad programs across business disciplines and global initiatives. Key takeaways Wharton is a…