Business Dictionary

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An alphabetical listing of General terms and items.

Value Added   Dico Tools
Originally, the difference between the cost of bought-in materials and the eventual selling price of the finished product

Value-added Tax   Dico Tools
A tax added at each stage in the manufacture of a product. It acts as a replacement for a sales tax in almost every industrialized country outside North America.

Variable   Dico Tools
An element of data whose changes are the object of a statistical study

Variable Annuity   Dico Tools
An annuity whose payments depend either on the success of investments that underlie it, or on the value of the index

Variable Cost   Dico Tools
A cost of production that is directly proportional to the number of units produced

Variable Interest Rate   Dico Tools
An interest rate that changes, usually in relation to a standard index, during the period of the loan

Variance   Dico Tools
The square of a standard deviation; a measure of the difference between actual performance and forecast, or standard, performance.

Veblen Goods   Dico Tools
  Veblen goods: Goods that are perceived to be exclusive as long as prices remain high or increase. Veblen goods get their name from economist Thorstein Veblen, who was one of the first to look into and write about conspicuous consumption and the concept of seeking status through consumption. Veblen goods are often referred to as "status symbols". High-status items such as luxury cars, expensive shoes or pricey watches remain appealing to certain consumers as long as prices remain high or increase. A decrease in the price of a Veblen good could cause it to become less exclusive, which may reduce consumers' fondness for it.

Venture Capital   Dico Tools
Money used to finance new companies or projects, especially those with high earning potential and high risk.

Venture Funding   Dico Tools
The round of funding for a new company that follows seed funding provided by venture capitalists.

Venture Management   Dico Tools
The collaboration of various sections within an organization to encourage entrepreneurial spirit, increase innovation, and produce successful new products more quickly

Verbal Contract   Dico Tools
An agreement that is oral and not written down. It remains legally enforceable by the parties who have agreed to it.

Vertical Integration   Dico Tools
The potential within an enterprise to incorporate all aspects of management, production, sales and distribution into their business operations. In theory, the greater the vertical integration, the less vulnerable an enterprise is to outside forces.

Vertical Market   Dico Tools
A market that is oriented to one particular specialty, for example, plastics manufacturing or transportation engineering

Viral Marketing   Dico Tools
The rapid spread of a message about a new product or service in a similar way to the spread of a virus

Virtual Organization   Dico Tools
A temporary network of companies, suppliers, customers, or employees, linked by information and communications technologies, with the purpose of delivering a service or product.

Virus   Dico Tools
A computer program designed to damage or destroy computer systems and the information contained within them

Vision Statement   Dico Tools
A statement giving a broad, aspirational image of the future that an organization is aiming to achieve.

Volatility Arbitrage   Dico Tools
  volatility arbitrage: Trading strategies that attempt to exploit differences between the forecasted future volatility of an asset and the implied volatility of options based on that asset. Because options pricing is determined by the volatility of the underlying asset, if the forecasted and implied volatilities differ, there will be a discrepancy between the expected price of the option and its actual market price.  A volatility arbitrage strategy is generally implemented through a delta neutral portfolio consisting of an option and its underlying asset. A long position in an option combined with a short position in the underlying asset is equivalent to a long volatility position. This strategy will be profitable if the realized volatility on the underlying asset eventually proves to be higher than the implied volatility on the option when the trade was initiated. Conversely, a short position in an option combined with a long position in the underlying asset is equivalent to a short volatility position, which will be profitable if the realized volatility on the underlying asset is ultimately lower than the option's implied volatility.  

Volume   Dico Tools
An amount or quantity of business; the volume of a business is the total it sells over a period of time.

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Voting Rights   Dico Tools
The rights that shareholders have to vote on matters affecting a corporation

Vulture Capitalist   Dico Tools
A venture capitalist who structures deals on behalf of an entrepreneur in such a way that the investors benefit rather than the entrepreneur

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