V-shape recovery - A steep drop in price action followed by a quick recovery within a limited time period. When displayed on a chart, price activity looks like a "V". For those studying macroeconomics, in particular, a V-shaped recovery depicts the layout of a chart that indicates a period of recessions and a subsequent recoveries. Following a steep decrease in these measurements, a V-shaped recovery entails a fast increase in price, back to or near its upper levels prior to the decline.
Valuation - A company's estimated worth or value; also the value investors give to a particular stock of company share. The analytical process of determining the current (or future) worth of an asset or a company. There are numerous methods for performing an evaluation. When determining a company's value, an analyst considers a variety of factors, including the management of the company, the makeup of its capital structure, the likelihood of future earnings, and the market value of its assets.
Valuation analysis - The technique of valuation analysis is used to determine the rough value or worth of any item, including businesses, stocks, fixed-income securities, commodities, real estate, and other assets. The analyst may employ various methodologies to value analysis for various asset types, but the common thread will be a focus on the asset's underlying fundamentals.
Value-added - The term value-added refers to the economic improvement a business makes to its goods or services before offering them on the market. Value added explains how businesses can charge more for their products or services than it costs to make them. Adding value to products and services is critical since it gives consumers a reason to buy, enhancing a company's revenue and bottom line.
Value averaging (VA) - Value averaging (VA) is an investing method that, like dollar-cost averaging (DCA), makes consistent monthly contributions but differs in how the amount of each monthly contribution is calculated. In value averaging, the investor sets a monthly target growth rate or contribution amount for their asset base or portfolio and then modifies it each month based on the relative gain or loss on the initial asset base.
Value-based pricing - A pricing approach that bases prices primarily on the perceived value of a product or service by the consumer. Value pricing is customer-focused pricing, which means that businesses set their prices in accordance with what consumers think a product is worth.
Value investing - A method whereby investors buy equities securities they think are being sold for less than their assessed actual worth.
Value stock - Usually a slower-growing company that is undervalued or heavily discounted. A value stock is a stock that looks to trade at a cheaper price relative to its fundamentals, such as dividends, earnings, or sales, making it enticing to value investors. A value stock is sometimes contrasted with a growth stock.
Value-style funds - Value-style funds often invest in undervalued companies. Value funds may also choose companies with solid fundamentals whose shares are cheap but starting to rise.
Vega - Price sensitivity of an option to changes in the volatility of its underlying asset. Vega is a measure of how much an option contract's price varies in response to a 1% change in the underlying asset's implied volatility.
Venture capitalist (VC) - A venture capitalist (VC) is a type of private equity investor who invests money in growing businesses in exchange for an equity ownership. This could include providing beginning capital or aiding small businesses that want to grow but lack access to equity markets.
Vertical analysis - Vertical analysis is a technique for analyzing financial statements in which each line item is listed as a percentage of a base amount. Therefore, 1) line items on an income statement can be expressed as a percentage of gross sales, 2) while line items on a balance sheet can be expressed as a percentage of total assets or liabilities, 3) and vertical analysis of a cash flow statement displays each cash inflow or outflow as a percentage of the total cash inflows.
Vertical spread - A vertical spread is the simultaneous purchase and sale of options of the same kind (i.e., puts or calls) and expiration date, but with different strike prices. The position of the strike prices is where the name vertical originates. In contrast, a horizontal spread, also known as a calendar spread, involves the simultaneous purchase and sale of an identical option type with an identical strike price but a different expiration date.
Visible supply - Visible supply is the quantity of a good or commodity that is currently being carried or stored and is available for purchase or sale. This supply is crucial because it specifies a precise amount of products that are accessible for acquisition or delivery following the assignment of futures contracts. For example, all corn stored in granaries or storage facilities, as well as corn being transported from farms, are included in the visible supply.
VIX option - A VIX option is a non-equity index option that tracks and uses the Cboe Volatility Index as its underlying asset.
Volatility - Volatility is a statistical measure of the spread of a security's or market index's returns. In most circumstances, a security is riskier the higher its volatility. Volatility is frequently calculated using the standard deviation or variance of returns from the same securities or market index. Volatility in the financial markets is frequently correlated with significant swings in either direction. For instance, a market is considered volatile when it fluctuates by more than 1% over an extended period of time. The volatility of an asset is an important consideration when pricing options contracts.
Volatility index (VIX) - Real-time volatility index that represents market expectations for the relative strength of short-term price fluctuations in the S&P 500 Index (SPX). It generates a 30-day forward estimate of volatility as it is generated from the pricing of SPX index options with near-term expiration dates. Volatility is frequently used to evaluate market sentiment, particularly the level of anxiety and fear among market players. The index is more frequently referred to the fear indicator, or simply as the VIX. It was founded by the Cboe Options Exchange (Cboe) and is managed by Cboe Global Markets. It is an important index as it offers a measurable gauge of market risk and investor sentiment.
Volatility ratio - Technical indicators used to detect price patterns and breakouts. True range is used in technical analysis to determine how a security's price is moving on a given day in compared to its previous volatility. The most popular variants of volatility ratios are variations of average true range (ATR).
Volume - The amount of an asset or security traded during a specified period of time, usually over the course of one day. For example, stock trading volume refers to the total number of shares of a securities traded during the entirety of one trading session (from open to close). Trading volume, as well as fluctuations in volume over time, are key information for technical traders.
Volume analysis - The analysis of how many shares or contracts of a securities have been traded in a specific time frame. Technical analysts employ volume analysis as one of several aspects that influence their trading decisions. Investors can identify the significance of an asset's price fluctuations by monitoring its volume trends in combination with price changes.
Volume price trend indicator (VPT) - Indicator that assists in determining the direction and strength of a security's price change. The indicator is a cumulative volume line that, depending on whether the security is moving higher or downward, adds or subtracts a multiple of the percentage change in the trend and current volume of a share price.
Volume-weighted average price (VWAP) - An intraday technical indicator that displays the daily average price at which a security has traded in terms of both volume and price. The VWAP resets at the beginning of each new trading session. VWAP is an important indicator, especially for day trading, because it provides traders with price information into both the trend and value of a security.
Vortex indicator - A technical indicator used to detect trend reversals and validate present trends, made up of two lines: an uptrend line (VI+) and a downtrend line (VI-). Usually, these two lines are red and green, respectively.
Voting shares - Shares with voting rights are those that allow the holder to cast a vote for decisions affecting corporate policy. The majority of the time, voting shares are represented by a company's common stock. Voting rights are occasionally absent from various classes of shares, such as preferred stock.