W-shaped recovery - A W-shaped recovery is an economic cycle of recession and recovery that looks like the letter W on a chart. In a W-shaped recovery, price experiences a sharp decrease for an extended period of time, followed by a sharp rise to test some near resistance levels, a sharp decline to retest the recent lows, and then another sharp rise above the recent resistance levels. This back-to-back drop and bounce gives form to the W-shape pattern formation.
Warrant - Warrants are a type of derivative that grant the right, but not the obligation, to buy or sell a security—most often an equity—at a specific price before expiration. T he cost at which the underlying securities may be purchased or sold is referred to as exercise price or strike price. European warrants may only be exercised on the expiration date, whereas American warrants may be exercised at any time on or before that date. Call warrants and put warrants are terms used to describe warrants that grant the right to buy or sell securities, respectively.
Wash sale - The term wash sale refers to a transaction in which a person sells or trades a security at a loss and then re-purchases the same stock or security, or obtains a contract or option to do so, within 30 days before or after the date when the loss-generating investment was sold. This window of time account as a total of 61-day wait period. Another scenario that leads to a wash sale is when a person sells a security and then, during the 61-day waiting period, their spouse or a business they control purchases a substantially identical investment. Under Internal Revenue Service (IRS) regulations, a tax deduction for a loss on a securities sold in a wash sale is not allowed. This provision is known as the wash-sale rule. The rule is intended to discourage investors from making an investment loss in order to claim a tax deduction while effectively keeping their stake in the securities.
Wash sale rule - An Internal Revenue Service (IRS) policy that forbids a taxpayer from claiming a tax deduction for a loss on a securities sold in a wash sale. A wash sale is one that takes place when a person sells or trades an asset at a loss and then purchases the same stock or security, or obtains a contract or option to do so, within 30 days before or after the sale. The purpose of the wash-sale rule is to discourage individuals and corporations from making an investment loss in order to claim a tax deduction while effectively keeping their stake in the securities.
Weighted average market capitalization indices - Most indices are built by weighting the market capitalization of each stock in the index. Larger corporations make up a larger part of this type of indexes. The S&P 500 Index is an example of that.
Weekly chart - Weekly charts show a succession of data points, every one of which is made up of the price movement over the course of a single trading week. Each candle, bar, or point on a line on a weekly chart indicates the price summary for a specific trading week. A weekly chart displays the high, low, open, and close for the whole week but not the day-by-day trading moves inside that week. The most popular forms of charts used by traders and investors are candlestick charts and bar charts. The weekly chart is generally used for long-term trading.
Weighted average maturity (WAM) - The weighted average maturity (WAM) of a fund determines the average time to maturity of all securities held in the portfolio, weighted by the percentage of net assets owned by each instrument. The computation takes into consideration the final maturity for a fixed income security and the interest rate reset date for any variable rate instruments included in the portfolio. This is a method of calculating a fund's sensitivity to possible interest rate fluctuations.