Value investing
The investment style of
attempting to buy underpriced stocks that have the potential to perform well
and appreciate in terms of price.
Value at Risk (VAR)
VAR is the maximum loss over a
target horizon such that there is a low, prespecified probability that the
actual loss will be larger.
Vanilla Issue
A straight fixed rate issue which
has terms and conditions usually accepted as being conventional to a particular
securities market.
Vanishing companies
Companies which have not complied
with specific provisions of the listing agreement and regulations of the stock
exchanges, and are not physically traceable at the registered address mentioned
in the offer document.
Venture Capital
Professional moneys co-invested
with the entrepreneur usually to fund an early stage, more risky venture.
Offsetting the high risk is the promise of higher return that the investor
takes. A venture capitalist not only brings in moneys as “equity capital” (i.e.
without security/charge on assets) but also brings on to the table extremely
valuable domain knowledge ,business contacts, brand equity, strategic advice,
etc. He is a fixed interval investor, whom the entrepreneurs approach without
the risk of “takeover”.
Venture Capital Fund
A fund established in the form of a trust or a company
including a body corporate and registered under the SEBI venture capital fund
regulations which - has a dedicated pool of capital, raised in a manner
specified in the regulations and invests in venture capital undertaking in
accordance with the regulations.
Venture Capital Undertaking
A domestic company whose shares
are not listed an a recognised stock exchange in India and which is engaged in
the business for providing services, production or manufacture of article or
things or does not include such activities or sectors which are specified in
the negative list by the Board with the approval of the Central Government.
Vertical spread
Buying and selling puts or calls
of the same expiration month but with different strike prices.
Vesting
The process by which the employee
is given the right to apply for shares of the company against the option
granted to him in pursuance of Employee Stock Option Scheme.
Volatility
Volatility equates to the
variability of returns from an investment. It is an acceptable substitute for
risk; the greater the volatility, the greater is the risk that an investment
will not turn out as hoped because its market price happens to be on the
downswing of a bounce at the time that it needs to be cashed in. The problem is
that future volatility is hard to predict and measures of past volatility can,
themselves, be variable, depending on how frequently returns are measured
(weekly or monthly, for example) and for how long. Therefore, putting
expectations of future volatility into predictive models is of limited use, but
resorting to using past levels of volatility is equally limited.
Volume of Trading
The total number of shares which
changes hands in a particular company’s securities. This information is useful
in explaining and interpreting fluctuation in share prices.
Voluntary delisting
Delisting of securities of a body
corporate voluntarily by a promoter or an acquirer or any other person other
than the stock exchange
Voting Rights
The entitlement of a shareholder
to exercise vote in the general meeting of a company.
