A Voting Trust Certificate is a transferable certificate that represents beneficial interest in a voting trust established to centralize corporate control and facilitate reorganization during financial difficulties.
A voucher serves as a receipt for money or any document that supports an entry in a book of account, acting as evidence for financial transactions.
A voucher register is a book or electronic record used to list vouchers, generally in chronological and numerical order. Vouchers are original documents serving as evidence for a business transaction.
A substantive test in an audit to verify that the underlying records accurately represent the transactions entered into by the audited business.
A Vulture Fund is a type of limited partnership that invests in distressed properties, often real estate, with the intent of profiting when prices rebound.
The W-2 Form is a tax form that each employer sends annually to each employee and to the IRS. It includes details of the employee's gross earnings and deductions for federal, state, and local income taxes as well as FICA. Employees are required to attach a copy to their tax returns.
The W-4 Form is used by new employees and existing employees who wish to change the number of personal exemptions claimed for tax withholding purposes. This form directly impacts the amount of federal income tax withheld from an employee's paycheck.
The IRS W-9 form requires taxpayers to provide their Social Security number, employer identification number, or other identification to a payer, enabling the obligation of reporting interest, dividends, royalties, or other payments made to the taxpayer to the IRS.
Consulting statistician and management expert (1900--1993), best known for his work on statistical quality control in Japan. The Union of Japanese Scientists and Engineers awards its annual Deming Prize to a statistician for contributions to statistical theory. The Deming Application Prize is awarded to a company for improved use of statistical theory in organization, consumer research, design of product, and production. Deming's System of Profound Knowledge is the basis for his 14 Points for Management.
An in-depth exploration of wages, including definitions, examples, FAQs, related terms, references, and further reading.
The administrative procedure of establishing and supervising wage levels and operations within an organization to ensure fair compensation practices.
A survey conducted among employers in a labor market to determine pay levels for specific job categories. Typically conducted in the surrounding community or metropolitan area for the purposes of comparability.
A wage assignment is a voluntary transfer of earned wages to a third party for the purpose of paying debts, purchasing savings bonds, paying union dues, or contributing to a pension fund.
A range of salaries for a particular occupation, often determined by levels of seniority and experience.
The highest pay possible within a particular wage bracket, agreed upon as the upper range, commonly used in salary negotiations and organizational pay structures.
Wage control involves measures to regulate the extent to which wages can be increased, typically in percentage terms, and is usually implemented during periods of governmental wage and price restraints to achieve national priorities like controlling inflation.
A wage floor, or minimum wage, is the lowest legal remuneration that employers can pay their workers, established either by law or through an agreed-upon wage bracket in collective bargaining agreements.
Wage incentive is a method of motivating workers to increase their productivity by offering them higher wages for greater output.
Wage protection laws are legal measures that ensure employees receive timely and full payment for their work. These laws help safeguard workers' earnings from wrongful deductions, non-payment, and other forms of wage theft.
An established pay rate for a particular job during a given period of time, typically specified on an hourly basis.
A wage scale is a structured framework outlining the wage rate for each employee in a department, division, or company, taking into account the type of job, its duties, responsibilities, and the general labor market.
Wage Stabilization refers to the act of maintaining wages at a certain level, preventing fluctuations, typically implemented as policy measures to curb inflationary pressure. These policies aim to control rapid changes in wage levels to maintain economic stability.
A macroeconomic phenomenon where rising prices push wages higher, which in turn increases production costs and leads to further price increases, creating a feedback loop.
Wage-push inflation is an inflationary situation in which increasing wages are not offset by rising productivity, leading to higher production costs and, consequently, increased prices for goods and services.
Wages refer to the remuneration paid to hourly paid employees for the work done, typically based on the number of hours spent at the place of work.
Wages costs are expenses incurred by businesses to compensate employees for their labor. These are a critical part of operating costs in any organization.
Wages oncost refers to additional costs incurred by employers over and above the basic wages of employees. It includes expenses such as payroll taxes, workers' compensation, and other employment-related costs.
The Wagner Act, also known as the National Labor Relations Act, is a fundamental legislation enacted in 1935 that significantly strengthened labor's bargaining power and established guidelines to prohibit anti-labor practices by management. It created the National Labor Relations Board (NLRB) to enforce labor laws and support workers' rights.
The phrase 'waiting for the other shoe to drop' is commonly used to describe a situation where one is expecting a related announcement or event to occur after an initial one. This expectation is often based on a belief that subsequent events are contingent upon an original incident.
The period during which the operators of a machine or the machinery itself are idle or waiting for work, materials, or repairs. This is a key concept in manufacturing, logistics, and service industries.
Intentional and voluntary surrender of some known right, which generally may either result from an express agreement or be inferred from circumstances.
A clause in an insurance policy providing that all policy premiums will be waived if the policyholder becomes seriously ill or disabled, either permanently or temporarily, and is therefore unable to pay the premiums.
An audit test that takes a few transactions from the records of a business and follows them through every stage of the accounting system to ensure accuracy and compliance.
A walkout is a sudden work stoppage by employees aimed at securing an improvement in working conditions.
Wall Street is synonymous with the financial markets and institutions of New York, housing the New York Stock Exchange and being the hub of major financial activities in the United States.
A Wallflower stock is a stock that has fallen out of favor with investors and tends to have a low price-earnings ratio, indicating reduced market interest and potentially undervaluation.
The term 'wallpaper' has dual significance: in finance, it refers to worthless securities like bankrupt stocks and bonds, and in computing, it denotes a picture or graphic used as a desktop background.
A War Loan refers to government-issued securities distributed during wartime to raise funds for war efforts. These loans typically carry a fixed interest rate and traditionally do not have a redemption date.
A warehouse is a structure designed for the storage of commercial inventory, used primarily by manufacturers, importers, exporters, wholesalers, and transport businesses.
Warehouse clubs are low-price retail outlets that sell annual memberships to consumers and businesses. These stores are typically established in warehouse-type buildings where merchandise is displayed without any frills.
A warehouse receipt is a document that lists goods or commodities kept for safekeeping in a warehouse. It serves as proof of storage and can be used to transfer ownership of goods without delivering the physical commodities.
The storage of goods in a warehouse or the act of building up a holding of shares in a company prior to making a takeover bid by buying small lots of shares and 'warehousing' them in the name of nominees.
Wares refer to goods or merchandise, often manufactured items of a similar kind, such as glassware. These items are typically sold in bulk or as part of a collection.
Warrants are securities offering the owner the right to subscribe for the ordinary shares of a company at a fixed date and price, and are also used in warehousing as proof for deposited goods.
A warranty is a guarantee provided by a seller to a buyer that the goods or services purchased will perform as promised. If not, a refund, exchange, or repair will be offered at no charge.
A warranty deed is a legal document used in real estate transactions to convey property ownership with guarantees regarding the status of the title.
The warranty of habitability is an implied assurance given by a landlord that an apartment offered for rent is free from safety and health hazards.
A warranty that ensures goods are reasonably fit for the general purposes for which they are sold.
A wash sale is a transaction where an investor sells a security at a loss and quickly repurchases the same or substantially identical security within a specific period. This rule prevents taxpayers from claiming a tax deduction for the loss.
Waste (also referred to as spoilage) is the amount of material lost as part of a production process. Acceptable levels of waste, known as normal loss, are part of the cost of production and are allowed for in the product costs. Any process or activity that does not add value is also considered waste.
The Waste Management scandal was an egregious example of accounting fraud in which top executives manipulated financial statements to meet earnings targets. Spanning over five years from 1992 to 1997, this deceitful practice was eventually uncovered, resulting in significant financial restatements and legal consequences for both the company and its auditors.
A wasting asset is an asset that has a finite life span and steadily declines in value over time, typically due to physical wear and tear or obsolescence.
A list of securities singled out for special surveillance by a brokerage firm, exchanges, or self-regulatory organizations to spot irregularities such as excessive trading volume or potential takeover activities.
Water Damage Insurance provides protection in the event of accidental discharge, leakage, or overflow of water from various systems and through various openings, resulting in damage or destruction of the property scheduled in the policy.
Watered stock refers to shares of a company that are issued at a price much higher than their intrinsic value.
A waybill is a document prepared by a common carrier at the start of a shipment that details the route the goods will follow to their final destination and states the transportation cost. The waybill typically accompanies the shipment to its destination.
A weak dollar refers to a situation where the value of the U.S. dollar has fallen relative to other foreign currencies. This results in the dollar’s decreased purchasing power in comparison to other currencies such as the pound, yen, euro, or francs.
A market characterized by a preponderance of sellers over buyers and a general declining trend in prices.
The Weakest Link Theory states that the reliability of a system is determined by its weakest component. The entire system or process can only be as strong as its weakest link.
Wealth refers to the value of all assets owned by an individual or entity, minus all outstanding debts. It serves as a stock measure of financial well-being, distinct from income, which is a flow measure of financial performance over a period.
The wealth effect refers to the phenomenon in which an increase in personal wealth—whether actual or perceived—leads to an increase in consumer spending, impacting overall economic activity.
The practice of offering high net-worth individuals investment management, financial advice, and estate and tax-planning services as a unified professional service.
A wealth tax is an annual levy on the total value of personal assets, which may include stocks, bonds, real estate, and other types of property. This tax is designed to address wealth inequality by taxing individuals based on their net worth rather than their income.
Wear and tear refers to the reduction in value of a fixed asset as a result of its regular usage and the inevitable damage it sustains over its working life. It is one of the primary reasons behind asset depreciation.
A condition that may apply to the point at which an advertisement or advertising campaign is no longer effective. The wearout factor depends on the frequency of communications, the target market, the quality of the advertising copy, the novelty of the campaign, and the variety of messages used.
A web address, also known as a URL (Uniform Resource Locator), is the address used to access resources on the Internet. It specifies the location of documents, websites, and other resources available online.
A web browser is a computer software application that allows users to read HTML files and navigate the World Wide Web. The most widely recognized browsers include Google Chrome, Mozilla Firefox, Safari, Microsoft Edge, and Opera.
A web page is an HTML document that is made available on the World Wide Web and seen by the user as a page on the screen.
A web server is a computer that is connected to the Internet and contains web pages (HTML files) that can be viewed using a web browser.
A virtual location managed by a single entity that provides information such as text, graphics, and audio files to users, as well as connections (hypertext links, hyperlinks, links) to other Web sites. Every Web site has a Home Page.
A webcam is a camera that is connected to a computer and used to stream live video over the Internet.
A webmaster is responsible for the management, maintenance, and coordination of a website's content, along with ensuring its smooth and efficient operation. This involves technical skills as well as knowledge in web administration.
Weight has various definitions and applications in fields such as advertising, paper stock, physical measures, and print advertising. Each usage context affects its measurement and importance.
A weighted average, or weighted mean, is an arithmetic average that factors the varying degrees of importance of the numbers in a data set. Instead of each of the data points contributing equally to the final average, some data points contribute more than others.
A method of valuing inventory that calculates the cost of goods sold and ending inventory based on the average cost of all units available for sale during the period.
The weighted average cost of capital (WACC) represents a firm's average cost of capital from all sources, including both equity and debt, weighted by their respective usage in the firm's capital structure.
A financial metric used to gauge the average cost of capital by weighting each capital component proportionally.
Understanding the calculation and implication of WACC in managing a company's capital structure and assessing project feasibility.
A business model characterized by minimal reliance on tangible assets, primarily involving internet trading and the exchange of ideas and information.
A welfare state is a form of governance in which the government plays a key role in the protection and promotion of the economic and social well-being of its citizens. This is achieved through a comprehensive array of services such as medical care, minimum income guarantees, and retirement pensions.
A term used to describe individuals or entities that possess a significant amount of wealth and financial stability.
Employee-centered programs featuring proactive personal fitness initiatives, including physical examinations, substance abuse and group counseling, and individualized diet and exercise programs. Wellness programs have proven effective in enhancing employee productivity while reducing absenteeism and healthcare costs.
Western Union is a leading company dominating telegraph and money transfer services in the United States, with a broad global presence.
The Westminster Doctrine refers to the principle in UK tax law that individuals and entities may arrange their financial affairs to minimize tax liability. It originated from the 1936 ruling in Commissioners of Inland Revenue v the Duke of Westminster.
Wetlands, such as swamps, marshes, and bogs, are areas normally saturated with water. Development in these areas is often restricted due to their environmental importance.
The Wheel of Retailing is a retail marketing process through which original low-price discounters upgrade their services and gradually increase prices. This evolution into full-line department stores creates an opportunity for new low-price discounters to enter the market, perpetuating a continuous cycle.
The term 'When Issued' (WI) refers to a transaction made conditionally on the basis that a security, although authorized, has not yet been issued or made available for trading.
Whipsawed refers to a situation in financial markets when a trader experiences rapid and significant price changes that lead to losses. Specifically, the trader buys just before the prices start to decline and sells just before they begin to rise. It is commonly associated with high volatility and unexpected market movements.
A whistleblower is an employee who reports a violation of the law, typically within an organization, to authorities or the public. Whistleblowers play a crucial role in exposing illegal or unethical activities that harm the public trust.
A whistleblower is an employee who exposes wrongdoing, fraud, or malpractice within an organization, either internally or externally, often legally protected to prevent employer retaliation.
A white elephant refers to a cumbersome and expensive possession that is difficult to dispose of, stemming from a tale of ancient Siam where albino elephants were given to disgraced courtiers by the king, leading to their financial ruin.
In retailing, white goods refer to heavy household appliances originally manufactured with a white enamel finish. These include refrigerators, freezers, washers, dryers, and stoves. Today, the term applies to all such goods, regardless of the color or finish.
In corporate finance, a white knight refers to a person or firm that makes a welcomed takeover bid for a company on improved terms, aiming to replace an unacceptable and unwelcome bid from another party, known as a black knight. This tactic helps the target company to find a more suitable and favorable owner.
A white paper is a comprehensive report that investigates a subject to provide an unbiased position. It often indicates the official stance of a government or organization on a particular issue.
White-collar crime encompasses a variety of non-violent offenses committed by businesspersons, confidence men, and public officials, characterized by deceit and misrepresentation. Examples include consumer fraud, bribery, and stock manipulation.
White-collar workers perform non-manual tasks, typically in clerical, administrative, and professional roles. They form a significant portion of the workforce leading modern economies.
A 'White-Shoe Firm' is an anachronistic term originating from the 1950s Ivy League culture, typically used to describe venerable, elite, and reputable broker-dealers known for their conservative business practices.
Whole life insurance is a form of life insurance policy that offers both protection in the event of the insured’s death and builds cash surrender value at a guaranteed rate, which can be borrowed against. The policy remains in force for the lifetime of the insured, given that it is neither canceled nor lapses. The policyholder pays a fixed annual premium that does not increase with age.
A term used in the secondary mortgage market to distinguish an investment that represents an original residential mortgage loan (whole loan) from a loan representing a participation with one or more lenders or a pass-through security representing a pool of mortgages.
A trade association for UK brokers operating in the money markets, the WMBA is responsible for providing key indices like SONIA and EURONIA for overnight lending in sterling and euro markets respectively.
