Financial Glossary

A B C D E F G H I J-K L M N O P-Q R S T U V W-Z

Value: An investment strategy that is based on acquiring out of favor securities whose prices do not yet reflect the companies' intrinsic value and/or are "underfollowed" by analysts. Normally asset, cash flow, book value based.

Venture Capital - An investment in a start-up business that is perceived to have excellent growth prospects but does not have access to capital markets. It is a type of financing sought by early-stage companies seeking to grow rapidly in which cash is typically exchanged for equity.

Venture Capital Financing: An investment in a startup business that is perceived to have excellent growth prospects but does not have access to capital markets. Type of financing sought by early-stage companies seeking to grow rapidly.

Vesting schedules: Timetables for stock grants and options mandating that entrepreneurs earn (vest) their equity stakes over a number of years, rather than upon conversion of the stock options. This guarantees to investors and the market that the entrepreneurs will stick around, rather than converting and cashing in their shares.

Vintage Year: The year in which the venture firm began making investments. Often, those funds with "vintage years" at the top of the market will have lower than average returns because portfolio company valuations were high, e.g an Internet Fund started in vintage year 1998.

Volatility: Is the measure of the degree of dispersion of returns around the mean. Standard deviation is used as a statistical measure of this. Volatility is one of several investment risks.

Voluntary Redemption: is the right of a company to repurchase some or all of an investors' outstanding shares at a stated price at a given time in the future. The purchase price is usually the Issue Price, increased by Cumulative Dividends.

Voting Right: The common stockholders' right to vote their stock in the affairs of the company. Preferred stock usually has the right to vote when preferred dividends are in default for a specified amount of time. The right to vote may be delegated by the stockholder to another person.

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