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WARRANT
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An instrument giving the holder the right to purchase securities at an indicated price within a specified time limit. Warrants are usually issued together with a new issue of securities as an inducement to investors to purchase the new issue.
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WEIGHTED AVERAGE COST OF CAPITAL (WACC)
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An average representing the expected return on all of a company's securities. Each source of capital, such as stocks, bonds and debt, is weighted in the calculation according to its influence in the company's capital structure.
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WEALTH EFFECT
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An increase in consumer spending based on the perceived wealth created by the rising value of stock market portfolios.
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WHEN ISSUED
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Indicates a conditional transaction in a security authorized for issuance, but not as yet actually issued.
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WHISPER NUMBER
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Rumored earnings numbers that are about to be reported, especially when they differ from the consensus forecast.
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WIDOW AND ORPHAN STOCK
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Safe stock, most commonly found in non-cyclical industries, and usually paying higher than average dividends.
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WINDOW DRESSING
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The deceptive practice of some investment funds, in which recently weak holdings are sold and recently strong holdings are bought just before the fund's holdings are made public, in order to give the appearance that they've been holding well performing stocks in the reporting period.
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WORLD BANK
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An agency of the United Nations established at the end of the Second World War to promote post-war economic recovery, development and trade, principally by providing development finance. The Bank promotes economic development and growth in developing countries by providing investment resources (e.g. capital and expertise) in support of development projects and microeconomic policy reforms that contribute to growth.
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WORLD TRADE ORGANIZATION (WTO)
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Established on January 1, 1995 to replace the Secretariat of the General Agreement on Tariffs and Trade. It provides the principal contractual obligation determining how governments frame and implement trade legislation and regulations. It also provides the multi-lateral platform on which trade relations among countries evolve through collective debate, negotiation and adjudication.
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WORKING CAPITAL
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Current assets minus current liabilities. This figure is an indication of a company's ability to meet its short-term debts.
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WRAP ACCOUNT
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Also called a managed account. This is an account, usually offered by brokerage firms to individual investors, wherein a flat quarterly or annual fee (% of assets) is charged for a comprehensive portfolio management relationship. The client is given the choice of a wide variety of professional investment firms with differing specialities. There are no-load sales charges and the fee includes: all trades and administrative fees; goal setting consultation; independent performance monitoring; and regular review meetings with the broker.
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WTO
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See World Trade Organization.
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