Financial Terms and Definitions » V

Vendor Financing

ashivapu — Thu, 10 Dec 2009 19:49:43 +0000

A loan from one company to another which is used to buy goods from the company providing the loan.

Using the method, the vendor increases sales, earns interest, and may sometimes also acquire an interest in the customer. This increases the risk profile of a company if it is carried out on a large scale, since many companies do not have the skill to conduct credit analysis. Large, creditworthy buyers are unlikely to make use of this arrangement, since they will be able to borrow money at lower rates from other sources.

Venture Capital

ashivapu — Sat, 03 Oct 2009 04:54:53 +0000

Venture capital is a type of private equity capital that smaller companies look to raise in order to expand and grow their business. Investors also known has venture capitalist exchange cash positions in exchange for a partial stake in the company or some form of future payment. Related posts:Capital Kickback Initial Public Offering (IPO) Related posts:

Volatility

ashivapu — Fri, 02 Oct 2009 21:39:20 +0000

A measure of how unstable or stable a current stock’s price is. Something considered volatile means the stock price is constantly moving up and down. Whereas, something with little to no volatility means the stock doesn’t move much or slowly moves in one direction. Related posts:Moving Average Crossover Moving Average Cash Flow Related posts:

Volume

ashivapu — Fri, 02 Oct 2009 04:09:31 +0000

The number of shares, bonds or contracts traded during a given period, for a security or an entire exchange. Also called trading volume.

Many traders use the size of a given day’s volume to signify the importance of its respective price movement.

Speak Stocks: Volume 101