Financy Glossary
The online dictionary of financial terms



Value Date

The date on which a security is settled following a trade.


Vanilla bond

A bond that has no unusual features.

In English, the adjective vanilla is employed to describe something that is common, generic or bland.


Variable Rate Certificate

A certificate of deposit (COD) where the interest rate varies based on some other variable, such as the prime rate.


Venture Capital

Venture capital is a form of financing for small, early-stage, emerging firms.

Venture capital is typically invested in small, early-stage, emerging firms that the investors deem capable of growing fast. The investor will normally require equity (ownership stake) in the firm in exchange for the investment.


Venture Capital Trust (UK)

In the United Kingdom, a Venture Capital Trust (VCT) is an investment trust that invest in small unquoted companies. Certain conditions must be fulfilled for an investment trust to be considered a VCT in the eyes of the law.

Investing in a trust that is acknowledged as a VCT under U.K. law comes with several tax benefits for the investor:

  • 40% capital gains tax deferral (if shares are held for at least 3 years)
  • 20% income tax relief on the amount of the original investment
  • All dividends are tax fee
  • All gains on disposal after 3 years are tax exempt

When shares are sold, the original capital gains tax liability will be re-triggered

VCT:s only invest in companies where the total amount of assets are valued at less then £15 million.

VCT:s are quoted on the London Stock Exchange.



VIX is the ticker symbol for the CBOE Volatility Index.

This index intends to measure implied volatility of S&P 500 index options. It is nicknamed “the fear index” and “the fear gauge”.

The CBOE Volatility Index is calculated by the Chicago Board Options Exchange (CBOE).



In finance, the term volume typically refers to the number of shares, bonds or contracts traded for a security or on a whole exchange for a given period, also known as market turnover.

Thin trading is when the volume is low – for a security or for a whole exchange.


Volume Weighted Average Price (VWAP)

The volume weighted average price is the value of trades divided by the volume over a given period.

Example: During the last 60 minutes, three trades took place for shares in Company AAA on this exchange. First trade was 100 shares at $40 per share. Second trade was 200 shares at $35 per share. Third trade was 300 shares at $30 per share.

Value of trades: (100 x $40) + (200 x $35) + (300 x $30) = $4,000 + $7,000 + $9,000 = $20,000

Volume: 100 shares + 200 shares + 300 shares = 600 shares.

$20,000 / 600 shares = $33,33

The VWAP for those 60 minutes is $33,33.


Voluntary Liquidation

A voluntary liquidation of a company is one that has been approved by the shareholders of the company.


Voting Trust

A legal trust created to combine the voting power of at least two shareholders. For a set duration of time, the voting rights are transferred to a designated trustee.