The role of this glossary is to present brief definitions of most of the key concepts in corporate finance and management (in total 900 names-definitions) with aim the reader to be able to understand and become familiar with the terminology in the analyses that will present in the category Corporate & Business.
Additionally, we hope that the reader by acquiring intimacy with the specific terminology, he will also love the science of finance and management, giving to it a significant part of his personal time.
In the following glossary we tried to include the most well-known definitions and terms in the field of Corporate Finance & Management. If you still find that a term or definition is missing and you know that it can be included in this glossary, please do not hesitate to contact us via the contact form of our web-site (Contact Us) and the Liberal Globe will edit it and will include it.
Glossary Corporate Finance & Management
There are currently 13 names in this directory beginning with the letter V.
Value additivity principle (VAP) a quality of the NPV method of capital budgeting which enables managers to consider each project independently. The sum of a project NPVs represents the value added to the corporation by taking them on.
Value chain an approach to strategy which analyzes the steps or chain of activities in the firm to find opportunities for reducing cost outlays while adding product characteristics valued by customers.
Value engineeringthe analysis of the operation of a product or service, estimating the value of each operation, and attempting to improve the operation by trying to keep costs low at each step or part.
Variable budgetsare budgets constructed by distinguishing between period costs (costs that vary only with time or remain fixed over time) and variable costs (costs that vary to some extent with budgeted expenses of an organizational unit as they vary with volume).
Variancemean squared deviation from the expected value-a measure of variability.
Variation margin the daily gains or losses on a futures contract that are credited to the investor’s margin account.
Venture capital is the capital to finance a new firm.
Verifiable objectives an objective is verifiable if, at some target date in the future, a person can look back with certainty and determine whether it has been accomplished; goals or objectives may be verifiable either if expressed quantitatively (i.e. in numbers) or qualitatively (a program of certain specific characteristics to be put into effect by certain date).
Vertical merger a combination of firms which operate in different levels or stages of the same industry; i.e. a toy manufacturer merges with a chain of toy stores (forward integration); an auto manufacturer merges with a tire company (backward integration).
Vertical spread the simultaneous purchase and sale of two options that differ only in their exercise price.
Vestingemployee’s entitlement to a part or all of a pension if he or she leaves before retirement.
Voting plana poison pill antitakeover defense plan which issues voting preferred stock to target firm shareholders. At a trigger point, preferred stockholders (other than the bidder for the target) become entitled to super voting privileges, making it difficult for the bidder to obtain voting control.
Voting trusta device by means of which shareholders retain cash flow rights to their shares while giving the right to vote those shares to another entity.
