V

Valuation

The process of establishing the value of a business's stock by taking both earnings and the market value of assets into account. 

Value broker

A value broker is a discount broker who keeps a certain percentage of every transaction's total value as his or her earnings.

Value-added tax

In terms of South African taxation, value-added tax (VAT) is levied when goods or services are resold or provided at a profit in terms of the Value-Added Tax Act. 

Variable cost

This type of cost corresponds directly to the level of output. In other words, if nothing is produced, the variable cost will be zero. 

Variable interest rate

A variable-interest-rate loan features an interest rate that is linked to the prime rate, ie when the prime interest rate is increased, the interest charged on the outstanding loan amount will also be increased. If the prime rate drops, the amount of interest charged on the loan will decrease accordingly. 

Vertical acquisition

This happens when one business purchases or takes over another business in the same industry, but the two respective businesses are not involved in the same part of the production process. 

W

Waiver of premium

This refers to a term in an insurance policy contract that stops insurance premiums either temporarily or permanently if the policyholder becomes incapacitated. 

WAP 1.0

Wireless Application Protocol Version 1.0 and Version 2.0

WAP is designed to provide users of mobile devices with access to the Internet. It assists in displaying Internet pages appropriately on the screen of your phones. The Nedbank Cellphone channel uses WAP2.0 and is therefore the recommended version.

Weak market

A weak market is characterised by many sellers, few buyers and decreasing prices. 

Will

A will is an official, legal document containing instructions as to how a person would like his or her estate to be distributed when he or she dies. A person will usually nominate an executor to handle the will. Many people opt to choose a relative, yet it is advisable that individuals with complex estates (ie multiple properties, bonds and other assets) nominate a professional executor, such as a broker or their financial or asset management institution. 

Windfall profit

This is a sudden profit that did not stem from any conscious effort by the profiting person. 

Wraparound mortgage

This is when a homeowner takes out a second mortgage while the first is still in effect. The wraparound mortgage serves as collateral for the homeowner's total debt. 

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