Your Free Online Legal Dictionary • Featuring Black’s Law Dictionary, 2nd Ed.

Category: W

WAVE

Disturbance passing through medium.

WEIGHT OR MEASUREMENT (W/M)

Way of quoting rates for freight. (1) Sea freight; per metric ton or cubic meter whichever is greater,(2) Air; per kilogram or 1 cubic foot whichever is greater.

WETTING AGENT

Material lowering a fluids surface tension so it can clean or get into another substance.

WITH DIVIDEND

Buying shares where the purchaser can expect a dividend. See with rights.

WORKGROUP

Two or more people acting like a team to achieve a common goal, may not work in same department.

WHOLE LOAN

A mortgage sold with servicing rights to an investor. They are sometimes sold to conduits for securitization purposes.

WIDOWS AND ORPHANS

An unsophisticated investor. They are protected from fraud or bad advice. Refer to aunt millie.

WAR CHEST

Cash held for the purpose of overtaking another company. Or funds held to prevent hostile takeover.

WILLINGNESS TO PERFORM

The promise to perform agreed to financial obligations. If the party feels mistreated they may choose not to. Refer to ability to perform.

WARRANT

A long term option issued as a private instrument with a bond. This lowers funding costs. Refer to exwarrant, covered warrant, and bond with warrant.

WINDOW DRESSING

Changing the appearance on financial statements to make a company look better. It is ethically questionable.

WATERED STOCK

Stock of a company whose assets are overvalued. The price does not accurately represent the companies position.

WITHOUT

When only a oneway quote is available for a security.

WEAK HANDS

A holder of a derivative contract that plans to close out before maturity. Retail investors are commonly weak hands. Refer to strong hands.

WORKING CAPITAL

The shortterm operating resources of a company. Refer to loan, gross working and net working capital.

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