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

Category: W

WEIGHT THRESHOLD

Cargo weight where a standard rate of freight begins to decline. Also known as weight break.

WHARF

Area providing protection for a berthing space for sea going vessels. See jetty and quay.

WITH PARTIAL RECOURSE

Legal term. Seller has the responsibility to reimburse the buyer an agreed upon part of the overall loss from the non-performing asset.

WORK LETTER

Statement from landlord to tenant defang items included in the property when rented.

WRITING DOWN ALLOWANCE (WDA)

Capital allowance where costs of acquired assets in the present year as added to a written down value of assets from the previous year.

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.

WEATHER BOND

When weather risks cause securitization. These risks can be temperature or percipitation. This is not the result of a catastrophe. Repayment stops when loss causing weather damages crops. Refer to catastrophe bond,

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