A shorthand description for the US financial community, generally. The term comes from a street in lower Manhattan, New York, on which the American and New York Stock Exchanges, together with many financial professionals, are located.
Warrant
Another word for an option to purchase a security. The term is generally used for options that are transferable and are sold to outside investors (as distinct from officers, employees, etc.).
Warranty
Statements, usually contained in a share subscription or purchase agreement, as to the existing condition of the company which, if not true, support a legal action for compensation by way of money damages.
The schedule that determines distribution of interest and principal proceeds to cash flow CDO tranches taking into account collateral coverage tests.
Weighted Average Cost of Capital
Weighted average cost of capital is a discount rate used in valuation model reflecting the opportunity cost of all capital providers, weighted by their relative contribution to the company’s total capital.
Window
A short period in which an opportunity is available. Often referred to as a ‘window of opportunity.’
Write-down
A reduction in the value of an investment.
Write-off
The write-down of a portfolio company’s value to zero. The value of the investment is eliminated and the return to investors is zero or negative.
Write-up
An increase in the value of an investment. An upward adjustment of an asset’s value for accounting and reporting purposes.
