Investing glossary
Plain-language definitions of the investing terms you meet in filings, in the news and in Finzer.
10 terms, all of them on this page
V
Valuation
Valuation is the process of estimating what an asset is worth based on its cash flows, risk, and growth expectations. Learn how investors value stocks, why prices diverge from value, and how to use valuation without falling into traps.
Valuation Multiple
A valuation multiple compares a company’s market value to a key financial metric like earnings, sales, or cash flow. Learn how investors use multiples to judge whether a stock is cheap, expensive, or fairly priced.
Value at Risk (VaR)
Value at Risk (VaR) estimates the maximum loss a portfolio could face over a given time period at a specific confidence level. Learn how VaR works, where it fails, and how investors actually use it.
Value Investing
Value investing is an investment strategy focused on buying stocks trading at least 20-30% below their estimated intrinsic value. Learn how it works, why it outperforms over full cycles, and how to apply it without falling into value traps.
Value Stock
A value stock is a company trading at a price meaningfully below its fundamental worth, often reflected in low valuation ratios like P/E or P/B. Learn how value stocks emerge, how professionals analyze them, and how to invest without falling into value traps.
Value Trap
A value trap is a stock that looks cheap based on valuation metrics but keeps underperforming because its business is structurally broken. Learn how to spot value traps, why investors fall into them, and what to do instead.
Variance
Variance measures how widely returns fluctuate around their average, expressed as the average of squared deviations. Learn how investors use variance to assess risk, compare assets, and make smarter portfolio decisions.
Velocity of money
Velocity of money measures how often each dollar in the economy is spent in a given period, calculated as nominal GDP divided by the money supply. Learn how it signals economic momentum, inflation risk, and market cycles.
Venture Capital
Venture capital is equity financing provided to early-stage, high-growth companies in exchange for ownership, often before they are profitable. Learn how VC works, why it matters to public-market investors, and how to think about it intelligently.
Volatility
Volatility measures how much and how fast prices move, typically expressed as the standard deviation of returns over a set period. Learn what drives volatility, how to interpret it, and how smart investors use it to manage risk and opportunity.