Investment Glossary

Warrant

A security which entitles the purchase of a specific amount of common stock at a specific price. Most warrants expire after a certain date, but some never expire.

Wash-Sale Rule

The rule enforced by the IRS to prevent taxpayers from selling securities at a loss and reacquiring near identical securities within a 30-day period before or after a loss. A violation of the rule will void the loss from the sale of the security.

Weighted-Average Maturity

The arithmetic mean of maturities of securities held by a mutual fund.

White Knight

A company that rescues another in financial trouble, preventing a takeover by a hostile bid.

Withdrawal Plan

A plan to automatically redeem mutual fund holdings and have proceeds mailed directly to the investor.

Workout Quote

A price which the trader believes a security can be bought or sold if given time to find a market.

World Bond Funds

Funds that invest in the bonds of U.S. and foreign governments.

World Stock Funds

Funds that invest in the stocks of U.S. and foreign companies.

Worst 3-Month Return

The fund's worst three-month return measured in rolling periods over the past five year.

Writer

The seller of an option contract.

W-Type Bottom

Two consecutive bottom shapes on a price or indicator chart, resembling the alphabet W.