Welcome to Firstrade's stock trading terms glossary. Do all the research you want. Use this glossary to look up the definition of any financial term.
- W -
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.
Educational Videos
02:59
04:28