Archives: Terms

Definition of Wold’s Decomposition Theorem Wold’s Decomposition Theorem is a fundamental concept in the field of time series analysis. It states that any stationary time series can be decomposed into two uncorrelated components: a deterministic part (often represented by a linear combination of lagged variables) and a stochastic part (a […]

Definition of Withholding Tax Withholding tax refers to the portion of an employee’s wages that is not given directly to them but is instead sent to the federal, state, or local tax authorities. This system ensures that employees pay their tax liabilities on their income as they earn it, rather […]

Definition of With-Profits Life Insurance With-profits life insurance is a type of life insurance policy where the policyholder is entitled to a portion of the profits generated by the insurance company’s investments. Unlike a standard life insurance policy, which pays out a fixed sum, a with-profits policy provides a share […]

Definition of Wirtschaftswunder Wirtschaftswunder, a German term meaning “economic miracle,” refers to the rapid reconstruction and development of the economies of West Germany and Austria after World War II. This unprecedented economic boom took place during the 1950s and early 1960s, characterized by rapid industrial growth, low unemployment rates, and […]

Definition of Winner’s Curse Winner’s Curse is a phenomenon that occurs in common value auctions, where the winning bidder tends to overpay for an item. This overpayment happens because the winner’s bid reflects a higher estimate of the item’s value than what it might actually be worth. The “curse” is […]

Definition of Windfall Gain A windfall gain refers to any unexpected financial gain received by an individual or a corporation. This can occur due to various reasons such as sudden changes in the market, inheritance, winning a lottery, or receiving a large sum from an unplanned source. Windfall gains are […]

Definition of Wildcat Strike A wildcat strike is a spontaneous, unapproved work stoppage undertaken by employees without the consent or authorization of their unions. These strikes are characterized by their sudden onset without following the formal procedures outlined in labor contracts or laws. Because wildcat strikes bypass collective bargaining agreements, […]

Definition of Wholesale Prices Wholesale prices refer to the cost charged for goods when bought in bulk by retailers or distributors directly from manufacturers. These prices are typically lower than retail prices because they exclude the costs associated with the final sale to consumers, such as marketing, storefront maintenance, and […]

Definition of Wholesale Banking Wholesale banking refers to the range of financial services provided by banks to large organizations, such as corporations, government agencies, financial institutions, and other banking operations. Unlike retail banking, which caters to individual consumers and small businesses, wholesale banking focuses on high-value transactions and advanced financial […]

Definition of White Knight A White Knight is defined as a company or individual that comes to the rescue of a target company facing a hostile takeover. The white knight offers a friendly acquisition alternative, which is typically more favorable to the target company’s management, shareholders, and overall business strategy. […]