Link Market Services: Glossary: V - Z

V

Valuation Price

The valuation price available from the ASX's data service signal E is calculated as follows:

1. Price Traded Stocks
   If there was a trade on the previous day then the LAST price adjusted by either a higher BID price or a lower ASK price is used to create the valuation price.  If there were no trades on the previous day then yesterday’s VALUATION price, adjusted by a higher BID price or a lower ASK price, becomes the new VALUATION price
   
2. Yield Traded Stocks
   The VALUATION YIELD is converted to a price using a formula that takes into account maturity date, interest rate, interest payment date, interest payments per year and basis of quotation.
   The value of interest accrued since the last interest payment date is calculated and subtracted from the converted price giving the VALUATION PRICE.

Vendor

Defined in the ASX Listing Rules as a person to whom restricted securities are issued.

Vendor Shares

Shares issued by an Issuer as consideration for the acquisition of an asset, usually at the time of a float. There are usually restrictions on trading these shares immediately after a public issue.

Voting Direction Form

Similar to a proxy form, however, holder can only nominate the Nominee as their proxy.

Voting Exclusion Statement

A statement referred to in ASX Listing Rule 14.11 where a director excludes themselves from voting if they have a conflict of interest or stand to benefit from a resolution. For example, a director would be excluded from voting on their re-election to the board of directors.

Voting Instruction Form

A voting instruction form is used when the holder directs a trustee/nominee on how to vote for their shares.

W

Warrant

A certificate that gives the Investor the option to purchase shares at a fixed price before a specified date or in some cases indefinitely (endowment warrants).  Warrants are sometimes attached to other securities as an added purchase incentive and may be traded separately after issue.

Warrant Code

All warrants quoted on ASX have a six-letter code: The first three letters of the code identify the underlying security. For most equity warrants this is the same as the three-letter ASX code of the underlying company shares.

In some cases the first three characters may represent a basket of stocks. The fourth letter of the code identifies the type of warrant. The fifth letter identifies the warrant issuer. The sixth letter is a sequential code.

Warrant Holder

The holder of a warrant. See also WarrantWarrant Issuer As set out in the ASX Business Rules, a warrant issuer is an institution that issues the warrant and meets the eligibility criteria.

Warrant Series

Each warrant series has a separate warrante code. A waarant series is where warrants with the same terms of issue and underlying asset have the same warrant issuer, exercise price, expiry date (see expiry, expiry date, expiration) and settlement procedure.

Warrants

A derivative security that gives the holder the right to purchase securities (usually equity) from the issuer at a specific price within a certain time frame. Warrants are often included in a new debt issue as a "sweetener" to entice investors.

Weighted Average

When an Issuer is setting a price on a share, they will take the average share price for a pre-determined number of days.

Will

A document which sets out how an individual wants his or her wealth and property to be distributed after death.

Winding Up

The ceasing of a company’s business by a liquidator.

Withholding Tax (WHT)

Australia has double taxation agreements with many other countries. This usually results in income that is earned by the residents of one country from sources in a different country being taxed only once, but at the higher of the two possible rates.

Dividend and interest payments that are made by Australian companies to overseas Investors are subject to a special deduction known as 'Withholding Tax'. This eliminates the need for overseas Investors to lodge Australian tax returns. There are two types of withholding tax;

• Non resident withholding tax is deducted from interest, dividend and royalty payments made to non-resident Investors; and
• Resident withholding tax is deducted from certain investments or payments to residents where the recipient has not provided their Tax File Number.

Withholding tax is deducted at the source by the Share Registry from the payments.

X

Y

Yield

An investments returned earnings, generally ex[ressed as a percentage.  This takes into account its current market price and annual income.

Z

Zero Brokerage

Some companies allow their shareholders to acquire newly created shares free of brokerage and stamp duty.