The Letter W

Wallpaper-worthless securities. The implication of the term is that certificates have no use other than wallpaper. However, there may be value in the worthless certificates themselves by collectors who prize rare or historically significant certificates. The practice of collecting these certificates is called scripophily.

Warrant-this is a security that entitles the holder to buy a specific amount of stock on a particular future date at a set price, typically higher than the stock's current value. A warrant will have a ticker symbol that has a W for the fifth letter.

Wash sale-this term comes from the IRS rule that prohibits investors from claiming a tax loss on the sale of a security that is bought back within a 30 day period. This means that you can't add to your position 30 days before or buy back 30 days after and then claim a tax loss. You can adjust your cost basis on the shares you still own, so it is possible a tax loss can be taken at a latter date.

Weight-out-this term may come up with companies involved with consumer goods. Industry insiders use this term for the practice of slightly cutting the package size of a product instead of doing a price increase.

Whisper Number-this is an unpublished estimate of earnings (that are about to be reported) that is shared among wall street professionals. Many traders feel that these numbers are more accurate because analysts don't like to release official public criticism of companies. When analysts do this they can lose future business with these companies. Whisper numbers are available for only a few hundred stocks. The SEC discourages this practice of selective disclosure & this can be considered one of the main causes of the new Regulation FD. Among the websites that track these numbers are whisper numbers.com & the whisper number.com.

White Knight-friendly acquirer sought by the target of an unfriendly takeover.

Updated 6/7/05