Glossary

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Variable Interest Entity

Financial Term

A Variable Interest Entity (VIE) is a legal entity that is used to hold assets and/or liabilities. VIEs are often used as an ownership structure for businesses in which the ultimate controlling party is not clear. In the financial industry, VIEs are most commonly used in the context of securitization, particularly for complex assets such as mortgage-backed securities.

VIEs are structured to allow companies to achieve certain financial and legal objectives, such as off-balance sheet financing, reduced tax liability, and limited liability protection. They are typically set up as a form of special purpose entity (SPE) that is legally separate from its parent company.

In essence, VIEs allow companies to create a legal separation between assets and liabilities and the company itself, thus limiting the amount of risk that the company is exposed to. This is accomplished by granting the parent company control over the VIE*s cash flows and other financial decision-making, without actually owning it outright.

While VIEs can be beneficial for certain financial and legal purposes, they have also been subject to controversy in the past. In particular, the use of VIEs has been criticized for allowing companies to hide liabilities or obscure the true financial health of the company. Additionally, some investors have criticized the use of VIEs for allowing companies to avoid regulatory scrutiny or disclosure requirements. Despite these concerns, VIEs remain a popular tool in the financial industry for structuring complex financial transactions.

More Glossary Terms Beginning with V

Vacation Exchange and Rental Annual Rev. Per Member
1

Hotel & Leisure Term Letter: V
Vacation Exchange and Rental Members
1

Hotel & Leisure Term Letter: V
Vacation Exchange Timeshare
provides to owners of intervals flexibility with respect to vacations through vacation exchanges. To participate in a vacation exchange, an owner generally contributes intervals to an exchange company?s network and then indicates the particular resort or geographic area to which the owner would like to travel, the size of the unit desired and the period during which the owner would like to vacatio

Hotel & Leisure Term Letter: V
Vacation Ownership Tours
Represents the number of tours taken by guests in Company efforts to sell vacation ownership interests.

Hotel & Leisure Term Letter: V
Vacation Ownership Volume Per Guest
Represents revenue per guest and is calculated by dividing the gross vacation ownership interest sales, by the number of tours.

Hotel & Leisure Term Letter: V
Vacation Rental Transactions
Represents the number of transactions that are generated in connection with customers booking their vacation rental stays.

Hotel & Leisure Term Letter: V
Vaccine
A suspension of living, attenuated or killed microorganisms or genetic material administered for the prevention or treatment of infectious or hereditary diseases.

Health Care Term Letter: V
Value At Risk VaR
A measure of the dollar amount of potential loss from adverse market moves in an ordinary market environment.

Financial Term Letter: V
Variable Interest Entity
Entity defined by ASC 810, Consolidation, and that must be consolidated by its primary beneficiary. A variable interest entity has one or both of the following characteristics: (1) its equity at risk is not sufficient to permit the entity to finance its activities without additional subordinated financial support from other parties, or (2) as a group, the equity investors lack one or more of the f

Financial Term Letter: V
Vascular
arteries, veins, vessels that carry or circulate blood.

Health Care Term Letter: V
Vascular Access
Vascular Access is the means of entering the vasculature percutaneously in order to place a variety of catheters. Vascular Access can be either venous or arterial in nature and can occur at various points of the body. The most typical vascular access points are femoral (groin), subclavian (upper chest), internal and external jugular (neck), brachial and radial (arm).

Health Care Term Letter: V
Vasoactivity
Affecting blood vessels especially in respect to the degree of their relaxation or contraction.

Health Care Term Letter: V

More in this Category

Acquired Fund Fees and Expenses
fees and expenses charged by other investment companies in which the Fund invests a portion of its assets.

Financial Term
Acquisition
A business acquisition. The acquiring company records at its cost the acquired assets less liabilities assumed. The reported income of an acquiring company includes the operations of the acquired company from the date of acquisition.

Financial Term
Acquisition Proposal
means any merger, amalgamation, take-over bid, tender offer, arrangement, recapitalization, liquidation, dissolution, share exchange, material sale of assets (or any lease, long term supply agreement or other arrangement having the same economic effect as a material sale of assets) representing greater than 20% of the fair market value of the Arrangement, any sale of more than 20% of any class of

Financial Term
Adjusted Average Cardmember Loans
Represents average cardmember loans on an owned or managed basis, as applicable, excluding the impact of deferred card fees, net of deferred direct acquisition costs of cardmember loans on an owned or managed basis, as applicable.

Financial Term
ADR American Depositary Receipt
represents ownership in the shares of a non-U.S. company that trades in U.S. financial markets. ADRs enable U.S. investors to buy shares in foreign companies without the inconveniences of cross-border & cross-currency transactions. ADRs carry prices in US dollars, pay dividends in US dollars, and can be traded like the shares of US-based companies.

Financial Term
ADS American Depositary Share
represents ownership in the shares of a non-U.S. company that trades in U.S. financial markets. American Depositary Share representing one underlying Ordinary Share. ADS enable U.S. investors to buy shares in foreign companies without the inconveniences of cross-border & cross-currency transactions. ADS carry prices in US dollars, pay dividends in US dollars, and can be traded like the shares of U

Financial Term
Advised Lines of Credit
An authorization which specifies the maximum amount of a credit facility the Firm has made available to an obligor on a revolving but non-binding basis. The borrower receives written or oral advice of this facility. The Firm may cancel this facility at any time.

Financial Term
AICPA
American Institute of Certified Public Accountants

Financial Term
Allowance For Credit Losses
includes the allowance for loan and lease losses and the reserve for unfunded lending commitments, represents managements estimate of probable losses inherent in the Corporations lending activities. The allowance for loan and lease losses and the reserve for unfunded lending commitments exclude amounts for loans and unfunded lending commitments accounted for under the fair value option as the fair

Financial Term
Allowance For Loan and Lease Losses
The allowance for loan and lease losses represents the estimated probable credit losses in funded consumer and commercial loans and leases while the reserve for unfunded lending commitments, including standby letters of credit (SBLCs) and binding unfunded loan commitments, represents estimated probable credit losses on these unfunded credit instruments based on utilization assumptions. Credit expo

Financial Term
Alt-A Mortgage Loans
Alt-A loans are generally higher in credit quality than subprime loans but have characteristics that would disqualify the borrower from a traditional prime loan. Alt-A lending characteristics may include one or more of the following: (I) limited documentation; (II) high combined-loan-to-value ("CLTV") ratio; (III) loans secured by non-owner occupied properties; or (IV) debt-to-income ratio above n

Financial Term
Amortization
A charge against the companys earnings that represents the write off of intangible assets over the projected life of the assets. Cash Flow

Financial Term