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Glossary
V to Z

V

Value Stock   A value stock has an attractive stock price relative to the value of its assets. Typically, value stocks pay dividends and have growth prospects that are similar to that of the whole economy.
Vesting   The process of achieving ownership of the company's contribution in the 401(k) plan. In some plans, you become vested in a progressively greater percentage of the company's contribution in each passing year. In other plans, you become fully vested after a set number of years.
Volatility   The measurement of how a particular security's price moves up and down over time. One statistical measurement of volatility is standard deviation. Volatility is usually considered the same as risk.
     

W

Withdrawals   Removing funds from your 401(k) plan.
     

Y

Yield   For fixed income securities, the amount of the cash payment (interest) divided by the value of the investment. The yield is stated as a percent of the investment's total value.


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