MARKET STRUCTURE DICTIONARY

W.I .   An abbreviation of when issued.

wake me up  A customer request meaning "contact me" if and when the market meets certain conditions.  For example, XYZ, wake up at the $50.20 level.  I may have more to do.

walk away  Discontinue trading in a particular stock for a period of time.  For example, XYZ, let's walk a way for a while, see if the stock comes in some.

Wall Street  1.  A general term for the securities industry in the United States.  2.  A street in lower Manhattan.  The area around Wall Street has historically been the home of most of the major stock exchanges in the United States.  It has also been the central hub of the U.S. professional trading community for generations.  Named for the wall that was first erected as a barricade in 1644 by Willem Kieft, the Director-General of New Netherland, and subsequently upgraded in 1653 by Peter Stuyvensant, his successor.  At the time, the wall marked the northern limits of the New Amsterdam settlement.  The wall itself was pulled down in 1698, but the area around the wall became a thriving commercial and political center as well as a fashionable address during the 18^th century.  The MERCHANT’S COFFEE HOUSE was located in the area, and the BUTTONWOOD AGREEMENT was signed nearby.  The NEW YORK STOCK EXCHANGE has always called the area home.

Wall Street circa 1789

Photo Credit:  New York Public Library

Wall Street Crash of 1929  The most exceptional destruction of stock market value in the history of the United States.  To many historians, it signaled the end of the Roaring '20 and ushered in the Great Depression.  For details, see BLACK THURSDAY, BLACK MONDAY, and BLACK TUESDAY.

Crowd gathers outside of the New York Stock Exchange after the Crash of 1929

Photo Credit:  Library of Congress

wallflower  A slang term for a stock that has fallen out of favor.

wallpaper  A slang term for a worthless stock, as in Well, if nothing else, my XYZ shares will make good wallpaper for the kids’ room.

wanted for cash  A bid posted for a block of stock that stipulates cash settlement. 

warrant  A derivative security that gives the owner the right to purchase a specific amount of stock from the issuer at a specific price by a specified date. 

wash  A situation in which the outcomes of two actions cancel each other out.

wash sale  The illegal operation of simultaneously buying and selling the same stock in order to create the illusion of volume.  See also MATCHING ORDERS.

washed out market  A market in which existing long positions have been thoroughly liquidated following a period of steady and aggressive selling.  Implies that a price recovery is due.  For example, I know there's probably a little more bad news to come in XYZ, but the stock looks pretty washed out already.  I think I'm going to start dabbling in the name.

washing  See WASH SALE.

Washington (D.C.) Stock Exchange  A regional stock exchange located in Washington D.C.  Merged with the Philadelphia Stock Exchange in 1953.

watching  Describes the action of a customer who has previously traded, or indicated a trading interest, in a particular stock but does not wish to participate at the moment.  For example, ZVZZT, I'm just watching for now.  Wake me up at the $25 level.

water  See TRADES LIKE WATER. 

watered stock  Industry slang to describe the stock of a company that issues new shares without simultaneously increasing paid in capital or officially splitting the stock.  Dilutive to current shareholders.  A not uncommon practice in the 19^th century.  The term is likely derived from the practice of ranchers who would feed their cattle large amounts of water before bringing them to market, thus making them (temporarily) heavier. 

We the People  An historic slang term for Merrill Lynch.

weak hands  Industry jargon for traders and speculators who are long of stock but looking for quick profits. 

weak longs  Owners of shares who are more focused on short term speculation than on long term investment.

weak market  A market in which selling interest outweighs buying interest leading to lower prices, as in The market was decidedly weak following the release of the disappointing jobs numbers.

weakness  The extent to which sellers outnumber buyers, as in I expect to see some weakness in the market this morning given the unexpectedly poor GDP numbers.

week order  An abbreviation of good this week order.

whack the bids  Trader lingo meaning hit the bids very aggressively.  For example, Look, I need to sell some stock.  Go out and whack the bids until we flush out a real buyer.

what's XYZ?  Trader lingo meaning "what is your quote in XYZ?"

when issued (W.I.) trade  A trade that is conditional on stock that has been authorized by the corporation but not yet issued.

when, as, and if issued trade  See when issued trade.

whipsawed  Sustained back-to-back losses in a particular stock, first from the long side and then from the short side (or vice versa).  For example, I just got completely whipsawed in ZVZZT.  I am not touching that stock again for a while.

whisper number  An unofficial and unpublished earnings estimate.

whisper stock  Shares of a company trading on takeover rumors.

white elephant  Industry slang for an investment that is unprofitable and likely to remain unprofitable.  For example, You should just dump that white elephant while you can and move on to something more interesting.

White Sheets  Historically, a bulletin published daily by the National Quotation Bureau that provided a list of market makers and their respective quotes for over-the-counter securities traded in Los Angeles, California, San Francisco, California, and Chicago, Illinois.  See also PINK SHEETS.

white shoe firm  A broker/dealer that refuses to engage in any activities related to hostile takeovers.

who are you?  Trader's lingo meaning "which customer do you represent?"  For example, I've got a guy checking us in ZVZZT.  Are we real on the buy side? --- Who are you?  See also WHO'S ASKING.

wholesale market maker  A broker/dealer with a customer base composed primarily of other broker/dealers (and institutional investors) rather than retail investors.  However, since most online brokerage firms sell their marketable order flow to wholesalers, most retail order flow is ultimately executed by wholesaler. 

wholesaler  Another term for wholesale market maker.

who's asking?  1.  Officially, "Which customer is requesting the information?"  For example, How are we making ZVZZT right now? --- Who's asking?  2.  Unofficially, "Why do you want to know?"  For example, What kind of buyer are you working in ZVZZT… fast guy or a vanilla guy? --- Who’s asking? or perhaps Hey, what are you guys up to this weekend? --- Who's asking?

wide market  A market with a relatively large spread between the best bid and the best ask.  Opposite of a CLOSE MARKET.

wide opening  A situation in which the spread between the best bid and the best ask in a particular stock is unusually large at the opening of trading.

wide prices  Describes a stock with a relatively large spread between the best bid and the best ask. 

widow and orphan stock  A stock considered to be a very safe long term investment.  For example, Sure, XYZ is a great widow and orphan stock, but why would you have the slightest interest in actually trading it?

window  The department of a broker/dealer that arranges the delivery and settlement of securities trades.

window dressing  Trading activity conducted by institutional investors solely for the purpose of improving the appearance of their portfolios' performance rather than the actual performance.  Often occurs near the end of a quarter or fiscal year.  For example, A lot of these tech stocks are starting to move higher.  No question there's a little window dressing going on.

wiped out  A slang term for the loss of all speculative capital.  For example, That XYZ trade wiped me out.  Stick a fork in me, I'm done.

wire  An abbreviation of telephone wire.  See WIRE HOUSE, WIRE ROOM, and ON THE WIRE.

wire house  A broker/dealer that maintained a large network of private telephone wires to customers and branch offices. 

Telegraph and telephone wires engulfed Lower Manhattan circa 1888

Photo Credit:  Collection of the New-York Historical Society

wire room  The department within a broker/dealer that receives and facilitates order flow from retail customers.  Also called the order room.

witching hour  See DOUBLE WITCHING HOUR, TRIPLE WHITCHING HOUR, and QUADRUPLE WITCHING HOUR.

with discretion  See DISCRETION. 

with ice  A slang term for when issued.

withdrawn  A term used to revoke a previously indicated bid or offer.  For example, ZVZZT, I'd like to sell you 25,000 at $25.50. --- Yeah, sorry that bid was withdrawn ten minutes ago.  Right now, I'll pay $25.30 for 25,000 to work larger.

without  Indicates a one sided quote, as in ZVZZT, the market is $25 bid without.

wooden ticket  Industry slang for a trade initiated by a dealer but falsely ascribed to a customer. 

work  1.  Trader's jargon to describe the set of parameters used to execute a customer order.  For example, How are we working XYZ? --- We're working in line with volume but with an ultimate $50 top.  2.  A customer instruction to participate with volume with discretion.  For example, ZVZZT, take 50,000 for sale, just work it.

work in line  Attempt to execute a customer market not held order on the best possible terms, but continue to participate with volume even in the event of unfavorable price swings.  For example, ZVZZT, buy 100,000, just work in line.  Let me know if it starts to get away from us.

working  Attempting to execute a market not held order on the best possible terms.  Usually implies that the customer wishes to participate in something considerably less than 100% of the overall volume.  For example, Right now, I'm working 50,000 XYZ for sale with an ultimate $49.50 low.

working order  An riskless market not held order.

workout market  A dealer indication or approximation of a likely market price.  Not a firm quote.  Most commonly used in reference to block trading.

would  Industry jargon meaning "willing to complete the order within the stated parameters."  For example, XYZ, would you lose all 50,000 here? --- I would.

would you?  Industry jargon meaning "are you willing to complete your order within the stated parameters?"  For example, ZVZZT, would you own all 50,000 here? --- No, I'd buy 25,000 in line, then be lower on the balance.

write a ticket  Industry jargon meaning successfully arrange a trade with a customer.  Often implies the trade was solicited by the broker/dealer.  For example, We've got good size XYZ for sale.  Why don't you call your buyer from last week, and maybe we can write a ticket.

wrong way  See GOING THE WRONG WAY.

Wunsch Auction Systems  See Arizona Stock Exchange.