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| UGMA / UTMA: Uniform Gifts to Minors
Act and Unifor Transfer to Minors Act. A way of
giving children money without giving them control
of it until they are adults. If the child earns
less than $700 a year, there is no tax. The money
can be used for anything that benefits the child
except things that are a parent’s basic
responsibility such as food or clothing. |
| Undercapitalized: A situation in which
a business does not have the necessary funds to
transact normal business. |
| Undervalued: When a share is trading at
a price lower than its market value. |
| Underwrite: The process of purchasing
securities from the issuer in order to sell them
back to the public. The underwriting firm is an
investment banker who assumes the risk of bringing
a new securities issue to market. The underwriter
will buy the issue from the issuer and guarantee
sale of a certain number of shares to investors;
this is firm-commitment underwriting. To spread
the risk of purchasing the issue, the underwriter
often will form a syndicate (underwriting group,
purchase group) among other investment firms. |
| Unfriendly Takeover: The acquisition of
a business under protest from the current managers
and/ or owners. |
| Unsecured Creditor: A person or
business that is owed money, with no collateral.
They credit was extended solely on the belief of
the debtor’s future ability to repay. |
| Unrealized Loss: A loss that has
occurred on paper through a drop in price but
which has not yet been realized because the
security has not yet been sold. |
| Uptick: A transaction executed at a
price higher than the preceding transaction in
that security. |
| U.S. Treasuries: Bill: short-term
(3,6,12 months) obligation, sold at a discount
Bond: long term, 5 to 25 years Note: 1 to 5 years,
interest is paid by coupon |
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