U A NASDAQ stock symbol specifying that the issue is in units.
U.S. Treasury The United States Department of the Treasury is the government department responsible for issuing all Treasury bonds, notes, and bills.
UAH In currencies, this is the abbreviation for the Ukraine Hryvnia.
UGS In currencies, this is the abbreviation for the Uganda Shilling.
Unadjusted Basis A basis used for depreciation purposes. Unadjusted basis uses the original cost of property or equipment without regard to salvage value.
Unbundling The process of taking over a large company with several different lines of business, and then, while retaining the core business, selling off the subsidiaries to help fund the takeover.
Uncommitted Facility A credit facility with no restrictions placed upon the lending institution regarding the amount of funds to be lent.
Under Reporting An illegal practice where a person understates their taxable income.
Underlying 1. In derivatives, the security that must be delivered if the contract is exercised.
2. In equities, the common stock that underlies certain types of securities such as warrants and convertible bonds.
Underpayment Penalty A tax penalty enacted on an individual for not paying enough of his or her total estimated tax and withholding. If an individual has an underpayment of estimated tax, they may be required to pay a penalty (on Form 2210).
Underperform An analyst recommendation that means a stock is expected to do slightly worse than the market return.
Undersubscribed When the demand for a new issue of securities (IPO) is less than the number of shares issued. This is sometimes referred to as an underbooking.
Undertakings for the Collective Investment of Transferable Securities - UCITS A public limited company that coordinates the distribution and management of unit trusts amongst countries within the European Union.
Undervalued A stock or other security that is trading below its true value.
Underwater 1. The condition a call option is in when its strike price is higher than the market price of the underlying stock.
2. The condition a put option is in when its strike price is lower than the market price of the underlying stock.
Also known as "out of the money."
Underweight An situation where a portfolio does not hold a sufficient amount of securities to satisfy the accepted benchmark of the portfolio's asset allocation strategy.
Underwriting 1. The process by which investment bankers raise investment capital from investors on behalf of corporations and governments that are issuing securities (both equity and debt).
2. The process of issuing insurance policies.
Underwriting Spread The spread between the amount underwriters pay an issuing company for its securities and the amount the underwriters receive from selling the securities in the public offering.
Unearned Income Any income that comes from investments and other sources unrelated to employment services.
Unearned Revenue When an individual or company receives money for a service or product that has yet to be fulfilled.
Unemployment Rate The percentage of the total labor force that is unemployed but actively seeking employment and willing to work.
Unencumbered Property that is not subject to any creditor claims or liens.
Uniform Gifts to Minors Act - UGMA An act that allows a donor to contribute to a minor's custodial account without having to appoint a legal guardian or involve an attorney to form a trust account.
Uniform Transfers to Minors Act - UTMA An extension to the Uniform Gifts to Minors Act that allows items other than cash or securities to be considered gifts.
Unissued Stock When a corporation possesses authorized common and preferred shares, but never actually exchanges them for money or services.
Unit Benefit Formula A method of calculating an employer's contribution to an employee's defined benefit plan. The employer calculates the contribution by multiplying an employee's years of service by a percentage of his or her salary.
Unit Investment Trust - UIT A registered trust in which a fixed portfolio of income-producing securities are purchased and held to maturity. Commonly used with municipal bonds, investors receive an undivided interest of the portfolio's principal as well as income proportionate to the amount they invested.
Unit Trust - UT An unincorporated mutual fund structure that allows funds to hold assets and pass through profits to the individual owners, rather than reinvest profits back into the fund.
Universal Banking Banking that includes investment services in addition to services related to savings and loans.
Universal Market Integrity Rules - UMIR A set of rules in Canada which govern trading practices. UMIR were established to promote fair, equitable and efficient markets.
Unlimited Risk The risk of an investment that has unlimited downside potential.
Unlisted Security A security that is not traded on an exchange, usually because of an inability to meet listing requirements.
Unlisted Trading Privileges Rights granting an exchange to trade an unlisted security.
Unparted Bullion Precious metal bullion that contains other metals in it.
Unrealized Gain A profit that results from holding on to an asset rather than cashing it in and using the funds.
Unrealized Loss A loss that results from holding on to an asset rather than cashing it in and officially taking the loss.
Unrelated Business Taxable Income - UBTI Income regularly generated by a tax-exempt entity by means of taxable activities. This income is not related to the main function of the entity, but is needed to generate a small portion of income.
Unseasoned Security A stock that has just recently started trading. This type of security does not have an established pattern under various market conditions.
Unsecured Creditor A person or institution that lends money to a company or individual without holding collateral on the property for security. This puts the creditor in a higher risk situation.
Unsecured Loan A bank loan that is issued and supported only by the borrowers creditworthiness, rather than by some sort of collateral.
Unsponsored American Depository Receipt (ADR) An ADR that is issued without the involvement of the foreign company whose stock underlies the ADR. Shareholder benefits, voting rights, and other attached rights may not being extended to the holders of these particular securities.
Upstairs Trade When a trade in a listed stock is not executed through the listing exchange.
Upstream Refers to oil and gas exploration and production.
Uptick A transaction occurring at price above its previous transaction. In order for an uptick to occur, a transaction price must be followed by an increased transaction price. This is commonly used in reference to stocks, but it can also be extended to commodities and other forms of securities.
Uptick Volume The volume of a security that trades at a price higher than its previous price.
USD In currencies, this is the abbreviation for the U.S. Dollar.
Useful Life The number of years, as set by the IRS, that depreciable business equipment or property is expected to be in use.
Usufruct A legal term describing a situation wherein a person or company has a temporary right to use and derive income from someone else's property (provided that it isn't damaged).
Usury The act of lending money at an interest rate higher than that permitted by law.
Utility 1. An economic term referring to the total satisfaction received from consuming a good or service.
2. A company that generates, transmits and/or distributes electricity, water and/or gas from facilities that it owns and/or operates.
UYP In currencies, this is the abbreviation for the Uruguayan Peso.