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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.
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Undercapitalized: A situation in
which a business does not have the
necessary funds to transact normal
business. |
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Undervalued: When a share is
trading at a price lower than its
market value. |
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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.
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| 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 |
