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Financial dictionary terms starting with “u”
The U.S. Agency for International Development (USAID) is a federal agency that works to encourage foreign markets for American goods. See More.
The U.S. Bureau of Engraving and Printing creates and produces U.S. paper currency. It does not produce coins -- that's the job of the United States Mint. See More.
The U. S. Department of Housing and Urban Development (HUD) is a federal agency dedicated to strengthening and supporting the housing market. See More.
The United States Department of the Treasury protects and manages many American economic and financial systems. The Secretary of the Treasury is the Chief Financial Officer of the U.S. government and is the President's main economic advisor. See More.
The U.S. House Financial Services Committee is a group of 60 Congressional representatives that make decisions regarding the economy, the banking system, housing, insurance, securities rules and financial markets. See More.
The U.S. League of Savings Institutions was a national organization of savings banks. See More.
U.S. savings bonds are bonds sold by the U.S. Treasury. The U.S. Treasury has issued many different series of savings bonds over the years, but only I Bonds and EE Bonds are available for purchase today. See More.
A UCC-1 statement is a written list and description of assets that serve as collateral for a loan. See More.
An ultimate mortality table lists the probabilities of death for people of different ages and gender. See More.
Ultrafast trading, also called high-frequency trading, is a method of trading with software that places trades in fractions of a second. See More.
Umberto Agnelli was a well-known chairman of Italian automaker Fiat -- the famous maker of the Fiat and the Ferrari. See More.
An umbrella insurance policy is an insurance policy that covers claims beyond what traditional property and/or liability insurance covers. See More.
An umbrella personal liability policy is an insurance policy that covers claims beyond what traditional property and/or liability insurance covers. See More.
Unannualized refers to a rate of return or other measure for a period that is not one year. See More.
Unappropriated retained earnings are profits that are not set aside for a specific purpose. See More.
An unaudited opinion is a written statement describing an auditor’s expectations about the outcome of its audit before the audit occurs See More.
A person is unbanked when he or she does not participate in the banking system and relies on the use of cash rather than checks or credit cards. See More.
In the stock world, unchanged means that the closing quote at the end of a trading day for a particular stock is the same as the closing price for the stock the day before. See More.
Uncle Sam is a fictional character who represents the United States government. His predecessor was a character named Brother Jonathan. See More.
Uncollected funds refer to the balance of uncleared checks in a bank account. See More.
An uncommitted facility is a borrowing agreement that allows the lender to determine how much it will lend to the borrower at a given time. See More.
Unconditional probability refers to the chance that a particular event will occur without regard to external circumstances. See More.
Unconventional oil is crude oil produced by means other than a conventional oil well. See More.
Also known as “being naked,” an uncovered option is the sale of an option involving securities the seller does not own. It is the opposite of a covered option. See More.
A person is underbanked when he or she does not participate in the banking system very much and instead relies on the use of cash rather than checks or credit cards. In the securities world, underbanked can also mean that the underwriter of a se See More.
Undercapitalization occurs when a company does not have enough cash to conduct its operations. See More.
Underemployment occurs when one does not have a job that is full-time or that reflects his or her training and financial needs. It is not the same as unemployment, which is the percentage of employable people in a country’s workforce who are ov See More.
Underinsured motorist coverage protects drivers from other drivers who do not carry any or enough auto insurance. See More.
The term underperform refers to an analyst recommendation that a stock is expected to do slightly worse than the overall market return. See More.
Underpricing occurs in the finance world when a company prices its shares too low in an initial public offering. See More.
In the securities industry, undersubscribed means that an offering does not have enough buyers. See More.
Undervalued describes a security for which the market price is considered too low for its fundamentals. Some metrics used to evaluate whether a security is undervalued are P/E ratio, growth potential, balance sheet health, etc. It is the opposite of See More.
In the real estate world, underwater means that a property is worth less than what is owed on it. See More.
An underwater mortgage is a mortgage on a property that is worth less than what is owed on it. See More.
In the securities industry an underwriter is a company, usually an investment bank, that helps companies introduce their new securities to the market. In the insurance business, an underwriter is a company liable for insured losses in return See More.
Underwriting is the process that a lender or other financial service uses to assess the creditworthiness or risk of a potential customer. Underwriting also refers to an investment banker's process of packaging and selling a security on beha See More.
In the securities industry, underwriting fees are the fees earned by an investment bank to help bring a company public or to conduct some other offering. In the mortgage business, an underwriting fee is often a fee charged by a mortgage lender for p See More.
Undue influence occurs when one party to a transaction is able to influence the decisions of another party to the transaction. See More.
Unearned income is an IRS term for income that is not obtained by participating in a business or trade (e.g., salaries and bonuses, wages, commissions and tips). It typically includes interest, dividends, pensions, social security, unemployment benef See More.
Unemployment occurs when one does not have a job. In the financial world, the term is often short for unemployment rate, which is the percentage of employable people in a country’s workforce who are over the age of 16 and actively seeking work. See More.
The unemployment rate measures the percentage of employable people in a country's workforce who are over the age of 16 and who have either lost their jobs or have unsuccessfully sought jobs in the last month and are still actively seeking work. Th See More.
An encumbrance is a limitation on the ownership of a property. When an asset is unencumbered, there are no limitations on its ownership. See More.
The Uniform Gifts to Minors Act (UGMA) is a set of rules under which adults can give money to a minor via a custodial account in the minor's name. In some states, the UGMA has been superseded by the Uniform Transfers to Minors Act (UTMA). See More.
An uninsured certificate of deposit (CD) is a certificate of deposit that is not covered by depositor’s insurance. Certificates of deposit (CD) are insured up to the maximum allowable amounts by either the Federal Deposit Insurance Corporation ( See More.
Unit cost is a measure of a company's cost to build or create one unit of product. See More.
A unit investment trust is a type of investment fund comprising a fixed portfolio of securities that is sold in units to potential investors similar to a mutual fund. See More.
A unitholder is an investor who owns the securities of a trust, like a real estate investment trust (REIT) or a master limited partnership (MLP). The securities issued by trusts and MLPs are called units, and investors in units are called unitholders See More.
Universal banking refers to the practice of offering clients retail banking as well as investment services. See More.
Universal life insurance is a type of life insurance policy that allows the policyholder to alter the policy in response to life changes, by merging the benefits of term life insurance with those of a savings account. See More.
An unqualified opinion is a written notice from an auditor stating that a company has complied with generally accepted accounting principles (GAAP). See More.
Unrealized gain is increases in the value of an asset that has not been sold. This concept is often called paper profit. See More.
An unrealized loss is a paper loss from holding an asset that has lost value but has not yet been sold. See More.
Unrelated business taxable income (UBTI) is the tax placed on the income derived from unrelated business activities of an otherwise tax-exempt entity. See More.
In the finance world, a lender or piece of debt is unsecured if it does not have collateral. See More.
An unsecured creditor is a lender or any entity to which a company or individual owes money for services provided. That creditor, however, does not have any collateral from the borrower. See More.
In the finance world, an unsecured note is corporate debt that does not have any collateral attached. Unsecured notes are not the same as debentures, which are also unsecured corporate debt (but debentures usually have insurance policies that pay out See More.
An Unsponsored American Depository Receipt (ADR), though backed by the common stock of an offshore company, is not directly sanctioned by that company and renders the holder un-entitled to the shareholder benefits that come with a sponsored ADR. See More.
Unsubordinated debt refers to loans and debt securities (e.g., bonds, CDs, collateralized securities, etc.) for which the repayment priority outranks other debts owed by the same individual entity (called subordinated debt). See More.
The term unsubscribed describes the portion of the shares in an IPO that are not sold prior to the IPO. See More.
An unweighted index has components that are not adjusted to reflect importance or certain characteristics. See More.
Also called dark pools, upstairs trading refers to trading activity that occurs directly between parties without the use of an exchange, thereby keeping the transaction private. See More.
Upthrusts are false breakouts that can trap the unsuspecting trader. Upthrust patterns quickly reverse, with the stock or index then often testing the opposite end of the trading range. See More.
Uptick refers to the increase in the market price of a security over the preceding transaction. See More.
Known as Rule 10(a)(1) of the Securities Exchange Act of 1934, the uptick rule allows investors to short a security only at a price higher than the security's last trade. See More.
Uptick volume is the number of shares of a particular stock that trades when the price is increasing. See More.
A useful life is the number of years in which an asset can reliably produce benefits. See More.
Usury is lending money at an interest rate thought to be irrationally high or higher than permitted by law. Usury is another word for predatory lending, which is the act of imposing unfair and abusive loan terms on borrowers. Predatory lende See More.