Super Finance Glossary
Over 10,000 financial glossary terms...
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Browsing by the letter "U"
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Undermargined Account
Definition: A margin account that no longer meets minimum maintenance requirements, requiring a margin call on the investor.
Definition: A margin account that no longer meets minimum maintenance requirements, requiring a margin call on the investor.
Underperform
Definition: In general, this means to do worse than some particular benchmark. Mutual Fund XYZ is said to underperform the S&P500 if its return falls short of the S&P500 return. However, this language does not take risk into account. That is, one might have a lower return than the benchmark in a particular year because of lower risk exposure. Underperform is also a term used by analysts to describe the prospects of a particular company. Usually, this means that the company will do worse than its industry average. Related: outperform.
Definition: In general, this means to do worse than some particular benchmark. Mutual Fund XYZ is said to underperform the S&P500 if its return falls short of the S&P500 return. However, this language does not take risk into account. That is, one might have a lower return than the benchmark in a particular year because of lower risk exposure. Underperform is also a term used by analysts to describe the prospects of a particular company. Usually, this means that the company will do worse than its industry average. Related: outperform.
Undervalued
Definition: A stock price perceived to be too low or cheap, as indicated by a particular valuation model. For instance, some might consider a particular company's stock price cheap if the company's price-earnings ratio is much lower than the industry average. To refer to undervaluation or overvaluation implicitly assumes some model of valuation. It is always possible that the security is valued correctly and that model applied is wrong.
Definition: A stock price perceived to be too low or cheap, as indicated by a particular valuation model. For instance, some might consider a particular company's stock price cheap if the company's price-earnings ratio is much lower than the industry average. To refer to undervaluation or overvaluation implicitly assumes some model of valuation. It is always possible that the security is valued correctly and that model applied is wrong.
Undervalued Security
Definition: A security selling below its market value or liquidation value.
Definition: A security selling below its market value or liquidation value.
Underweight
Definition: Usually refers to recommendation that leads an investor to reduce their investment in a particular security or asset class. The reduction is usually with respect to a benchmark. Suppose that U.S. equities compose 40% of the benchmark portfolio. If one thinks the U.S. will underperform, the investor may reduce the exposure to U.S. equity to less than 40%.
Definition: Usually refers to recommendation that leads an investor to reduce their investment in a particular security or asset class. The reduction is usually with respect to a benchmark. Suppose that U.S. equities compose 40% of the benchmark portfolio. If one thinks the U.S. will underperform, the investor may reduce the exposure to U.S. equity to less than 40%.
Underwithholding
Definition: When a taxpayer has withheld too little tax from salary and will therefore owe tax when filing a return.
Definition: When a taxpayer has withheld too little tax from salary and will therefore owe tax when filing a return.
Underwrite
Definition: To guarantee, as to guarantee the issuer of securities a specified price by entering into a purchase and sale agreement. To bring securities to market.
Definition: To guarantee, as to guarantee the issuer of securities a specified price by entering into a purchase and sale agreement. To bring securities to market.
Underwriter
Definition: A firm, usually an investment bank, that buys an issue of securities from a company and resells it to investors. In general, a party that guarantees the proceeds to the firm from a security sale, thereby in effect taking ownership of the securities.
Definition: A firm, usually an investment bank, that buys an issue of securities from a company and resells it to investors. In general, a party that guarantees the proceeds to the firm from a security sale, thereby in effect taking ownership of the securities.
Underwriting
Definition: Acting as the underwriter in the issue of new securities for a firm.
Definition: Acting as the underwriter in the issue of new securities for a firm.
Underwriting Agreement
Definition: The contract between a corporation issuing new publicly offered securities and the managing underwriter as agent for the underwriting group. Compare to agreement among underwriters.
Definition: The contract between a corporation issuing new publicly offered securities and the managing underwriter as agent for the underwriting group. Compare to agreement among underwriters.
Underwriting Commission
Definition: The fee investment bankers charge for underwriting a security issue.
Definition: The fee investment bankers charge for underwriting a security issue.
Underwriting Fee
Definition: The portion of the gross underwriting spread that compensates the securities firms that underwrite a public offering for their services.
Definition: The portion of the gross underwriting spread that compensates the securities firms that underwrite a public offering for their services.
Underwriting Income
Definition: For an insurance company, the difference between the premiums earned and the costs of settling claims.
Definition: For an insurance company, the difference between the premiums earned and the costs of settling claims.
Underwriting Spread
Definition: The income that is generated by the underwriting syndicate and the selling group, which is essentially the difference between the amount paid to the issuer of securities in a primary distribution and the public offering price.
Definition: The income that is generated by the underwriting syndicate and the selling group, which is essentially the difference between the amount paid to the issuer of securities in a primary distribution and the public offering price.
Underwriting Syndicate
Definition: A group of investment banks that work together to sell new security offerings to investors. The underwriting syndicate is led by the lead underwriter. See also: Lead underwriter.
Definition: A group of investment banks that work together to sell new security offerings to investors. The underwriting syndicate is led by the lead underwriter. See also: Lead underwriter.
Undigested Securities
Definition: Newly issued securities that are not purchased because of lack of demand during the initial public offering.
Definition: Newly issued securities that are not purchased because of lack of demand during the initial public offering.
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