An undervalued security is one that is selling below its liquidation value or the market value that analysts believe it deserves. Factors for undervaluation may include an unfavored industry, lack of company recognition, or an erratic earnings history.
The term 'underwater' describes a financial condition where an asset, loan, or portfolio has a value less than its associated debt or purchase price.
In the contexts of insurance and investments, underwriting involves assuming risk in exchange for a premium or facilitating the issuance and resale of securities, respectively.
An underwriter assesses risks and decides whether or not these risks can be insured, setting the appropriate premium charges, typically based on the frequency of past claims. Additionally, underwriters play a crucial role in financial transactions by guaranteeing to buy unsold shares during new issue offerings.
Underwriters Laboratories, Inc. (UL) is a private organization that performs a wide range of product safety tests on fire-protective equipment, electric and heating appliances, wiring, and building materials. The organization certifies products for safety standards and labels them accordingly after successful testing.
A group of financial institutions that collaborate to underwrite a new securities issue, ensuring the initial sale is facilitated efficiently.
The difference between the amount paid to an issuer of securities in a primary distribution and the public offering price. It varies based on issue size, issuer's financial strength, security type, security status, and investment bankers' commitments.
A person whose bankruptcy has not been discharged, limiting their ability to obtain credit and conduct business without specific disclosures, and restricting them from holding certain public offices.
Goods or services sold at the full established price without allowances or discounts.
Undistributable reserves, often termed capital reserves, refer to specific reserves that cannot be distributed to shareholders as per the stipulations of the Companies Act, various statutes, or a company's constitutional documents. These reserves ensure the financial stability and compliance of a company.
Undistributed profit refers to the profit earned by an organization that has not been distributed to its shareholders by way of dividends. Such sums are available for later distribution but are frequently used by companies to finance their activities.
Undistributed profits, also known as retained earnings or net income, refer to the portion of a company's earnings that is not distributed to shareholders as dividends but is retained by the company for reinvestment in its operations, debt repayment, or other purposes.
Undivided interest describes an ownership right to use and possession of a property that is shared among co-owners, with no one co-owner having exclusive rights to any portion of the property.
Undivided profit refers to the portion of a bank's profits that have neither been paid out as dividends nor transferred to the bank's surplus account, as shown on the balance sheet.
The term 'undocumented' can refer to workers without immigration documents or products/features not described in official documentation.
Undue Influence is the wrongful influence exerted by one person over another, to such an extent that it prevents the influenced individual from acting according to their free will, often leading to the nullification of legal documents like wills or the invalidation of gifts.
An unearned discount is an account on the books of a lending institution that recognizes interest deducted in advance from a loan. This interest will be taken into income as earned over the life of the loan.
Unearned income refers to income that is not derived from active work, such as wages, salaries, or professional fees, but from investments, savings, or other passive sources like dividends, interest, and rental income.
Unearned income or revenue is income received by a business but not yet earned. It is typically classified as a current liability on a company's balance sheet.
Unearned increment refers to the increase in the value of real estate that occurs without any effort or investment from the property owner. This often results from factors such as population growth, economic development, or improvements in the surrounding area.
Unearned interest refers to interest that has been collected on a loan but cannot yet be counted as book earnings. This situation typically occurs with prepaid interest, which is taxable upon receipt by both cash and accrual basis taxpayers.
An unearned premium is an insurance premium that is paid in advance for coverage that extends beyond the current accounting period. If the policy is canceled before the coverage period ends, the insured is entitled to a refund of the unearned premium.
Individuals who are not employable due to a lack of skills, education, and experience, often resulting in chronic unemployment.
The unemployed labor force consists of the portion of the population that is not employed but is willing and able to work and is actively seeking employment.
Unemployment is the state of being without paid work, though willing and able to work and actively seeking work. It also refers to the proportion of the labor force that is without paid work.
Unemployment compensation refers to the benefits provided to individuals who are unemployed through no fault of their own. These benefits are typically taxable and can come from various sources, including state agencies and special government programs.
Learn about the Unemployment Insurance Tax which is deductible as a business expense for employers and understand its implications and relation to the Federal Unemployment Tax Act (FUTA).
The unemployment rate represents the percentage of the civilian labor force that is actively looking for work but is unable to find jobs. This rate is compiled by the U.S. Department of Labor, in cooperation with labor departments in all states, and is released to the public on the first Friday of every month.
Real estate with free and clear title; property owned in fee simple, meaning there are no liens or encumbrances affecting its ownership or title.
Unethical behavior or practices refer to actions or conduct that are not in accordance with the established standards of behavior within a business or profession. Being unethical can encompass a wide range of actions that violate moral principles, legal standards, or rules of conduct set by governing bodies in various fields.
The balance of an item of expenditure that has not yet been written off to the profit and loss account, representing the value of goods or services that will provide future economic benefits.
Unfair competition encompasses acts or practices of businesses that lead to consumer deception, misappropriation of trade symbols, and violations of trade practices laws that ultimately result in the unfair gain of market advantage over competing entities.
Illegal union or management labor practices. The National Labor Relations Board (NLRB) determines whether a particular labor practice is an unfair labor practice subject to court appeal.
Unfair labor practices by unions are specific actions prohibited by the Taft-Hartley Act of 1947, designed to protect workers and employers from coercive or discriminatory actions by unions.
An unfavorable balance of trade, also known as a trade deficit, occurs when the value of a country's imports exceeds the value of its exports. It indicates that a country is purchasing more goods and services from other nations than it is selling abroad.
Unfavourable variance, also known as adverse variance, indicates that actual financial performance is worse than the budgeted expectation, resulting in lower profits or higher costs than anticipated.
Any investment income received by a company that did not qualify as franked investment income, mainly impacting the tax treatment of dividends.
In economic terms, to unfreeze means to remove restrictions, often related to price controls or import/export bans, allowing for market adjustments based on supply and demand.
An unfunded pension or profit-sharing plan refers to a financial arrangement that does not meet the minimum funding standards. This could pose potential risks to the beneficiaries of such plans due to the lack of adequate financial backing.
An unfunded pension system, also known as a pay-as-you-go pension system, is a retirement plan where current workers' contributions are used to pay benefits to current retirees.
An abbreviation for Uniform Business Rate, a nationwide, standardized rate set by the government to determine the amount of business rates (a type of property tax) paid by businesses.
Uniform Business Rate (UBR) is a standardized rate set by the government used to calculate non-domestic property taxes in the United Kingdom.
Uniform Capitalization Rules (UNICAP) are a set of tax accounting principles governing the capitalization of direct and indirect costs to property produced by taxpayers or acquired for resale. Established under the Tax Reform Act of 1986, these rules aim to ensure consistent decision-making regarding inventory cost allocation, leading to more accurate financial reporting and tax compliance.
Uniform Capitalization Rules (UNICAP) are a method of valuing inventory for tax purposes, requiring the capitalization of direct costs and an allocable portion of indirect costs related to production or resale activities. These costs must be included in the basis of property produced or in inventory costs and are then recoverable through depreciation, amortization, or as cost of goods sold.
The Uniform Commercial Code (UCC) is a collection of standardized laws designed to regulate commercial transactions across the United States. It aims to harmonize and streamline business laws to create consistency and facilitate easier trade and commerce between states.
A comprehensive set of laws governing various commercial transactions, including the sale of goods, banking transactions, secured transactions in personal property, and other matters. The UCC is designed to bring uniformity to the laws governing these areas across the states.
The Uniform Commercial Code (UCC) is a comprehensive set of laws governing all commercial transactions in the United States. It is designed to provide consistency and predictability in the regulation of business activities across all states.
Uniform costing entails the use of a standard costing system by multiple organizations within the same industry, ensuring consistency and comparability in cost accounting.
The Uniform Gifts to Minors Act (UGMA) allows minors to receive gifts, such as money or securities, in a simple, irrevocable manner without the need for a guardian or trustee.
The Uniform Gifts to Minors Act (UGMA) is a legislative framework adopted by most U.S. states to govern the distribution and administration of assets gifted to minors. It allows minors to own assets without requiring the services of an attorney to establish a special trust.
A Uniform Resource Locator (URL) is a reference or address used to access resources on the Internet. It is the global address of documents and other resources on the World Wide Web.
A Uniform Resource Locator (URL) is an addressing scheme used by web browsers to locate resources on the Internet, effectively serving as the web address for web pages, images, videos, and other resources.
The Uniform Settlement Statement, commonly known as the HUD-1 form, is a document prescribed by the Real Estate Settlement Procedures Act (RESPA). It is used for federally related mortgage loans to provide a detailed account of all charges and credits to the buyer and seller in a real estate transaction.
A comprehensive set of professional standards promulgated by the Appraisal Foundation, designed for state-certified appraisers and those in certain appraisal organizations to follow in preparing appraisal reports.
The Uniform Standards of Professional Appraisal Practice (USPAP) outlines the ethical standards and requirements for professional appraisers to ensure competency and transparency in the appraisal process.
A unilateral contract is an agreement whereby one party makes a promise to do, or refrain from doing, something in return for an actual performance by the other party, rather than a mere promise of performance.
Unilateral relief is a measure taken by the UK authorities to provide relief against double taxation for taxes paid in a country with which the UK does not have a double-taxation agreement.
Unimproved property refers to land that has not received any development, construction, or site preparation. It qualifies for capital gain or loss treatment, unlike improved property which is subject to ordinary income tax treatment.
An unincorporated association is a group of individuals who come together for a common purpose but do not form a corporation or any other legal entity. Their structure lacks a separate legal personality, meaning any legal actions must be taken against the individual members rather than the association itself.
An uninsurable risk is a risk that is considered too extreme or too difficult to quantify, thereby making it undesirable for insurance companies to provide coverage.
Uninsured Motorist Insurance is a form of automobile insurance that covers the policyholder and family members for injuries caused by a hit-and-run driver or an uninsured motorist, provided the at-fault driver carries no liability insurance.
Unintended or unplanned investment refers to a buildup in inventory when sales are less than anticipated. This situation forces a company to invest in the excess inventory until sales catch up, during which production may be reduced or halted.
A union is an employee association designed to promote employee rights and work-related welfare. Union organizations are formally recognized under the Railway Labor Act and the Wagner Act, as well as by related legislation.
A Union Contract, also known as a Labor Agreement, outlines the terms of employment between a company and its unionized workforce. These contracts typically include provisions related to wages, working hours, benefits, and other conditions of employment.
An identifying mark placed on goods to signify that they were produced by a labor union or in a shop that deals with organized labor. It encourages patronage by other union members and supporters.
Union rate is the standard hourly wage rate for a specific occupation or trade, established through collective bargaining. It is commonly the minimum rate that qualified individuals in the job can earn.
Union Recognition, also known as union certification, is the acknowledgment by an employer or authority that a trade union has the right to represent and negotiate on behalf of a group of workers. This is typically achieved after a secret-ballot election, supervised by the National Labor Relations Board (NLRB), in which the union secures at least 50 percent of the vote.
Union salting is a union organizing method where one or more union members join a non-unionized organization as employees with the intention of organizing its membership.
A union shop is a type of workplace in which all employees must be members of a union. However, nonunion members may work provided they agree to join the union after a specified period.
A labor agreement providing that existing employees may continue as union or nonunion members, but new employees must join the union.
In the context of underwriting risks, 'unique impairment' refers to specific factors that differentiate an applicant from a standard applicant, and may include conditions or characteristics that adversely impact life expectancy or risk profile.
Unissued share capital refers to the portion of a company's authorized share capital that has not yet been issued to shareholders. It is the difference between the authorized share capital and the issued share capital.
Unissued stock refers to shares of a corporation's stock authorized in its charter but not yet issued. These shares are displayed on the balance sheet along with shares that are issued and outstanding. Unissued shares do not pay dividends and cannot be voted. They differ from treasury stock, which is issued but not outstanding as it has been reacquired by the corporation.
In various contexts, a unit can represent either a standard measure used in transactions or a division within a larger entity, such as a business or organization.
Expenditure incurred by an organization expressed as a rate per unit of production or sales. While the unit cost is fundamental for understanding profitability, it can be challenging to make valid comparisons between organizations due to arbitrary allocation of fixed overhead costs.
A Unit Investment Trust (UIT) is an investment vehicle registered with the SEC under the Investment Company Act of 1940. It purchases a fixed portfolio of securities, which may include corporate, municipal, or government bonds, mortgage-backed securities, common stock, or preferred stock.
The unit of account is a fundamental concept in economics and accounting that enables the quantification and comparison of the value of goods, services, and transactions, as well as the standardization of a country's currency.
The term 'Unit of Trading' refers to the normal number of shares, bonds, or commodities that constitute the minimum unit of trading on an exchange.
The price paid per unit of item purchased or charged per unit of product sold, representing the cost associated with a single unit of a product or service.
Unit Standard Operating Profit represents the standard operating profit expressed as a rate per unit of production or sales, crucial for assessing profitability on a per-item basis.
The unit standard production cost is the cost per unit of production, incorporating all standard overheads, direct labor, and direct materials, used to measure efficiency and control costs in manufacturing.
The Unit Standard Selling Price is a predefined rate at which a product or service is intended to be sold, expressed on a per-unit basis.
An investment fund that pools resources from multiple investors to purchase a diversified portfolio of securities, managed either as an actively traded or static investment portfolio.
An essential measure in economics and business that calculates the cost of labor required to produce one unit of a good or service.
In cost accounting, unit-level activities are those that are performed each time a unit is produced. These include tasks directly correlated with the production volume, such as machine operation and direct labor.
Unitary elasticity refers to a situation in economics where a change in the market price of a good results in no change in the total amount spent for the good within the market.
An independent body established in 1946 to provide external audit services to the UN General Assembly. This involves certifying the accounts of the UN and its funds and programs, and providing a wide range of financial, managerial, and value-for-money audits.
United Parcel Service (UPS) is a freight company that specializes in the transportation of letters, packages, and freight. It is one of the leading providers in the logistics and transportation industry globally.
An index that compares variances in the U.S. dollar's value on a scale of 100 with a basket of currencies that include the euro, the yen, the British pound sterling, the Canadian dollar, the Swedish krona, and the Swiss franc.
Direct government obligations, comprising debt issues of the U.S. government, including Treasury bills, notes, bonds, and Series EE, Series HH, and Series I savings bonds, as distinct from government-sponsored agency issues.
For income tax purposes, a United States Person (USP) refers to any individual or entity that falls under the umbrella of being liable to U.S. taxation, including citizens, residents, domestic partnerships, corporations, and certain estates and trusts.
The Units of Production Method is a depreciation approach in which expense is based on the real usage of an asset, typically used for machinery and production equipment. This method relates an asset’s depreciation expense to the total production output or usage during its useful life.
The principle of Unity of Command in management states that each subordinate should report to only one superior to avoid confusion and conflict.
UDDI is a standard that serves as an electronic directory for businesses to register and discover each other over the Internet, facilitating the integration of e-commerce systems.
Universal Life Insurance is a type of adjustable life insurance that allows flexibility in premiums, adjustable protection, and transparency in charges. It provides more flexibility compared to traditional whole life insurance products.
The Universal Product Code (UPC) is a unique number used to identify a product and is translated into barcodes, consisting of a series of vertical parallel bars. This code is primarily used for scan entry by electronic cash registers to streamline product sales and inventory tracking.
A Universal Resource Locator, commonly referred to as URL, is a reference to a web resource that specifies its location on a computer network and a mechanism for retrieving it.
Universal Serial Bus (USB) is a standard interface used for connecting peripherals to computers and other devices, offering improved data transfer rates and ease of connectivity as compared to earlier technologies like parallel ports.
A life insurance policy that combines the features of universal life insurance and variable life insurance, allowing policyholders to direct excess interest credited to the cash value account based on investment results in various separate accounts such as equities, bonds, and real estate.
In statistics, the term 'universe' represents all possible elements within a particular set. For example, the universe of shoppers in a country would encompass every individual who engages in shopping activities within that country.
