Financial Glossary


U

Unannounced Deals. A transaction in which the buyer and seller do not want their transactions announced to avoid notifying customers, creditors, or suppliers.

Underwriter. The Investment Bank that coordinates the issuing of securities by a company, and which purchases all such securities directly from the company and then resells them to the ultimate buyers.

Underwriter's Cutback. The right of an underwriter to reduce the number of securities being sold in an offering, generally the number of those securities being sold by selling stockholders. This right is designed to facilitate the company's public offering. The cutback is usually pro rata to all selling stockholders in proportion to the shares they intend to sell. Also referred to as a haircut.

Underwriting Discounts and Commissions. The fees paid to the underwriter(s) in connection with a public offering. Discounts and commissions do not include the costs of a public offering such as SEC filing fees, printing, legal, or accounting costs, or stock transfer taxes.

Underwriting Syndicate. Investment banks that act as a group to market a public offering, purchase the securities from the issuer, and then resell the securities to the public.

Unemployment. Generally those who do not have a job, are looking for one and are available to take work when it arises. People with a job starting in less than a month are not required to actively seek work to be considered as unemployed. Economists recognize three forms of unemployment.

         Frictional. Occurs when people are in the process of changing their job status. These include people who just entered the labor force after completing their schooling, women who enter the labor force after raising their families, and those between jobs.

         Cyclical. Occurs when the economy enters a temporary downturn. The most recognizable form of cyclical unemployment occurs when workers are temporarily laid off.

         Structural. Occurs when workers are unable to fill available jobs because they lack the skills, do not live where jobs are available, or are unwilling to work at the wage rate offered in the market.

Unit. A security that consists of two or more securities sold in combination to achieve a particular financial result, generally a financial result that is difficult to structure into a single security. A common example is a unit consisting of one security that provides for protection of principal and an interest component (such as subordinated debt or redeemable preferred stock) combined with a different security that has the potential for equity appreciation based on the success of the business, such as options, warrants, or common stock.

Unit Labor Costs or Cost Performance. A method of measuring competitiveness -- national cost performance -- that compares the total wages of a country (or an industry or individual firm) relative to its total output.

Unrealized Gain. The profit you would earn if you sold an asset which has increased in value. Since you have not actually received any cash profit, it's an unrealized (or "paper") gain on which no taxes are due.However, if you were to sell the asset for more than what you paid for it, you would have to pay taxes on your profit.

Unsecured Debt. Debt for which no specific assets have been pledged as collateral security for repayment of the debt.

Unsecured Loan. A loan for which there is no collateral. Because the financial institution cannon seize property in the event of non-payment, unsecured loans are more expensive than secured loans.

Unsecured Note. A note evidencing indebtedness for which no security has been pledged or mortgaged.