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Refinance Your Mortgage if You Can Cut At Least One Point - Refinancing a mortgage only makes good sense if you are going to save more than 1% on the...

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Investing Glossary - U

    Uniform Gift to Minors Act (UGMA)

    Definition: The Uniform Gift to Minors Act (UGMA) allows minors to own securities, such as stocks.  Advice: Prior to the UGMA, young investors would have to have a trust set up in order to invest in the stock market.  However, the UGMA allows parents to set up investment accounts for their kids, so long as the child has an appointed custodian on the account to oversee it.The UTMA is an extension to the UGMA.  ...

    Unit Investment Trust (UIT)

    Definition: A unit investment trust (UIT) is a trust set up to invest in income securities, such as bonds.  When the securities generate income, it is paid out to shareholders in the trust.  When the bonds have all matured, the trust is dissolved.Advice: UIT's are commonly sold to investors through brokers.  They're a little bit harder to gain information on but there is a secondary market for these securities as well.Because municipal bonds typically have large initial purchase requirements, many UIT's are formed to invest in them.  This allows multiple investors to pool their money.  ...

    Ultra Vires Activities

    Ultra Vires Activities - Ultra vires activities refers to a, any or all types of related and relevant business activity, decisions, or actions that a business undertakes, NOT in their mandate, NOT legal and allowed, NOT in their operating charter, scope. It could lead to legal repercussions and actions, suits by shareholders and/or consumers, third parties or industry, even competitors. Businesses not doing what they are registered to do or produce by law. Articles and founding documents state and define clearly what these are and should be, will be limited to. Why and what business they do have to be...

    Uncertificated Shares

    Uncertificated Shares While the transfer agent has to keep track of everyone who owns stock in a company, he or she does not have to issue stock certificates to each of these people. When an agent decides to simply keep a record on his or her books of someone owning shares in a company, but does not issue a certificate to the individual, it is called an uncertificated share. This does not mean that the share is any less important, as the agent will still have a full record of the individual who purchased the shares, it just means that...


    Undercapitalization -  Undercapitalization refers to any scenario or context where companies are in a dire position of not being able to get the funding or monies they require. Here are some of the ways companies may be suffering from undercapitalization: (i) affordability of their operational expenses become an issue, (ii)  lack of capital, (iii) several real bankruptcy risks and triggers, too much financial pressure, overextended, (iv) simply being over-exposed to risk.  The inability of/for businesses to fund itself means it does not have enough money to run and operate any longer. There is simply not enough cash on-hand, running out...


    Definition: The process by which investment bankers raise capital for their clients (corporations looking to "go public"). TeenAnalyst Advice: When a company wants to sell stock to the public for the first time, they have to find investors to buy it.  The investment bankers step in and do this.  They price the stock and match it with interested investors.  In exchange, they take a fee of usually 5-10%.   ...

    Unearned Revenue

    Definition: Companies incur unearned revenue when customers prepay for a service or product.Advice: Imagine that you have a magazine subscription.  You may be required to pay for a year's subscription upfront.  The magazine company will put the cash on its books.  However, it can't book it as revenue because the company still has the liability to provide you with 12 issues of its magazine.  Therefore, a "contra account" is set up to account for this liability--this account is called unearned revenue.  ...


    Definition: A carefully-watched economic indicator representing the percent of the labor force that's actively seeking employment. TeenAnalyst Advice: The unemployment rate is a sign of how the economy has been doing.  But it's a lagging indicator, meaning it only confirms what's been going on.  It can't predict the future.Historically, the unemployment rate has varied between 2-10%.  Its historical average is around 5% (which is called "full employment").   ...

    Unit Linked

    Unit Linked This type of fund is usually found in Great Britain and it has many different assets linked to the overall fund. This is usually part of a life insurance policy and each life insurance contribution that you make will be linked to other aspects of the fund. This can also include stock options so basically, your life insurance dividends are going towards a mutual fund that will pay your family out should something happen to you. This allows for people to maximize their contributions, as the mutual fund is likely to get a nice return for your family...

    Unit Trust

    Unit Trust - This is an investment company registered through the Security and Exchange Commission for the purpose of selling stock shares through unmanaged portfolios. These portfolios are still income producing securities they are just not managed closely like Mutual Funds are. Being passed on to the shareholders are the dividend payments, all interest and any capital gains that may have been acquired. It may only be considered a tax free security when the trust is invested only in tax free assets. This type of investment tends to have lower than usual yearly operating expenses and so attracts many to...

    Unlimited Risk

    Unlimited Risk Sometimes in business, there is a tremendous risk of loss when making an investment. Unlimited risk means that there is no end to the loss that could potentially arise, making this a very difficult investment to make for most people. While the majority of investors will be smart enough to get out before losing everything, there is a small chance that things could collapse in a hurry and leave the investor in a very tough spot. This usually happens in short selling or futures trading, as the market can fluctuate greatly in a short period of time and...

    Upside Downside Ratio

    Definition: The volume of advancing shares versus the volume of declining shares in the NYSE. TeenAnalyst Advice: If the upside downside ratio is greater than 1, it means more stocks are going up than those going down.  And if it's below 1, stocks on the whole are declining.   ...

    Uniform Transfer to Minors Act (UTMA

    Definition: The UTMA was an extension to the UGMA that expanded the rights of minors to own other forms of property, such as collectibles and real estate. Advice: The UTMA has pretty much replaced the UGMA.  This act further allows young investors to own other types of assets, even including patents, royalties, real estate, art, collectibles, and business rights.      ...

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    Definition of the Day Insider Selling

    Insider Selling - Insider selling typically means the running for the hills. It could simply mean company, or corporate executives borrowed too much. Many investors sell more held stock certificates because they are forced to, rather than because these investors want to. The corporate stock certificate investor's insider sales are...

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