Underlying
The designated financial
instrument which must be delivered in completion of an option or futures
contract.
Underwriter
One who does underwriting. A
financial organization that handles sales of new securities which a company or
municipality wishes to sell in order to raise money. Typically the underwriters
will guarantee subscription to securities say, an issue of equity from the
company at a stated price, and are under an obligation to purchase securities
upto the amount they have underwritten, should the public not subscribe for the
issue.
Underwriting
An agreement with or without
conditions to subscribe to the securities of a body corporate when the existing
shareholders of such body corporate or the public do not subscribe to the
securities offered to them.
Unit Holders
Investors in unit trusts / mutual
funds.
Unit of trading
The minimum number of shares of a
company which are accepted for normal trading on the stock exchange. All
transactions are generally done in multiple of trading units. Odd lots are generally
traded at a small discount.
Unmatched Transactions
A check is carried out to find
out whether the purchases and sales as reported by the members match. A list of
those transactions which do not match are called unmatched transactions.
Unsystematic Risk
Also called the diversifiable
risk, residual risk, or company-specific risk, the risk that is unique to a
company such as a strike, the outcome of unfavourable litigation, or a natural
catastrophe.
Upstairs market
A network of trading desks for
the major brokerage firms and institutional investors that communicate with
each other by means of electronic display systems and telephones to facilitate
block trades and program traders.
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