Unauthorized Insurance
What is 'Unauthorized Insurance' A phony plan that claims to provide financial protection against unforeseen and potentially catastrophic events. Unauthorized insurance is a scam that some unscrupulous individuals posing as insurance agents use to collect "premiums" from unwitting consumers. The "agents" take the money and run, and the consumers are not only out the "premium" money, but...
Underlying Security
What is an 'Underlying Security' An underlying security is the security on which a derivative derives its value. For example, a call option on Google stock gives the holder the right, but not the obligation, to purchase Google stock at the price specified in the option contract. In this case, Google stock is the underlying security. ...
Unconditional Probability
What is 'Unconditional Probability The definition of unconditional probability is the chance that a single outcome results from a sample of possible outcomes. To find the unconditional probability, sum the outcomes of the event and divide by the total number of possible outcomes. An example of unconditional probability would be flipping a coin. The chance of flipping a coin and it...
Unbundling
DefinitionUnbundling is a neologism to describe how the ubiquity of mobile devices, Internet connectivity, consumer web technologies, social media and information access in the 21st century is affecting older institutions by "break up the packages they once offered, providing particular parts of them at a scale and cost unmatchable by the old order." Unbundling has been called "the great...
Underlying Cost
What is 'Underlying Cost' Any expense that may be projected to occur during the budgetary period succeeding the current one. Underlying costs are expenses that the firm anticipates incurring and paying out throughout the course of the budget period. Items such as rent, lease, or mortgage, depreciation, utilities, and so on are examples of what is meant by this. In the...
Uncollected Funds
What is 'Uncollected Funds' The amount of a bank deposit that comes from checks that have yet to be cleared by the bank from which the checks are drawn. Essentially, uncollected funds are sums of money that the bank needs to account for prior to releasing the funds to the depositor. Explaining 'Uncollected Funds' ...
Ultra Vires Acts
What is 'Ultra Vires Acts' Any act that lies beyond the authority of a corporation to perform. Ultra Vires acts fall outside the powers that are specifically listed in a corporate charter or state law. They can also be any action that is specifically prohibited by the corporate charter. Explaining 'Ultra Vires Acts' Ultra...
Ultra ETF
What is 'Ultra ETF' A class of exchange-traded funds (ETF) that employs leverage in an effort to achieve double the return of a set benchmark. The first ultra ETFs were launched in 2006 and the class has grown to include different ETFs with underlying benchmarks ranging from broad market indexes, such as the S&P 500 and Russell...
Unchanged
What is 'Unchanged' A situation in which the price or rate of a security does not change between two periods. This can be over any time frame including a trading day, week, or even as much as a year. Sometimes seen as "UNCH." Explaining 'Unchanged' For example, assume that the closing price...
Underlying Option Security
What is an underlying option security An underlying option security is a security that can be used as collateral for options contracts. The most common type of underlying option security is a stock, but other securities such as bonds, commodities, and currencies can also be used. When an options contract is created, the buyer and seller agree to purchase or...