Found:  10 Items

Underlying Asset

The security, property or loan agreement that an option gives the option holder the right to buy or to sell.

Underweight

A portfolio is said to be underweight in a market, sector or security, if its holding in that market, sector or security represents a lower percentage of its total portfolio than the weighting of that market, sector or security in the relevant benchmark index (opposite of Overweight).

Underwrite

A process whereby investment bankers (underwriters) buy a new issue of securities from the issuing corporation or government entity and resell them to the public. The underwriter makes a profit from the underwriting spread--the difference between the price paid to the issuer and the public offering price.

Underwriting

The process of selling newly issued shares to an investment bank (the underwriter) who then sells the shares to investors.

Underwriting Commission

The fee paid to an investment trust, or other City institution, for guaranteeing to 'underwrite' an issue of new shares: that is to buy any shares which may remain unsold. It is a kind of insurance for the issuer. The fee is paid even if the trust does not have to buy any shares.

Underwriting Syndicate

A group of investment banks that work together to sell new security offerings to investors. The underwriting syndicate is led by the lead underwriter.

Unfranked Income

Unfranked income includes income from all untaxed sources - for example, foreign share dividends, interest and underwriting commission - and is taxable in the hands of an investment trust. UK share dividends are, on the other hand, franked income in the hands of an investment trust. That is, they are paid to the trust out of company revenue after corporation tax has been deducted. They are therefore regarded as 'tax paid' and there is no further tax to be paid by the investment trust.

Unit Investment Trust (UIT)

An investment company which purchases a fixed, unmanaged portfolio of income-producing securities and then sells shares in the trust to investors. Also called Fixed Investment Trust, Participating Trust or Unit Trust.

Unit Trust

A unit trust is a collective investment scheme under which the stocks and shares of the fund are held on trust for the investors. Generally speaking it is an open-ended fund. (similar to Mutual Fund).

Unlisted Investments

Investments in companies which have no stockmarket listing.