U.I.:

Unemployment insurance

Undercovered or Naked Writer:

A writer/seller of an Option who does not own an equivalent position in the underlying interest.

Underlying Security:

Options: the security subject to being purchased or sold upon exercise of an option contract. For example, Bell Canada stock is the underlying security to Bell Canada options. Depository receipts: The class, series and number of the foreign shares represented by the depository receipt. The securities held in a mutual fund.

Under Perform:

When a investment or portfolio is expected to appreciate at a slower rate than the overall market Because of the type or mix of securities held.

Underwriter (Banking):

A person, banker or group which guarantees to furnish a definite sum of money by a definite date in return for an issue of bonds or stock. In insurance, the one assuming a risk in return for the payment of a premium, (i.e., the company), or the person who assesses the risk and establishes premiums rates and extent of coverage.

Underwriter (Investments):

In the bond/stock market means a brokerage firm or group of firms that has promised to buy a new issue of bonds/shares from a government or company at a fixed discounted price, then arranges to resell them to investors at full price.

Underwriter (Life):

The Insurance company

Undivided Interest:

When two or more people hold title to property are tenants in common, this refers to their equal entitlement to use the entire property.

Unemployment Rate:

The number of people unemployed measured as a percentage of the labor force.

Unfunded Debt:

Debt maturing within one year (short-term debt). Funded debt is maturing beyond on year

Unit Benefit Plan:

A type of defined benefit plan under which the pension earned each year is established by formula.

Unit Trust:

An unincorporated fund whose organizational structure permits the conduit treatment of income realized by the fund , also, the name used in the U.K. that describes a Mutual Fund share.

Universal Life Insurance:

Universal life insurance (like whole life insurance) provides coverage for your entire life and builds up savings over time. Unlike whole life, you can use the interest from your accumulated savings to help pay your premiums, which are flexible. The people you name as beneficiaries collect a death benefit if you die while covered.

Unsecured Loan:

Loans that rely solely on your credit history, reputation and integrity to ensure payment.

Unsystematic Risk:

The uncertainties that are specific to one particular company and do not affect the market as a whole.

Unused RRSP- Carried Forward:

If a taxpayer has not contributed the maximum allowable RRSP contribution during a year the excess (carry forward room) amount can be carried forward for up to six years. This increases the maximum allowable RRSP contribution for future years.

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