- Underfunded pension plan
- A pension plan that has a negative surplus (i.e., liabilities
- The "something" that the parties agree to exchange in a derivative
- Underwriting income
- For an insurance company, the difference between the
premiums earned and the costs of settling claims.
- Undiversifiable risk
- Related: Systematic risk
- Universal life
- A whole life insurance product whose investment component pays a
competitive interest rate rather than the below-market crediting rate.
- 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 unfavorable
litigation, or a natural catastrophe. Related: Systematic risk
- 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 trades.
- Uptick trade
- Related: Tick-test rules
- Utility function
- A mathematical expression that assigns a value to all possible
choices. In portfolio theory the utility function expresses the preferences of economic
entities with respect to perceived risk and expected return.
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