| Unallocated
Gain |
Fund
distributions that are not categorized as short, medium or long term. |
| Uncovered
Call |
A short call
option position in which the writer does not own shares of
underlying stock represented by his option contracts.
Also called a "naked" call, it is much riskier for the
writer than a covered
call, where the writer owns the underlying stock. If the buyer
of a call exercises the option to call, the writer would be forced
to buy the stock at market price. |
| Uncovered
Put |
A short put
option position in which the writer does not have a corresponding
short stock position or has not deposited, in a cash account, cash
or cash equivalents equal to the exercise value of the put. Also
called "naked" puts, the writer has pledged to buy the
stock at a certain price if the buyer of the options chooses to
exercise it. The nature of uncovered options means the writer's
risk is unlimited. |
| Underlying
Security |
The
security that one has the right to buy or sell according to the terms
of an option contract. |
| Underwriter |
The
investment banking firm that brought the company public. (see Investment
Banker) |
| Unlisted
Stock |
A
security not listed on a stock exchange. (see Over-the-Counter) |
| Up
Tick |
A
term used to designate a transaction made at a price higher than
the preceding transaction. Also called a "plus tick." A "zero
plus" tick is a term used for a transaction at the same price
as the preceding trade but higher than the preceding different price.
To indicate an up tick, a plus sign is usually displayed next to
the last price of a stock. (see Down
Tick) |
| Upgrade |
A
classic positive change in ratings for a stock, and or other Analyst rated
security. (see Downgrade) |
| |
|
| Variable
Annuity |
A
life insurance policy where the annuity premium (a set amount of
dollars) is immediately turned into units of a portfolio of stocks.
Upon retirement, the policyholder is paid accordingly to accumulated
units, the dollar value of which varies according to the performance
of the stock portfolio. Its objective is to enhance, through stock
investment, the purchasing value of the annuity which otherwise is
subject to erosion through inflation. |
| Volatility |
The
degree of price fluctuation for a given asset, rate, or index; usually
expressed as a variance or standard deviation. |
| Volume |
The
number of shares or contracts traded in a security or an entire market
during a given period. Volume is usually considered on a daily basis
and a daily average is computed for longer periods. |
| Voting
Right |
The
common stockholders' right to vote their stock in the affairs of
a company. Preferred stock usually has the right to vote when preferred
dividends are in default for a specified period. The right to vote
may be delegated by the stockholder to another person. (see Cumulative
Voting, Proxy) |
| |
|
| Wallflower |
Stock
that has fallen out of favor with investors; tends to have a low P/E. |
| Wanted
for Cash |
A
statement displayed on market tickers which indicates that a bidder
will pay cash for same day settlement of a block of a specified security. |
| Warrant |
A
certificate giving the holder the right to purchase securities at
a stipulated price within a specified time limit or perpetually.
Sometimes a warrant is offered with securities as an inducement to
buy. (see Rights) |
| Wasting
Asset |
An
asset which has a limited life and thus, decreases in value (depreciates)
over time. Also applied to consumed assets, such as gas, and termed "depletion." |
| Watch
List |
A
list of securities selected for special surveillance by a brokerage,
exchange or regulatory organization; firms on the list are often
takeover targets, companies planning to issue new securities or stocks
showing unusual activity. |
| When
Issued |
A
short form of "when, as and if issued." The term indicates
a conditional transaction in a security authorized for issuance but
not as yet actually issued. All "when issued" transactions
are on an "if" basis, to be settled if and when the actual
security is issued and the exchange or National Association of Securities
Dealers rules the transactions are to be settled. |
| Working
Capital |
The
assets a company has that can be poured into the company's operations. |
| Working
Control |
Theoretically,
ownership of 51 percent of a company's voting stock is necessary
to exercise control. In practice - and this is particularly true
in the case of a large corporation - effective control sometimes
can be exerted through ownership, individually or by a group acting
in concert, of less than 50 percent. |
| Writer |
A
person who assumes the obligation to sell (call)
or buy (put) the
underlying security at an option's exercise
price. |
