Archive for the 'U Glossary' Category

Value additivity principal

Value additivity principal

Value additivity principal

Prevails when the value of a whole group of assets exactly equals the sum of the values of the individual assets that make up the group of assets. Stated differently, the principle that the net present value of a set of independent projects is just the sum of the net present values of the individual projects.



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Utility value

Utility value

Utility value

The welfare a given investor assigns to an investment with a particular return and risk.



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Utility function

Utility function

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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Utility

Utility

Utility

The measure of the welfare or satisfaction of an investor or person.



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Uptick

Uptick

Uptick

A term used to describe a transaction that took place at a higher price than the preceding transaction involving the same security.



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Upstairs market

Upstairs market

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.



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Unsystematic risk

Unsystematic risk

Unsystematic risk

Also called the diversifiable risk or residual risk. The risk that is unique to a company such as a strike, the outcome of unfavorable litigation, or a natural catastrophe that can be eliminated through diversification. Related: Systematic risk



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Unsterilized intervention

Unsterilized intervention

Unsterilized intervention

Foreign exchange market intervention in which the monetary authorities have not insulated their domestic money supplies from the foreign exchange transactions.



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Unsecured debt

Unsecured debt

Unsecured debt

Debt that does not identify specific assets that can be taken over by the debtholder in case of default.



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Unseasoned issue

Unseasoned issue

Unseasoned issue

Issue of a security for which there is no existing market. See: seasoned issue.



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