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Unbundling

A reference to disclosing separate fees that are charged for particular services versus wrapping them together so investors may not know what individual service costs.

Underfunded Pension Plan

The liabilities of the plan exceed the assets of the plan.

Underperform

When the performance of a security or portfolio is lower than the market or expectations.

Underwriter

An investment banker who particpates in the sale of new stocks or the issue of additonal shares of existing stocks to the investing public.

Undervalued

In the opinion of an analyst, the price of a security is low in relation to other securities. For example, a stock has a P/E of 10 when other stocks in its industry group are trading at 15. The stock may deserve to be trading at 10 in which case it's not undervalued.

Underwriter

A firm that buys an issue of securities from a company and resells the shares to the public. The firm guarantees the proceeds of the sale to the issuer.

Unearned Income

Income received in advance of being earned.

Uniform Gift to Minors Act (UGMA)

A law that simplifies the tax effective transfer of assets to minors without the complexity of trusts, guardianships, and legal documents.

Unissued Stock

Authorized stock that has not been issued.

U.S. Government Securities

Securities issued by the U.S. government versus securities issued by agencies of the U.S. government.

Unsecured Debt

Debt that does not specify assets that the debtholder receives in the case of a default.

Unsystematic Risk

Risk that is associated with the ownership of the stock of a particular company. The risk can be diversified by owning the stocks of multiple companies.

Upside Potential

The amount by which investors or analysts expect the price of a security or the market value of a portfolio to increase.