Glossary

U

• Uncovered (Naked) A position, which is not covered by an offsetting position in the underlying instrument.
• Underlying share The specific share to which call and put options relate - e.g. 1,000 shares of Ranbaxy.
• Underwriter This is a brokerage firm that raises money for companies using public equity and debt markets. Underwriters are financial intermediaries that buy stock or bonds from an issuer and then sell these securities to the public.
• Underwriting Under writing is a kind of guarantee provided by an underwriter wherein the underwriter agrees to purchase a certain number of shares in the event the issue is under-subscribed. For this, the underwriter charges a certain fee from the issuer.
• Unique Client Code This code is allotted to all members of exchange that will tell you about all details of clients.
• Unit A quantity generally accepted as a standard for exchange.
• Unlimited risk This refers to the investment avenue where the loss potential is unlimited. For example short selling and futures
• Unlisted securities A security, which is not traded on any exchange, may be due to an inability to meet listing requirements.
• Unsystematic Risk This is the part of the total risk that is peculiar to a particular company. This risk could arise due to company specific factors like operational factors, financial distress, labor turnover etc. This type of risk can be reduced to a great extent with the help of diversification.
• Unsystematic Risk This is the part of the total risk that is peculiar to a particular company. This risk could arise due to company specific factors like operational factors, financial distress, labour turnover etc. This type of risk can be reduced to a great extent with the help of diversification.