The role of this glossary is to present brief definitions of most of the key concepts in economics and finance (in total 1064 names-definitions) as well as security markets (financial, capital, money) with aim the reader to be able to understand and become familiar with the terminology in the analyses that will present in the category economics.
Additionally, we hope that the reader by acquiring intimacy with the economic terminology, he will also love the science/art of economics, giving to it a significant part of his personal time.
In the following glossary we tried to include the most well-known definitions and terms in the field of Economics & Finance. If you still find that a term or definition is missing and you know that it can be included in this glossary, please do not hesitate to contact us via the contact form of our web-site (Contact Us) and the Liberal Globe will edit it and will include it.
Glossary Economics & Finance
There are currently 22 names in this directory beginning with the letter U.
Unbiased expectations theoryis named a theory which states the explanation of the term structure of interest rates. It holds that a forward rate represents the average opinion of the expected future spot rate for the time period in question.
Uncovered Interest Parity (UIP)is named the situation that occurs when the rates of returns on assets of the same risk are equalized across countries once expected exchange rate changes are considered.
Under margined accountis named a margin account in which the actual margin is reduced below the maintenance margin requirement.
Underfundedif the social security or insurance contributions equally to a pension plan and their earnings are not enough to pay out the defined benefits, the pension plan is named as underfunded.
Underground economy (shadow economy)are named those economic activities from which income earned is not reported and therefore is untaxed.
Underpriced security ( or undervalued security)is named a security whose expected return is greater than its equilibrium expected return. In other words, an underpriced security has a positive alpha.
Undervaluation, Overvaluationa currency is named as undervalued (overvalued) when its exchange rate is below (above) the level which is consistent with its long-term fundamentals.
Underwritersare named the investment banks which guarantee prices on securities to corporations and then sell the securities to the public.
Underwritingis named the process by which investment bankers bring new securities in the primary security market.
Unemploymentis named the number of individuals without a job who are actively seeking work.
Unemployment benefitis named the financial assistance which is given by the government to those seeking a job, but they are unable to find a suitable employment.
Unemployment rateis named the ratio of the number of unemployed workers to total labour force.
Unexpected rate of inflationis named that portion of inflation experienced over a given period which was not anticipated by investors.
Unexploited profit opportunityis named a condition in which someone can earn a higher than normal return.
Unique risk (unsystematic risk)is that part of a security's total risk which is not related to moves in the market portfolio and, hence, can be diversified away.
Unit investment trustis named an unmanaged investment company with a limited life that raises an initial sum of capital flow from investors and next uses the proceeds to purchase a fixed portfolio of securities (typically bonds).
Unit of accountis named something which is used to measure value in the economy.
Unrealized capital gain or lossis named a capital gain (or loss) on an asset that has not yet been realized for tax purposes through the sale or exchange of the asset.
Unsterilized foreign exchange interventionis named a foreign exchange intervention in which a central bank allows the purchase or sale of domestic currency to influence the monetary base.
Up-tickis named a trade in a security made at a price higher than the price of the previous trade in that same security.
User defined eventis named a crisis like a fall in the S&P 500, which is defined by an individual for a User-Defined Stress Test in order to control the amount of loss (% or unit base) that could occur if the crisis were to happen again.
Utilityis named the satisfaction that a consumer derives from the consumption of goods and services.
