What is an unconsolidated subsidiary
An unconsolidated subsidiary is a subsidiary in which the parent company does not include the subsidiary's financials in its consolidated financial statements. The term "unconsolidated" simply means that the subsidiary is not combined with the...
DefinitionIn finance, unsecured debt refers to any type of debt or general obligation that is not protected by a guarantor, or collateralized by a lien on specific assets of the borrower in the case of a bankruptcy or liquidation...
An uncovered option is a type of option contract that is not hedged by an opposite position in the underlying security. This leaves the holder of the option open to unlimited losses if the market price of the underlying...
What is 'Underwater' An option that would be worthless if it expired today. An underwater option may be either a call or put option. A call option is underwater when its strike price is higher than the...
When a company offers its stock to the public for the first time, it's called an initial public offering, or IPO. IPOs can be a great opportunity for investors, but only if the stock is priced correctly. When a...
DefinitionBankruptcy is a legal status of a person or other entity that cannot repay debts to creditors. In most jurisdictions, bankruptcy is imposed by a court order, often initiated by the debtor. Bankruptcy is not the only legal status...
What are 'Mandatorily Redeemable Shares'
Mandatorily redeemable shares are shares owned by an individual or entity which are required to be redeemed for cash or another such property at a stated time or following a specific event. Mandatorily reedemable shares...
What is an 'Underlying Asset'
An underlying asset is the security or commodity underlying a Derivative. The most common type of derivative is a futures contract, and the underlying asset for futures contracts can be anything from agricultural products to...
DefinitionCommon stock is a form of corporate equity ownership, a type of security. The terms voting share and ordinary share are also used frequently in other parts of the world; "common stock" being primarily used in the United States....
What is the 'Real Gross Domestic Product (GDP)' Real gross domestic product (GDP) is an inflation-adjusted measure that reflects the value of all goods and services produced by an economy in a given year, expressed in base-year...