Undercapitalization

Undercapitalization

Why Is Undercapitalization a Problem? And How You Can Fix It Undercapitalization is a condition in which a business does not have enough funds to...
unconsolidated subsidiary

Unconsolidated Subsidiary

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...

Unsecured Loan

DefinitionIn finance, unsecured debt refers to any type of debt or general obligation that is not protected by a guarantor, or collateralized by a...
uncovered option

Uncovered Option

An uncovered option is a type of option contract that is not hedged by an opposite position in the underlying security. This leaves the...

Underwater

What is 'Underwater' An option that would be worthless if it expired today. An underwater option may be either a call or...
underpricing

Underpricing

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...

Bankruptcy

DefinitionBankruptcy is a legal status of a person or other entity that cannot repay debts to creditors. In most jurisdictions, bankruptcy is imposed by...

Mandatorily Redeemable Shares

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...
underlying asset

Underlying Asset

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...

Common Stock

DefinitionCommon stock is a form of corporate equity ownership, a type of security. The terms voting share and ordinary share are also used frequently...