Unadjusted Basis
What is 'Unadjusted Basis' A basis used for depreciation purposes. Unadjusted basis uses the original cost of property or equipment without regard to salvage value. Explaining 'Unadjusted Basis' This method of calculating depreciation is used for accelerated cost recovery systems (ACRS) and modified accelerated cost recovery systems (MACRS). Further Reading The early...
Ultra-Short Bond Fund
What is an Ultra-Short Bond Fund Ultra-short bond funds are a type of fixed income mutual fund that invests in bonds with short-term maturities, typically one year or less. These funds offer higher yields than money market funds, but they also carry more risk since they are subject to interest rate changes. As a result, ultra-short bond funds are often...
Undercast
What is 'Undercast' A forecasting error that occurs when estimating items such as future cash flows, performance levels or production. Undercasting produces an estimation that is below the realized value. Explaining 'Undercast' There are a number of factors that may lead to undercasting values. The primary reason for undercasting involves using the wrong inputs....
Undated Issue
What is 'Undated Issue' A government bond that has no maturity date, and pays interest in perpetuity. While the government can redeem an undated issue if it so chooses, since most existing undated issues have very low coupons, there is little or no incentive for redemption. Undated issues are treated as equity for all practical purposes due...
Underfunded Pension Plan
What is an underfunded pension plan and how does it happen An underfunded pension plan happens when a company doesn't have enough money set aside to cover the costs of employee pensions. This can happen for a number of reasons, including poor investment returns, unexpected increases in life expectancy, or simply not putting enough money into the plan on an...
Underinsurance
What is underinsurance and why do people buy it Underinsurance is insurance that does not cover the full value of an insured asset. For example, if a homeowner has a house valued at $200,000 but carries insurance coverage of only $100,000, the homeowner is said to be underinsured by $100,000. There are several reasons why people buy underinsurance. One reason is...
Undervalued
What does 'Undervalued' mean Undervalued is a financial term referring to a security or other type of investment that is selling for a price presumed to be below the investment's true intrinsic value. A undervalued stock can be evaluated by looking at the underlying company's financial statements and analyzing its fundamentals, such as cash flow, return on...
Unallocated Benefit
Most people have heard of unallocated benefits, but don't really know what they are or how they work. In this post, we will explore what unallocated benefits are and how to calculate them. We will also discuss the benefits of unallocated benefits and how to allocate them. Finally, we will answer some common questions about the topic. What is an...
Umbrella Personal Liability Policy
What is 'Umbrella Personal Liability Policy' A type of insurance policy that provides excess coverage above and beyond the liability coverage amounts in a standard insurance policy. The umbrella policy provides extra protection in the event that a lawsuit exceeds the basic level of coverage in the standard policy. Explaining 'Umbrella Personal Liability Policy' ...
Undersubscribed
What is 'Undersubscribed' A situation in which the demand for an initial public offering of securities is less than the number of shares issued. Also known as an "underbooking". Explaining 'Undersubscribed' Typically, the goal of a public offering is to price the security issue at the exact price at which all the issued shares...