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U.S. Government Issues:

Debt issued by the U.S. Treasury or other government agencies (Ginnie Mae, Fannie Mae, Freddie Mac, etc.). U.S. Treasury issues include T-Bills, T-Notes, and T-Bonds.

U.S. Savings Bond:

A non-negotiable, non-transferable government debt security that may not be used as collateral. These bonds range in face value from $50 to $10,000.

Uncovered call option writing:

A short call option position in which the writer does not own an equivalent position in the underlying security represented by his option contracts.

Uncovered put option writing:

A short put option position in which the writer does not have a corresponding short position in the underlying security or has not deposited, in a cash account, cash or cash equivalents equal to the exercise value of the put.

Uncovered Option:

A short option position that is not fully collateralized if notification of assignment is received. A short call position is uncovered if the writer does not have a long stock or long call position. A short put position is uncovered if the writer is not short stock or long another put.

Underlying Security (stock):

The stock subject to being purchased or sold upon exercise of an option contract.

Undervalued Security:

A security whose price is below what a market analyst calculates it should be based on fundamentals such as earnings potential, cash flow, and hidden assets.

Underwriting:

The process by which investment bankers bring new issues to the market.

Undistributed Earnings:

The same as retained earnings. It is earnings that are not paid as dividends, but reinvested in the company.

Unissued Stock:

Stock authorized by a company's charter but not yet issued. Contrast with treasury stock, which has been issued and than bought back.

Unit Investment Trust:

An unmanaged portfolio of investments put together by an investment adviser. It usually consists of bonds, and is sold to investors as a unit which is a fractional ownership of the total package. Units of a trust usually sell for $1,000 including sales commission and are normally not attractive for short-term trading.

Unit:

Tradable component of an asset: share for stocks and mutual funds, $1000 quantity for most bonds, and contract for options and futures.

Unlisted Security:

A stock or bond not listed on an exchange which trades in the over-the-counter market.

Unpaid Dividend:

A dividend that has been declared by a corporation but not yet paid.

Uptick:

A listed equity trade at a price that is higher than that of the last sale.

Unsecured Debt:

Obligation not backed by the pledge of specific collateral.