Glossary: U

UKLA

The Financial Services Authority acting in its capacity as the United Kingdom Listing Authority (UKLA).

Uncrossing Trade

This is used for the single uncrossing trade, detailing the total executed volume and uncrossing price as a result of a SETS auction.

Underlying - covered warrant

The asset on which the covered warrant is based and derives its value. The underlying may be a security (such as shares), a share index (e.g. FTSE 100), a commodity or a currency. Some warrants are based on a 'basket' of underlyings, which gives an invest

Underlying asset

The value of a derivative instrument depends on the performance of the underlying asset or security. These may be commodity derivatives such as gold, sugar, jute, pepper, iced broilers or coffee. They could also be financial in nature such as stocks, bonds, gilts, currencies and money market instruments.

Underlying share price (see Underlying Asset)

Underwriter (see Underwriting)

Underwriting

An arrangement by which a company is guaranteed that an issue of shares will raise a given amount of cash. Underwriters undertake to subscribe for any of the issue not taken up by the public. They charge commission for this service.

Unit trusts

These are open-ended funds where private investors pool their money to be invested in a portfolio of securities. Unit trusts issue units to investors.
Units Unit trusts issue units in response to demand. Being open-ended, unit price is closely aligned to the net asset value (NAV) of the fund.
Unlimited liability When a promoter is fully liable for the debts of the business, it is called unlimited liability.

USD

US Dollars

USM

Unlisted Securities Market (USM) set up in 1980 to provide an easier route to the market for small or new companies. The market closed at the end of 1996. (USM companies could move to the main market or AIM.)