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Uncovered/naked
A writer (seller) of an option which is not covered by an opposite position in the underlying instrument.
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Undersubscribed
A situation that arises when people have applied for fewer shares than are available in a new issue. In such a case the underwriter has to take up the balance of the issue.
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Underwriters
A person, or institution, who examines a risk, takes a decision as to whether to take on the risk, then works out the premium to be charged, usually on the basis of the frequency of past claims. In the case of new issues an issuing house guarantees to take up the undersubscribed shares for a commission.
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Unitised Collective Investment Scheme
A type of collective investment scheme e.g. OIECS, Unit Trusts, SICAVS, etc.
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Unsecured Loan Stock
Domestic bonds which are not secured on any assets of the borrower.