Undue Influence

• Undue influence occurs when someone uses a position of power, trust, or authority to impair another person’s free will and obtain an unfair…

Undivided Account

Key takeaways – An undivided account (often called an eastern account) is an IPO underwriting arrangement in which multiple underwriters form a syndicate and…

Undivided Profit

Undivided profits are corporate earnings from current and past years that have not yet been assigned to a surplus account or paid out as…

Undisclosed Reserves

• Undisclosed reserves are “hidden” forms of capital that do not appear on a bank’s publicly reported balance sheet but are treated by some…

Underwriting Spread

An underwriting spread is the difference between (a) the amount an underwriter (usually an investment bank or a syndicate of banks) pays the issuing…

Underwriting Standards

Underwriting standards are the written and practical guidelines a lender (or insurer) uses to decide whether to extend credit, the terms on which it…

Underwriting Risk

Underwriting risk is the risk of loss an underwriter bears when they issue contracts—most commonly insurance policies or securities offerings. It arises when the…

Underwriting Income

Key takeaways – Underwriting income is the profit (or loss) produced by an insurer’s core insurance operations: premiums earned minus claims paid and underwriting…

Underwriting Group

An underwriting group (also called a syndicate, distributing syndicate, or purchase group) is a temporary association of investment banks, broker‑dealers, and other financial intermediaries…

Underwriting Expenses

Summary Underwriting expenses are the costs incurred in the process of evaluating, issuing, and servicing insurance policies or underwriting securities. They are a major…