Undersubscribed

Key takeaways – “Undersubscribed” means demand for a securities offering (for example, an IPO) is lower than the number of shares offered. – Common…

Under Reporting

Key takeaways – Underreporting means intentionally (or sometimes negligently) reporting less income or revenue than actually received to reduce tax liability. – It is…

Underpricing

Summary Underpricing is the practice of pricing an initial public offering (IPO) below the price that the market ultimately assigns when trading begins. If…

Underperform

Key takeaways – “Underperform” describes a security or sector that is doing worse than its benchmark or peers—either gaining less in an up market…

Underpayment Penalty

An underpayment penalty is charged by the Internal Revenue Service (IRS) when you don’t pay enough federal tax during the year through withholding and/or…

Underlying Security

An underlying security (commonly called “the underlying”) is the asset on which a derivative instrument is based. Derivatives — such as options, futures, swaps,…

Underlying Retention

Summary Underlying retention is the portion of insurance risk an insurer (the ceding company) keeps on its books after transferring the remainder to a…

Underlying Profit

Underlying profit is a non‑GAAP measure companies calculate internally to show what they consider a truer, recurring level of profitability from normal business operations.…

Underlying Mortality Assumption

An underlying mortality assumption is an actuary’s estimate of current and future death rates for a defined population. It is typically expressed via a…

Underlying Debt

• Underlying debt is a municipal finance concept describing smaller local entities’ obligations that are effectively borne, or credit-supported, by a larger government within…