Glossary
UCITS
Acronym used in European legislation, refers to “Undertakings for Collective Investment in Transferable Securities”, for investment funds that are harmonised at EU level.
Underwriter
An investment bank which presents a share offering to potential investors. See firm commitment underwriting, best efforts underwriting.
Underwriter’s warrants
Warrants sometimes granted to underwriters as a form of additional compensation in a public offering, typically in a smaller, higher risk offering.
Underwriting Agreement
The document in which the underwriters of a public offering commit, in a best efforts offering, to use their best efforts to sell the securities, or, in a firm commitment offering, to purchase from the issuer the securities that are the subject of the public offering.
Underwriting discount (or commission or spread)
The difference between the price at which underwriters buy securities from the issuer in a firm commitment public offering and the public offering price.
Unique Selling Proposition (USP)
The key differentiating factor for buying your product, compared to that of a competitor.
Unsecured debt
Loans not secured against a company’s assets.
Upper half
Comprises funds with an IRR equal to or above median point.
Upper quartile
The point at which 25% of all returns in a group are greater and 75% are lower.
