Glossary - U

underinsurance

When there is not enough insurance to cover the value of the insured property.

unencumbered

An asset that has no money owing on it and no individual or entity has any claim over the asset.

unhedged

An investment fund where no steps have been taken to limit the effect of currency fluctuations on overseas investment returns.

unit price

The value of a company or investment expressed as a single unit. A unit is similar to a company share.

unit trust

A legal structure that holds assets for the benefit of unit holders. A trustee administers the trust, makes decisions about trust assets and is responsible for distributing income and capital according to the number of units each investor holds. Any profits made by the trust must be distributed to unit holders at the end of the financial year.

unlisted mortgage scheme

A mortgage scheme that is not listed on a public market, such as the Australian Securities Exchange.

unlisted property trust

A property trust that is not listed on a public market, such as the Australian Securities Exchange.

unsecured loan

A loan for which no asset has been used as security. The interest rate is usually higher than for a secured loan as there is a higher risk to the lender of not getting their money back.

unsecured note

A type of fixed interest investment issued by a company whereby it promises to pay regular interest payments and return the capital at the end of the investment term. There is no security offered for the investment.

unsolicited calls

An unexpected call or visit by an unknown person, trying to sell something.

 


Last updated: 18 Nov 2015