commercial activities

Treasury stock


Stock that has been reacquired by the issuing corporation. While held by the issuer, the stock is considered issued but not outstanding, and is not considered in measuring the value of outstanding common shares.

Tying arrangement


An agreement in which the seller conditions the sale of one product (the "tying" product) on the buyer's agreement to purchase a separate product (the "tied" product) from the seller. Alternatively, it is also considered a tying arrangement...

Uncommitted credit facility

Uncommitted credit facilities are a short-term credit facility which are subject to the discretion of both the borrower and the lender. That is, the creditor has no obligation to extend credit to the borrower, and the borrower has no...

Uncovered option


See Naked Option.


Undercapitalization means that a company does not have enough capital to conduct ordinary business operations. Undercapitalization may also lead to the company being unable to pay its creditors. Among other causes, undercapitalization may...

undersecured debt

An undersecured debt is a debt secured by collateral with a lower value than the total amount of the claim. From the debtor’s perspective, the obligation owed to the creditor has a higher value than the collateral given by the debtor to...


Underwrite can refer to one of many different kinds of financial risk taking. Broadly, underwrite means agreeing to some form of financial investment with the possibility of profits or losses. A few examples of underwriting include loans,...


An employee of an insurance company who is responsible for determining whether to issue a policy and how much to charge for the coverage provided. A person who buys stock from the issuer with an intent to resell it to the public. A person or entity...


The act of assuming a risk by insuring it, e.g., the insurance of life or property. The act of agreeing to buy all or part of a new issue of securities to be offered for public sale.

See also underwriter; insurance; Securities

unearned income

Definition from Nolo’s Plain-English Law DictionaryIncome from investments, such as interest, dividends, or capital gains, or any other income that isn't compensation for services.

Definition provided by Nolo’s Plain-English Law Dictionary.