Analyst rate of a security that reflects opinion that its will stay behind the market.

An option that can be paid off if the reference asset underperforms against a strike price . Refer to outperformance spread and spread option .

Situation where an item’s cost is below the projected cost.

Person’s name appearing at the end of the document, subscriber.

This phrase refers to the people who have signed their names to a document.

This means to comprehend, to know, to be aware of and to have the knowledge.

In the law of contracts. This is a loose and ambiguous term, unless it be accompanied by some expression to show that it constituted a meeting of the minds of […]

Hotel guest checking out earlier than the scheduled date of departure.

The phrase “it is understood,” when employed as a word of contract in a written agreement, has the same force as the words “it is agreed.” lliggiu- son v. Weld, […]

This means to guarantee, to engage in, set about to do, to promise and to perform.

A promise, engagement, or stipulation . Each of the promises made by the parties to a contract, considered independently and not as mutual, may, in this sense, be denominated an […]

Agreed; assumed. Tills is the technical word to be used in alleging the promise which forms the basis of an action of assumpsit.

A security with a price expected to rise due to it trading lower than is justified by its estimated and current earnings. See Bottom fishing ; Value investing .

When an option is worthless. A market position that will result in loss if sold.

Loan under book value due to its (1) not performing, (2) low interest rate below market rate, (3) collateral market value decreases to less than loan balance outstanding or (4) […]

Situation that has arisen when a portfolio’s investment are lower in proportion to the financial market’s share of capitalisation. Opposite of overweight.

1. General. Document that is signed at the end to signify agreement , correctness or truth of contents. 2. Banking. Evaluating risk for lending by analysing loan contract details. 3. […]

The person who Insures another in a fire or life policy ; the insurer. See Childs v. Firemen’s Ins. Co., 0(3 Minn. 303, 09 N. W. 141, 35 L. R. […]

World’s largest not-for profit organisation for safety testing products with a global recognition and acceptance.

Issuing securities on the primary market for an issuer. Or the act of predicting risk to ensure the possible gains are worth the risk. Refer to allornone underwriting , best […]

Contract for purchase of securities between the underwriter and the issuer of bonds.

Exposure to loss from inappropriate selection and approval of insurance risks.

Maximum amount of loss exposure insured by the insurer.

Fee charged by mortgage lender ‘s to verify loan application information and to make the final decision on loan approval.

The net amount earned from underwriting activities.