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UGMA: Uniform Gifts to Minors Act. Law allowing assets to be distributed and administered in the name of a child. The assets distributed as gifts can only be cash and securities.

Underwriting: Practice of assuming the risk of buying a new issue of securities from the issuing corporation or government entity and reselling them to the public either directly or through dealers.

Unit Investment Trust: A UIT is a fixed portfolio containing income-producing securities issued by corporations, the U.S. Government or a municipality, depending on the objective of the trust.

Unlisted Securities: Stocks and bonds not listed on a national or regional stock exchange that are traded in the over-the-counter market.

Unrealized Capital Gain/Loss: Appreciation or depreciation in the value of a security that has not been sold.

Unsecured Obligation: Debt not backed by collateral.

UTMA: Uniform Transfers to Minors Act. Law allowing assets such as real estate, paintings, royalties and patents to be distributed and administered in the name of a child.

U.S. Treasury Securities: Debt obligations issued by the U.S. Government with various face values and maturity dates. Income is generally exempt from state and local but not federal taxes.

U.S. Treasury Bill: Short-term obligation issued by the U.S. Government in maturities of 3 months, 6 months and 1 year, issued at a discount from face value.

U.S. Treasury Bond: Long-term debt obligation issued by the U.S. Government in denominations of $1,000 with a maturity of 10 years or longer.

U.S. Treasury Note: Debt obligation issued by the U.S. Government in denominations of $1,000–$1,000,000 or more with a maturity of 1-10 years.