Dictionary_of_Banking_and_Finance

touch /t tʃ/ noun the narrowest spread between the buy and sell prices of a share

tour /tυə/ noun a (holiday) journey to various places, coming back in the end to the place the journey started from

The group went on a tour of Italy. The minister went on a fact-finding tour of the region. to carry out a tour of inspection to visit various places, such as offices or factories, to inspect them

tout /taυt/ noun a person who sells tickets (to games or shows) for more than the price printed on them verb to tout for custom to try to attract customers

track /tr k/ verb to follow someone or something; to follow how something develops, such as one of the stock market indices This fund tracks the Footsie Index.

‘…tracking the stock market is a good way of providing for the long term, if you’re prepared to ride the ups and downs’ [Investors Chronicle]

tracker fund / tr kə f nd/ noun a fund which tracks (i.e. follows closely) one of the stock market indices, such as the Footsie

tracker PEP / tr kə pep/ noun a PEP invested in funds which track a stock market index

tracking / tr k ŋ/ noun the process of following a stock market closely

tracking unit trust / tr k ŋ ju n t tr st/ noun a trust which follows closely one of the stock market indices

track record / tr k rekɔ d/ noun the success or failure of a company or salesperson in the past He has a good track record as a secondhand car salesman. The company has no track record in the computer market. We are looking for someone with a track record in the computer market.

trade /tre d/ noun 1. the business of buying and selling adverse balance of trade situation when a country imports more than it exports The country had an adverse balance of trade for the second month running. to do a good trade in a range of products to sell a large number of a range of products 2. a particular type of business, or people or companies dealing in the same type of product He’s in the secondhand car trade. She’s very well known in the

clothing trade. to ask a company to supply trade references to ask a company to give names of traders who can report on the company’s financial situation and reputation verb to buy and sell, to carry on a business We trade with all the countries of the EU. He trades on the Stock Exchange. The company has stopped trading. The company trades under the name ‘Eeziphitt’.

‘…a sharp setback in foreign trade accounted for most of the winter slowdown. The trade balance sank $17 billion’ [Fortune]

‘…at its last traded price, the bank was capitalized around $1.05 billion’ [South China Morning Post]

‘…with most of the world’s oil now traded on spot markets, Opec’s official prices are much less significant than they once were’ [Economist]

‘…the London Stock Exchange said that the value of domestic UK equities traded during the year was £1.4066 trillion, more than the capitalization of the entire London market and an increase of 36 per cent compared with previous year’s total of £1.037 trillion’ [Times]

‘…trade between Britain and other countries which comprise the Economic Community has risen steadily from 33% of exports to 50% last year’ [Sales & Marketing Management]

trade agreement / tre d ə-

ri mənt/ noun an international agreement between countries over general terms of trade

trade association / tre d əsəυsi-

e ʃ(ə)n/ noun a group which links together companies in the same trade

trade barrier / tre d b riə/ noun a limitation imposed by a government on the free exchange of goods between countries. Also called import restric-

tion (NOTE: NTBs, safety standards and tariffs are typical trade barriers.)

trade bill / tre d b l/ noun a bill of exchange between two companies who are trading partners (it is issued by one company and endorsed by the other)

trade bureau / tre d bjυərəυ/ noun an office which specialises in commercial inquiries

trade commission / tre d kə-

m ʃ(ə)n/ noun same as broker’s commission

trade counter / tre d kaυntə/ noun a shop in a factory or warehouse where goods are sold to retailers

trade credit / tre d kred t/ noun a credit offered by one company when trading with another

trade creditors / tre d kred təz/ plural noun companies which are owed money by a company (the amount owed to trade creditors is shown in the annual accounts)

trade cycle / tre d sa k(ə)l/ noun a period during which trade expands, then slows down, then expands again

trade deficit / tre d def s t/ noun the difference in value between a country’s low exports and higher imports. Also called balance of payments def-

icit, trade gap

trade description /tre d d -

skr pʃən/ noun a description of a product to attract customers

Trade Descriptions Act / tre d d -

skr pʃənz kt/ noun an act which limits the way in which products can be described so as to protect customers from wrong descriptions made by manufacturers

trade directory / tre d da rekt(ə)ri/ noun a book which lists all the businesses and business people in a town

trade discount /tre d d skaυnt/ noun a reduction in price given to a customer in the same trade

traded options / tre d d ɒpʃənz/ plural noun options to buy or sell shares at a certain price at a certain date in the future, which themselves can be bought or sold

trade fair / tre d feə/ noun a large exhibition and meeting for advertising and selling a specific type of product

There are two trade fairs running in London at the same time – the carpet manufacturers’ and the mobile telephones.

trade gap / tre d p/ noun same as trade deficit

trade in / tre d n/ verb to give in an old item as part of the payment for a new one The chairman traded in his old Rolls Royce for a new model.

trade-in / tre d n/ noun an old item, e.g. a car or washing machine, given as part of the payment for a new one She bought a new car and gave her old one as a trade-in.

trademark / tre dmɑ k/, trade name

/ tre d ne m/ noun a particular name, design design or symbol which has been registered by the manufacturer and which cannot be used by other manufacturers. It is an intangible asset. You can’t call your beds ‘Softn’kumfi’ – it is a registered trademark. verb to register something as a trademark They trademarked the name after the family dispute. You should trademark the design.

trade mission / tre d m ʃ(ə)n/ noun a visit by a group of businesspeople to discuss trade He led a trade mission to China.

trade-off / tre d ɒf/ noun an act of exchanging one thing for another as part of a business deal (NOTE: The plural is

trade-offs.)

trade price / tre d pra s/ noun a special wholesale price paid by a retailer to the manufacturer or wholesaler

trader / tre də/ noun 1. a person who does business 2. a person who buys or sells stocks, shares and options

trade surplus /tre d s% pləs/ noun the difference in value between a country’s high exports and lower imports

‘Brazil’s trade surplus is vulnerable both to a slowdown in the American economy and a pick-up in its own’ [Economist]

trade terms / tre d t% mz/ plural noun a special discount for people in the same trade

trade-weighted index /tre dwe t d ndeks/ noun an index of the

value of a currency calculated against a basket of currencies

trading / tre d ŋ/ noun 1. the business of buying and selling adverse trading conditions bad conditions for trade 2. an area of a broking house where dealing in securities is carried out by phone, using monitors to display current prices and stock exchange transactions

trading account / tre d ŋ ə kaυnt/ noun an account of a company’s gross profit

trading area / tre d ŋ eəriə/ noun a group of countries which trade with each other

trading company / tre d ŋ

k mp(ə)ni/ noun a company which specialises in buying and selling goods

trading estate / tre d ŋ ste t/ noun an area of land near a town specially for building factories and warehouses

trading firm / tre d ŋ f% m/ noun a stockbroking house

trading floor / tre d ŋ flɔ / noun same as dealing floor

trading for the account / tre d ŋ fə ði ə kaυnt/ noun same as account

trading

trading limit / tre d ŋ l m t/ noun the maximum amount of something which can be traded by a single trader

trading loss / tre d ŋ lɒs/ noun a situation where a company’s receipts are less than its expenditure

trading partner / tre d ŋ pɑ tnə/ noun a company or country which trades with another

trading pattern / tre d ŋ p t(ə)n/ noun a general way in which trade is carried on The company’s trading pattern shows high export sales in the first quarter and high home sales in the third quarter.

trading post / tre d ŋ pəυst/ noun a position on the trading floor of the New York Stock Exchange, where specialist traders operate

trading profit / tre d ŋ prɒf t/ noun a result where the company’ receipts are higher than its expenditure

trading range / tre d ŋ re nd$/ noun same as historical trading range

trading screens / tre d ŋ skri nz/ plural noun computer monitors listing stock market prices

trading session / tre d ŋ seʃ(ə)n/ noun one period (usually a day) during which trading takes place on a stock exchange

trading stamp / tre d ŋ st mp/ noun a special stamp given away by a shop, which the customer can collect and exchange later for free goods

trailing spouse / tre l ŋ spaυs/ noun US a successful working spouse of someone who works abroad (one of the two has to commute at weekends)

trainee /tre ni / noun a person who is learning how to do something We take five graduates as trainees each year. Office staff with leadership potential are

selected for courses as trainee managers. We employ an additional trainee accountant at peak periods.

traineeship /tre ni ʃ p/ noun a post as a trainee

training / tre n ŋ/ noun the process of being taught how to do something

There is a ten-week training period for new staff. The shop is closed for staff training. After six months’ training he thought of himself as a professional salesman.

training levy / tre n ŋ levi/ noun a tax to be paid by companies to fund the government’s training schemes

training officer / tre n ŋ ɒf sə/ noun a person who deals with the training of staff in a company

training unit / tre n ŋ ju n t/ noun a special group of teachers who organise training for companies

tranche /trɑ nʃ/ noun one of a series of instalments (used when referring to loans to companies, government securities which are issued over a period of time, or money withdrawn by a country from the IMF) The second tranche of interest on the loan is now due for payment.

tranchette /trɑ n ʃet/ noun a small amount of government stock put onto the market for sale to investors

transact /tr n z kt/ verb to transact business to carry out a piece of business

transaction /tr n z kʃən/ noun a transaction on the Stock Exchange a purchase or sale of shares on the Stock Exchange The paper publishes a daily list of Stock Exchange transactions. fraudulent transaction a transaction which aims to cheat someone

‘…the Japan Financial Intelligence Office will receive reports on suspected criminal transactions from financial institutions, determine where a probe should be launched and provide information to investigators’ [Nikkei Weekly]

transfer noun / tr nsf% / an act of moving an employee to another job in the same organisation She applied for a transfer to our branch in Scotland. verb /tr ns f% / to move someone or something to a different place, or to move someone to another job in the same organisation The accountant

was transferred to our Scottish branch.He transferred his shares to a family trust. She transferred her money to a deposit account.

transferable adjective /tr ns-

f% rəb(ə)l/ which can be passed to someone else noun a document such as a bearer bond which can be passed to someone else

transfer of property / tr nsf% əvprɒpəti/, transfer of shares

/ tr nsf% əv ʃeəz/ noun the act of moving the ownership of property or shares from one person to another

transferred charge call /tr ns-

f% d tʃɑ d$ kɔ l/ noun a phone call where the person receiving the call agrees to pay for it

transfer value / tr nsf% v lju / noun the value of a pension when it is moved from one scheme to another

transit / tr ns t/ noun the movement of passengers or goods on the way to a destination Some of the goods were damaged in transit.

transit letter / tr ns t letə/ noun a letter sent with cheques or drafts, listing what is being sent

translate /tr ns le t/ verb to change something into another form

transnational /tr nz n ʃ(ə)nəl/ noun same as multinational

transparency /tr ns p rənsi/ noun the fact of being clear about making decisions and being open to the public about how decisions are reached

traveller’s cheques / tr v(ə)ləz tʃeks/ plural noun cheques bought by a

traveller which can be cashed in a foreign country

travelling expenses / tr v(ə)l ŋ ek spens z/ plural noun money spent

on travelling and hotels for business purposes

travel organisation / tr v(ə)l ɔ əna ze ʃ(ə)n/ noun a body repre-

senting companies in the travel business

treasurer / tre$ərə/ noun 1. a person who looks after the money or finances of a club or society, etc. 2. US the main financial officer of a company 3. (in Australia) the finance minister in the government

treasurer’s account / tre$ərəz ə-

kaυnt/ noun an account of a club or society with a bank

Treasuries / tre$əriz/ plural noun US treasury bonds and bills (informal)

Treasury / tre$əri/ noun 1. a government department which deals with the country’s finance (NOTE: The term is

used in both the UK and the US; in most other countries this department is called the Ministry of Finance.) 2. US same as Treasury bill

Treasury bill / tre$əri b l/ noun a short-term financial instrument which does not give any interest and is sold by the government at a discount through the central bank (in the UK, their term varies from three to six months; in the USA, they are for 91 or 182 days, or for 52 weeks) (NOTE: In the USA, they are

also called Treasuries or T-bills.)

Treasury bond / tre$əri bɒnd/ noun a long-term bond issued by the British or US government

Treasury note / tre$əri nəυt/ noun a medium-term bond issued by the US government

Treasury Secretary / tre$ərisekrət(ə)ri/ noun US the member of

the US government in charge of finance

(NOTE: The equivalent of the Finance Minister in most countries, or of the

Chancellor of the Exchequer in the UK.)

Treasury stocks / tre$əri stɒkz/ plural noun stocks issued by the British government. Also called Exchequer

stocks

treble / treb(ə)l/ verb to increase three times, or to make something three times larger The company’s borrowings have trebled. The acquisition of the chain of stores has trebled the group’s turnover. adverb three times Our borrowings are treble what they were last year.

trend /trend/ noun a general way in which things are developing a downward trend in investment There is a trend away from old-established food stores. The report points to inflationary trends in the economy. We notice a general trend towards selling to the student market. We have noticed an upward trend in sales.

‘…the quality of building design and ease of accessibility will become increasingly important, adding to the trend towards out-of-town office development’ [Lloyd’s List]

trend line / trend la n/ noun a line on a graph or chart which shows which way a trend is going

trial / tra əl/ noun 1. a court case to judge a person accused of a crime He is on trial or is standing trial for embezzlement. 2. a test to see if something is good verb to test a product to see how

good it is (NOTE: trialling – trialled)

trial balance / tra əl b ləns/ noun the draft calculation of debits and credits to see if they balance

tribunal /tra bju n(ə)l/ noun an official court which examines special problems and makes judgements

trigger / tr ə/ noun a thing which starts a process verb to start a process

‘…the recovery is led by significant declines in short-term interest rates, which are forecast to be roughly 250 basis points below their previous peak. This should trigger a rebound in the housing markets and consumer spending on durables’ [Toronto Globe & Mail]

trigger point / tr ə pɔ nt/ noun a point in acquiring shares in a company where the purchaser has to declare an interest or to take certain action

COMMENT: If an individual or a company buys 5% of a company’s shares, this shareholding must be declared to the company. If 15% is acquired it is assumed that a takeover bid will be made, and no more shares can be acquired for seven days to give the target company time to respond. There is no obligation to make a bid at this stage, but if the holding is increased to 30%, then a takeover bid must be made for the remaining 70%. If 90% of shares are owned, then the owner can purchase all outstanding shares compulsorily. These trigger points are often not crossed, and it is common to see that a company has acquired 14.9% or 29.9% of another company’s shares.

trillion / tr ljən/ noun one million millions (NOTE: In the UK, trillion now has

the same meaning as in the USA; formerly in UK English it meant one million million millions, and it is still sometimes used with this meaning; see also the note at billion.)

‘…if land is assessed at roughly half its current market value, the new tax could yield up to ¥10

trillion annually’ [Far Eastern Economic Review]

‘…behind the decline was a 6.1% fall in exports to ¥47.55 trillion, the second year of falls. Automobiles and steel were among categories showing particularly conspicuous drops’ [Nikkei Weekly]

‘…the London Stock Exchange said that the value of domestic UK equities traded during the year was £1.4066 trillion, more than the capitalization of the entire London market and an increase of 36 per cent compared with previous year’s total of £1.037 trillion’ [Times]

triple / tr p(ə)l/ verb to become three times larger, or to multiply something three times The company’s debts tripled in twelve months. The acquisition of the chain of stores has tripled the group’s turnover. adjective three times as much The cost of airfreighting the goods is triple their manufacturing cost.

triple A rated / tr p(ə)l e re t d/ adjective referring to a bond or corporation which has the highest credit rating according to Standard & Poor’s or Moody’s (so called, because the rating is ‘AAA’)

triple witching hour / tr p(ə)lw tʃ ŋ aυə/ noun a day when three

major types of futures contract fall due at the same time

COMMENT: In the USA, this is the last hour of trading on the third Friday of the months of March, June, September and December, when futures contracts on the Stock Exchange Index, options on these futures contracts, and ordinary stock option contracts all fall due; in the UK, it is a day when euro-options, Footsie options and Footsie futures contracts all expire at the same time. It is normally a day when stock market prices show greater volatility than usual.

triplicate / tr pl kət/ noun in triplicate with an original and two copies

The invoices are printed in triplicate. The application form should be completed in triplicate. invoicing in triplicate the preparing of three copies of invoices

trophy hunter / trəυfi h ntə/ noun an investor who looks for cheap shares

troubled / tr b(ə)ld/ adjective in a difficult financial position

troubleshooter / tr b(ə)lʃu tə/ noun a person whose job is to solve problems in a company They brought

in a troubleshooter to try to sort out the management problems.

trough /trɒf/ noun a low point in the economic cycle

troy ounce /trɔ aυns/ noun a measurement of weight (= 31.10 grammes)

(NOTE: In writing, often shortened to troy oz. after figures: 25.2 troy oz.)

troy weight /trɔ we t/ noun a system of measurement of weight used for gold and other metals, such as silver and platinum

COMMENT: Troy weight is divided into grains, pennyweights (24 grains = 1 pennyweight), ounces (20 pennyweights = 1 ounce) and pounds (12 troy ounces = 1 pound). Troy weights are slightly less than their avoirdupois equivalents; the troy pound equals 0.37kg or 0.82lb avoirdupois; see also avoirdupoids.

true /tru / adjective correct or accurate

true and fair view / tru ən feəvju / noun a correct statement of a company’s financial position as shown in its accounts and confirmed by the auditors

true copy /tru kɒpi/ noun an exact copy I certify that this is a true copy.It is certified as a true copy.

truncate /tr ŋ ke t/ verb to operate a simplified banking system by not returning physical cheques to the paying bank

truncation /tr ŋ ke ʃ(ə)n/ noun a simplified banking system, where actual cheques are not sent to the paying bank, but held in the receiving bank which notifies the paying bank by computer of the details of cheques received

trust /tr st/ noun 1. the fact of being confident that something is correct or will work we took his statement on trust we accepted his statement without examining it to see if it was correct 2. a legal arrangement to pass goods, money or valuables to someone who will look after them well He left his property in trust for his grandchildren. 3. the management of money or property for someone They set up a family trust for their grandchildren. 4. US a small group of companies which control the supply of a product verb to trust someone with something to give something to someone to look after Can he be trusted with all that cash?

trustbusting / tr stb st ŋ/ noun US the breaking up of monopolies to encourage competition

trust company / tr st k mp(ə)ni/ noun US an organisation which supervises the financial affairs of private trusts, executes wills, and acts as a bank to a limited number of customers

trust deed / tr st di d/ noun a document which sets out the details of a private trust

trustee /tr sti / noun a person who has charge of money in trust the trustees of the pension fund

trust fund / tr st f nd/ noun assets (money, securities, property) held in trust for someone

Truth in Lending Act / tru θ nlend ŋ kt/ noun a US Act of 1969,

which forces lenders to state the full terms of their interest rates to borrowers

tugrik / tu r k/ noun a unit of currency used in the Mongolian Republic

tune /tju n/ noun the bank is backing him to the tune of £10,000 the bank is helping him with a loan of £10,000

turkey / t% ki/ noun a bad investment, an investment which has turned out to be worthless (informal)

turn /t% n/ noun 1. a movement in a circle, or a change of direction 2. a profit or commission He makes a turn on everything he sells.

turnaround / t% nəraυnd/ noun especially US same as turnround

turn down / t% n daυn/ verb to refuse something The board turned down the proposal. The bank turned down their request for a loan. The application for a licence was turned down.He turned down the job he was offered.

turnkey operation / t% nki ɒpə-

re ʃ(ə)n/ noun a deal where a company takes all responsibility for constructing, fitting and staffing a building (such as a school, hospital or factory) so that it is completely ready for the purchaser to take over

turn over / t% n əυvə/ verb 1. to have a specific amount of sales We turn over £2,000 a week. 2. US to pass something to someone She turned over the documents to the lawyer.

(NOTE: In this meaning, the usual UK term is hand over.)

‘…a 100,000 square foot warehouse can turn its inventory over 18 times a year, more than triple a discounter’s turnover’ [Duns Business Month]

‘…he is turning over his CEO title to one of his teammates, but will remain chairman for a year’ [Duns Business Month]

turnover / t% nəυvə/ noun 1. the amount of sales of goods or services by a company The company’s turnover has increased by 235%. We based our calculations on the forecast turnover.

(NOTE: The US term is sales volume.)

2. the number of times something is used or sold in a period, usually one year, expressed as a percentage of a total

turnover of shares / t% nəυvə əvʃeəz/ noun the total value of shares bought and sold on the Stock Exchange during the year

turnover tax / t% nəυvə t ks/ noun same as sales tax

turn round / t% n raυnd/ verb to make a company change from making a loss to become profitable they turned the company round in less than a year they made the company profitable in less than a year

turnround / t% nraυnd/ noun 1. the value of goods sold during a year divided by the average value of goods held in stock 2. the action of emptying a ship, plane, etc., and getting it ready for another commercial journey 3. the act of making a company profitable again

(NOTE: [all senses] The US term is turnaround.)

‘…the US now accounts for more than half our world-wide sales; it has made a huge

contribution to our earnings turnround’ [Duns Business Month]

twenty-four-hour trading / twenti fɔ aυə tre d ŋ/ noun trading in bonds,

currencies or securities that can take place at any time of day or night (NOTE:

Twenty-four-hour trading does not involve one trading floor being open all the time, but instead refers to the possibility of conducting operations at different locations in different time zones.)

24-hour banking / twentifɔ r aυəb ŋkiŋ/ noun a banking service provided during the whole day (e.g. by cash dispensers in the street and online services)

24-hour service / twenti fɔ r aυəs% v s/ noun help which is available for the whole day

24-hour trading / twenti fɔ r aυətre d ŋ/ trading in bonds, securities and currencies during the whole day

COMMENT: 24-hour trading is now possible because of instant communication to Stock Exchanges in different time zones; the Tokyo Stock Exchange closes about two hours before the London Stock Exchange opens; the New York Stock Exchange opens at the same time as the London one closes.

two-tier market / tu t ə mɑ k t/ noun an exchange market where two rates apply (usually one for tourists and a commercial rate for businesses)

two-way market / tu we mɑ k t/ noun a market where there is active buying and selling

tycoon /ta ku n/ noun an important businessman

UBR abbreviation uniform business rate

ultimatum / lt me təm/ noun a statement to someone that unless they do something within a period of time, action will be taken against them The union officials argued

management. The banks issued an ultimatum to their largest borrowers.

(NOTE: The plural is ultimatums or ultimata.)

umbrella organisation / m breləɔ əna ze ʃ(ə)n/ noun a large organi-

sation which includes several smaller ones

unacceptable / nək septəb(ə)l/ adjective which cannot be accepted

The terms of the contract are quite unacceptable.

unaccounted for / nə kaυnt d fɔ / adjective lost without any explanation

Several thousand units are unaccounted for in the stocktaking.

unanimous /ju n n məs/ adjective where everyone agrees or votes in the same way There was a unanimous vote against the proposal.They reached unanimous agreement.

unanimously /ju n m məsli/ adverb with everyone agreeing The proposals were adopted unanimously.

unaudited / n ɔ d t d/ adjective which has not been audited unaudited accounts

unauthorised / n ɔ θəra zd/,

unauthorized adjective not permitted

unauthorised access to the company’s records unauthorised expenditureNo unauthorised persons are allowed into the laboratory. The bank charges 26.8% interest on unauthorised overdrafts.

unauthorised unit trust / n-

ɔ θəra zd ju n t tr st/ noun a private unit trust operated by a stockbroking firm for its clients

unbalanced / n b lənst/ adjective referring to a budget which does not balance or which is in deficit

unbanked / n b ŋkt/ adjective 1. referring to a person who does not have a bank account 2. referring to a cheque which has not been deposited in a bank account

unbundling / n b nd(ə)l ŋ/ noun 1. the process of separating companies from a conglomerate (the companies were independent in the past, and have been acquired by the conglomerate over a period of time) 2. US the practice of charging separately for each different service provided

uncalled / n kɔ ld/ adjective referring to capital which a company is authorised to raise and has been issued but for which payment has not yet been requested

uncashed / n k ʃt/ adjective which has not been cashed uncashed cheques

unchanged / n tʃe nd$d/ adjective which has not changed

‘…the dividend is unchanged at L90 per ordinary share’ [Financial Times]

unchecked / n tʃekt/ adjective which has not been checked unchecked figures

uncollected / nkə lekt d/ adjective which has not been collected uncollected subscriptions uncollected taxes

uncollected funds / nkəlekt df ndz/ plural noun deposits which have not yet cleared through the clearing system and so cannot be drawn on

unconditional / nkən d ʃ(ə)nəl/ adjective with no conditions or provi-

sions attached unconditional acceptance of the offer by the board After the interview he got an unconditional offer of a job. the offer went unconditional last Thursday the takeover bid was accepted by the majority of the shareholders and therefore the conditions attached to it no longer apply

COMMENT: A takeover bid will become unconditional if more than 50% of shareholders accept it.

unconditionally / nkən-

d ʃ(ə)n(ə)li/ adverb without imposing any conditions The offer was accepted unconditionally by the trade union.

uncontrollable / nkən trəυləb(ə)l/ adjective which cannot be controlled uncontrollable inflation

uncovered bear / nk vəd beə/ noun a person who sells stock which he does not hold, hoping to be able to buy stock later at a lower price when he needs to settle

uncrossed cheque / nkrɒsttʃek/ noun a cheque which does not have two lines across it, and can be cashed anywhere (NOTE: They are no

longer used in the UK, but are still found in other countries.)

undated / n de t d/ adjective with no date indicated or written He tried to cash an undated cheque.

COMMENT: The only British government stocks which are undated are the War Loan.

undated bond / n de t d bɒnd/ noun a bond with no maturity date

under / ndə/ preposition 1. lower than or less than The interest rate is under 10%. Under half of the shareholders accepted the offer. 2. controlled by, according to Under the terms of the agreement, the goods should be delivered in October. He is acting under rule 23 of the union constitution.

under- / ndə/ prefix less important than or lower than

underbid / ndə b d/ verb to bid less than someone (NOTE: underbidding –

underbid)

underbidder / ndəb də/ noun a person who bids less than the person who buys at an auction

undercapitalised / ndə-

k p təla zd/, undercapitalized ad-

jective without enough capital The company is severely undercapitalised.

undercharge / ndə tʃɑ d$/ verb to ask someone for too little money She undercharged us by £25.

undercut / ndə k t/ verb to offer something at a lower price than someone else They increased their market share by undercutting their competitors.

(NOTE: undercuttingundercut)

underemployed / ndər m plɔ d/ adjective with not enough work The staff is underemployed because of the cutback in production.

underemployed capital

/ ndər mplɔ d k p t(ə)l/ noun capital which is not producing enough interest

underestimate noun / ndər-

est mət/ an estimate which is less than the actual figure The figure of £50,000

in turnover was a considerable underestimate. verb / ndər est me t/ to

think that something is smaller or not as bad as it really is They underestimated the effects of the strike on their sales. He underestimated the amount of time needed to finish the work.

underlease / ndəli s/ noun a lease from a tenant to another tenant

underlying inflation rate

/ ndəla ŋ n fle ʃ(ə)n re t/ noun the basic inflation rate calculated on a series of prices of consumer items, petrol, gas and electricity and interest rates. Com-

pare headline inflation rate

underlying value / ndəla ŋ

v lju / noun the basic value of a company, including its assets, goodwill, etc.

undermentioned / ndə-

menʃ(ə)nd/ adjective mentioned lower down in a document See the undermentioned list of countries to which these terms apply.

underperform / ndəpə fɔ m/ verb

to underperform the market to perform worse than the rest of the market

The hotel group has underperformed the sector this year.

underperformance / ndəpə-

fɔ məns/ noun the fact of performing worse than others The underperformance of the shares has worried investors.

‘Australia has been declining again. Because it has had such a long period of underperfomance,

it is now not as vulnerable as other markets’ [Money Observer]

underrate / ndə re t/ verb to value someone or something less highly than they should be Do not underrate the strength of the competition in the European market. The power of the yen is underrated.

underreact / ndəri kt/ verb not to react strongly enough to a situation

The markets underreacted to the oil crisis.

undersell / ndə sel/ verb to sell more cheaply than someone to undersell a competitor the company is never undersold no other company sells goods as cheaply as this one

undersigned / ndə sa nd/ noun a person who has signed a letter we, the undersigned we, the people who have signed below

underspend / ndə spend/ verb to spend less than you should have spent or were allowed to spend he has underspent his budget he has spent less than was allowed in the budget

understanding / ndə st nd ŋ/ noun a private agreement to come to an understanding about the divisions of the market

understate / ndə ste t/ verb to make something seem less than it really is The company accounts understate the real profit.

undersubscribed / ndəs b-

skra bd/ adjective referring to a share issue where applications are not made for all the shares on offer, and part of the issue remains with the underwriters

undertake / ndə te k/ verb to agree to do something They are undertaki We asked the research unit to undertake an investigation of the market. They have undertaken not to sell into our territory. The union has undertaken not to call a strike without further negotiation with the management. (NOTE: un-

dertaking – undertook – undertaken)

undertaking / ndə te k ŋ/ noun 1. a business He is the MD of a large commercial undertaking. 2. a promise, especially a legally binding one They have given us a written undertaking not to sell their products in competition with ours.

undervaluation / ndəv ljυ-

e ʃ(ə)n/ noun the state of being valued, or the act of valuing something, at less than the true worth

undervalued / ndə v lju d/ adjective not valued highly enough

The dollar is undervalued on the foreign exchanges. The properties are undervalued on the company’s balance sheet.

‘…in terms of purchasing power, the dollar is considerably undervalued, while the US trade deficit is declining month by month’ [Financial Weekly]

underwater / ndə wɔ tə/ adjective which has lost value

underwater loan / ndə wɔ tə ləυn/ noun a loan which is worth less than its book value, as when an item bought with a loan loses its value on the market

underwater option / ndə wɔ təɒpʃən/ noun an option which has no

value

underweight / ndə we t/ adjective not heavy enough the pack is twenty grams underweight the pack weighs twenty grams less than it should

underwrite / ndə ra t/ verb 1. to accept responsibility for something to underwrite a share issue to guarantee that a share issue will be sold by agreeing to buy all shares which are not subscribed The issue was underwritten by three underwriting companies. 2. to insure, to cover a risk to underwrite an insurance policy 3. to agree to pay for costs The government has underwritten the development costs of the project.

(NOTE: underwriting – underwrote – has underwritten)

‘…under the new program, mortgage brokers are allowed to underwrite mortgages and get a much higher fee’ [Forbes Magazine]

underwriter / ndəra tə/ noun a person or company that underwrites a share issue or an insurance

COMMENT: When a major company flotation or share issue or loan is prepared, a group of companies (such as merchant banks) will form a syndicate to underwrite the flotation: the syndicate will be organized by the ‘lead underwriter’, together with a group of main underwriters; these in turn will ask others (‘sub-underwriters’) to share in the underwriting.