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.

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) collateral is

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. Insurance. Evaluation

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

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.

Loss experienced or profit gained from a policy for insurance.

Underwriter’s group existing temporarily and banks formed for marketing new bonds or shares that is too big for one body to handle it. Also known as underwriting group.

Products that can be replaced with identical products but from different suppliers.

Underwriting syndicate where each member has dual liability. See divided account.

Ownership claim of property or assets commonly owned with restricted claims but no one has an exclusive claim.

1. Accounting. Income received before a service is provided or a good is sold.2. Taxation. Income from means not arising from a person’s efforts.

Deducted amount from a sum and classed as interest in advance.

Insurance made in advance that the insurance company has not earned.

Account holding income recognised to pay insurance premiums.

Part of the premium applying to a reinsured part of the policy.

Payment that is received before a service is provided or a good is sold.