underwriter: an investment bank serving as the intermediary between an issuer of a security and the investing public. Generally, a group of investment banks assume the risk of buying a new issue of securities from a corporation or government entity and reselling them to the public. Underwriters make a profit on the difference between the price paid to the issuer of the security and the price offered to the public.
Uniform Gifts to Minors Act (UGMA): legislation that allows the transfer of assets to a minor, defined by most states as an individual under the age of 18. A custodian appointed by the donor manages the assets of an UGMA account until the child reaches majority age.
Uniform Transfers to Minors Act (UTMA): law which extends the Uniform Gift to Minors Act’s definition of a gift to include real estate, fine art, patents and royalties. The law also raises the age for taking control of these assets to 21 in most states.
unit: the standard division of ownership in an annuity.