U, V, W, Y, Z

Question 1

Unified Household Managed

Account (UHMA)

Answer 1

An account that provides all of the features,
information and controls afforded by a
UMA, but is applied to the client’s entire
household and/or family office situation,
rather than applying it just to the individual
client.

Question 2

Unified Managed Account (UMA)

Answer 2

Software tools and data feeds that eliminate
the shortcoming associated with SMAs. The
advisor is able to monitor the client’s overall
portfolio of managed accounts to the
appropriate level of detail to ensure that all
investment guidelines and restrictions are
adhered to and that tax management can be
controlled

Question 3

Unique circumstances

Answer 3

Any client issues that limit or restrict the
way a portfolio is managed and that do not
fall under any other investment constraint
category

Question 4

Unrealized capital gain

Answer 4

The profit on a security (that hasn’t been
sold) when it is worth more than what was
paid for it. See also Net realized capital
gains and Realized capital gains.

Question 5

Unsystematic risk

Answer 5

The portion of a security or portfolio’s total
risk that is not related to fluctuations in the
overall market. See also Capital Asset
Pricing Model (CAPM) and Systematic
risk.

Question 6

Up trendline

Answer 6

A line drawn on a chart that connects a
series of ascending lows. See also Down
trendline and Trendline.

Question 7

Upward-sloping yield curve

Answer 7

See Normal yield curve

Question 8

Value ratio

Answer 8

A ratio that gauges the market’s perception
of the value of a company’s shares relative to
its dividends, earnings, or other measures
such as the book value of common equity

Question 9

Value stock

Answer 9

A stock with a low price-to-book ratio.

See also Growth stock.

Question 10

Venture Capital

Answer 10

Private equity financing of new, untested

companies.

Question 11

Value-based approach

Answer 11

An approach to tactical asset allocation that
identifies when an asset class is cheap and
when it is expensive by comparing the
relative value of that asset class to all other
asset classes. See also Risk premium.

Question 12

Weighted average cost of capital

Answer 12

A weighed average of the required return on

a company’s debt and equity securities

Question 13

Weighted moving average

Answer 13

A type of moving average that gives more
weight to recent prices than it does to older
prices. See also Exponential moving
average, Moving average, and Simple
moving average.

Question 14

Whipsawed

Answer 14

Taking a certain position in anticipation of
the market moving in a certain direction,
only to have the market reverse and go in
the opposite direction.

Question 15

Whisper estimate

Answer 15

An unofficial estimate of an economic
forecast or a company’s earnings that
deviates from the consensus forecast.
See also Consensus forecast.

Question 16

Working alliance

Answer 16

The term describes the effort required
of both client and advisor and denotes
a practical partnership.

Question 17

Wrap accounts

Answer 17

Accounts for which a qualified portfolio
manager is authorized to select securities
and execute trades on behalf of a client. The
securities can include mutual funds, pooled
funds, or individual securities such as stocks
and bonds

Question 18

Wrap funds

Answer 18

Portfolios of managed products “wrapped”

together and sold as a single product.

Question 19

Yield

Answer 19

A measure of the known or estimated rate
of return on an investment. The term yield
is most frequently associated with debt
securities.

Question 20

Yield curve

Answer 20

A graphical representation of the term
structure of interest rates for a single issuer.
See also Term structure.

Question 21

Yield curve hump

Answer 21

An increase or decrease in the yields at or
near a certain maturity that is greater than
the change in yields at other maturities. See
also Parallels shift of the yield curve,
Yield curve, and Yield curve twist.

Question 22

Yield curve twist

Answer 22

An increase or decrease in yields at one end
of the yield curve that is greater or less than
the increase or decrease in yields at the
other end of the yield curve, or an increase
in yields at one end of the yield curve with
a corresponding decrease in yields at the
other end. A yield curve twist causes the
yield curve to either steepen or flatten. See
also Flattening of the yield curve, Parallel
shift of the yield curve, Steepening of the
yield curve, Yield curve, and Yield curve
hump.

Question 23

Yield spread

Answer 23

The difference between the yields on two
debt securities, normally expressed in
b10a-4321 SQDFGHJKL;’\
sis points. In general, the greater the
difference in the risk of the two securities,
the larger the spread

Question 24

Yield to call

Answer 24

The yield to maturity on a callable debt
security assuming the call date is the
maturity date. See also Yield to maturity.

Question 25

Yield to maturity

Answer 25

A measure of the rate of return on a debt
security assuming the security is held to
maturity and the issuer does not default on
its obligations. If these conditions are true,
and the debt security does not pay periodic
interest, then the yield to maturity is an
exact measure of return. If the conditions
are true and the debt security does pay
periodic interest, then the yield to maturity
is an exact measure of return only if the
interest is reinvested at the original yield to
maturity

Question 26

Yield to put

Answer 26

The yield to maturity on a putable debt
security assuming the put date is the
maturity date. See also Yield to maturity.

Question 27

Yield to worst

Answer 27

The lowest yield on a callable debt security
taken from the set of yields that includes
the yield to all possible call dates and the
yield to the final maturity date. See also
Yield to call and Yield to maturity.

Question 28

Zero-coupon fixed-rate loan

Answer 28

The final component of the equity forward
monetization is the loan contract. The bank
provides a loan to the shareholder against
the equity forward contract. In a
zero-coupon fixed-rate loan, the bank lends
the shareholder an amount equal to the
present value of the forward price times the
number of shares.