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United States Aircraft Insurance Group (USAIG) United States Aircraft Insurance Group (USAIG) is the nation’s oldest aviation insurer and a specialist provider of aviation insurance and reinsurance capacity for operators, manufacturers, airports and airlines. Origins and notable milestones Founded after World War I by Reed McKinley Chambers and David C. Beebe to address a gap…

United States Agency for International Development (USAID) What USAID is The United States Agency for International Development (USAID) is the U.S. government’s primary civilian foreign-aid agency. Established in 1961, USAID designs and delivers development and humanitarian assistance across the globe to promote economic growth, health, stability, and democratic governance. Mission and focus areas USAID works…

United Nations Global Compact What it is The United Nations Global Compact is a voluntary, UN-led initiative that encourages businesses to adopt responsible practices in human rights, labor, the environment, and anti‑corruption. It asks companies to align their strategies and operations with universal principles and to advance broader sustainable development goals. Origins The Compact’s principles…

United Nations Commission on International Trade Law (UNCITRAL) Key takeaways UNCITRAL is the United Nations’ core legal body for international trade law, created to harmonize and modernize rules governing cross-border commerce. Headquarters are in New York; annual sessions alternate between New York and Vienna. The commission develops conventions, model laws, rules, and guidance on topics…

United Nations (UN): Definition, Purpose, Structure, and Membership What is the United Nations? The United Nations (UN) is an international organization founded to promote peace, security, human rights, and social and economic cooperation among nations. Headquartered in New York and governed by the UN Charter, it brings together almost every sovereign state to address global…

Unitary Thrift: What Thrifts Are and How They Work What is a thrift? A thrift (often called a savings and loan association or savings bank) is a depository institution that specializes in consumer savings and real‑estate lending. The term is sometimes used broadly to include mutual savings banks and institutions with a member‑focused structure. Thrifts…

Unit Trust (UT): What it is and how it works Key takeaways A unit trust is an unincorporated pooled investment established under a trust deed. Investors buy units and are beneficiaries of the trust; a fund manager makes investment decisions. Unit price is based on net asset value (NAV) per unit; profits are passed to…

Unit Sales: Definition, Calculation, and Applications Key takeaways Unit sales are the total number of individual products a company sells in a given period. They help determine pricing, assess margin pressure, and inform production and forecasting decisions. Sales revenue = units sold × average price per unit. Break-even, marginal cost, and economies of scale are…

Unit of Production Method The unit of production method depreciates an asset based on its actual usage or output rather than time. It’s most appropriate for assets whose wear and value loss correlate directly with production (for example, manufacturing equipment, vehicles measured by mileage, or mining equipment measured by tons extracted). This method matches depreciation…

Unit Linked Insurance Plan (ULIP): What it Is and How It Works A Unit Linked Insurance Plan (ULIP) combines life insurance with an investment component. Premiums you pay are split between insurance cover and investment funds (equities, debt, or a mix). ULIPs are designed for long-term goals such as wealth creation, retirement planning, or funding…

Unit Investment Trust (UIT): What It Is and How It Works A unit investment trust (UIT) is an investment company that purchases and holds a fixed portfolio of securities (stocks, bonds, or both) and issues redeemable units to investors for a defined period. UITs are a pooled investment vehicle like mutual funds and closed-end funds,…

Unit Cost A unit cost is the total expense incurred to produce, store, and sell one unit of a product or service. It combines all relevant fixed and variable costs and is a fundamental measure for pricing, profitability analysis, and operational decision-making. Key takeaways Unit cost measures the total expense per unit produced and sold….

Unit Benefit Formula Key takeaways The unit benefit formula calculates pension benefits as a percentage of salary for each year of service. Typical benefit percentages range from about 1.25% to 2.5% per year of service. The formula rewards long service but can be costly for employers because it requires actuarial valuation and the employer bears…

Common-Pool Resources: Definition, Risks, and Examples Key takeaways * A common-pool resource is shared and non-excludable but rivalrous—use by one person reduces availability for others. * These resources are vulnerable to overuse (the “tragedy of the commons”) unless managed. * Common solutions include regulation, defined property rights, quotas, and collective local management. What is a…

Unintentional Tort An unintentional tort is a negligent, non‑deliberate act that causes injury, property damage, or financial loss. It arises when someone fails to exercise the level of care a reasonable person would use in the same circumstances and, as a result, harms another person. Key points Unintentional torts are based on negligence, not intent….

Uninsured Motorist Coverage (UM) Uninsured motorist (UM) coverage is an auto insurance component that pays for your injuries, medical bills, and, in some cases, vehicle damage when an at-fault driver has no insurance or in the event of a hit-and-run. Some states require UM; in others it’s optional. Key takeaways UM covers medical expenses and…

Uninsured Certificate of Deposit An uninsured certificate of deposit (CD) is a CD that is not protected by the Federal Deposit Insurance Corporation (FDIC) or the National Credit Union Administration (NCUA). Because the investor bears all credit and institutional risk, uninsured CDs typically offer higher interest rates than insured CDs. Key takeaways Uninsured CDs are…

Uninsurable Risk Key takeaways Uninsurable risk is a condition an insurer cannot reasonably price, predict, or is legally prohibited from covering. Common reasons a risk is uninsurable: events are too likely, probabilities are unknowable, losses are unquantifiable, or coverage is illegal. Options include government programs, high-risk/limited commercial policies, risk management, or self-insurance. What is uninsurable…

Uninsurable Property Uninsurable property typically refers to a home that an insurer will not cover. In housing, the term most often describes properties the Federal Housing Administration (FHA) refuses to insure because they fail to meet minimum safety, soundness, and habitability standards. More broadly, it can apply to any real estate or personal property that…

Uninsurable Peril What is an uninsurable risk? An uninsurable risk (or peril) is a circumstance or event that an insurance company cannot reasonably underwrite because the probability or cost of loss cannot be calculated, the risk is legally prohibited from being insured, or the exposure is so likely that pooling premiums would not sustain payouts….

ZZZZ Best: The Rise and Fall of Barry Minkow’s Fraud Overview ZZZZ Best started as a carpet-cleaning business but became one of the most notorious corporate frauds of the 1980s. Founded by Barry Minkow, the company went public in December 1986, reached a market valuation of hundreds of millions, and collapsed within months when its…

Zoning Ordinance Summary A zoning ordinance is a local law that dictates how land in specific geographic zones may be used. Common controls include permitted uses (residential, commercial, industrial, agricultural), lot size, building height, density, and architectural standards. Zoning aims to separate conflicting land uses and guide orderly growth, but it can also limit housing…

Zoning: What It Is and How It Works Zoning is the set of local laws and regulations that determine how land and buildings may be used within specific geographic areas. Municipalities use zoning to separate incompatible land uses, control development patterns, manage infrastructure needs, and shape the character of neighborhoods. Common Zoning Classifications Residential (single-family,…

Zone of Support: What It Means and How It Works Key takeaways A zone of support is a price area where a security has historically found buying interest, preventing it from falling easily below that range. Support zones are often drawn as trendlines or bands rather than single price points and can be identified with…

Zone of Resistance: Definition, How It Works, and How Traders Use It Key takeaways * The zone of resistance is an upper price range where selling pressure tends to prevent a security from rising further. * It is the counterpart to the zone of support (the lower price range where buying interest holds prices up)….

Zone of Possible Agreement (ZOPA) Definition A Zone of Possible Agreement (ZOPA) is the range in a negotiation where two or more parties’ acceptable terms overlap. It’s the bargaining range in which a mutually acceptable deal can be struck. How it works Each party has a reservation price (the worst deal they will accept) and…

Zomma What it is Zomma measures how an option’s gamma changes as implied volatility changes. It is a third‑order risk metric—formally d(gamma)/d(vol)—and is one of the “minor Greeks” used to manage higher‑order risks in options trading. The term “zomma” is trader jargon (not a Greek letter). Relationship to other Greeks Delta: first‑order sensitivity of an…

Zombies (Financial Term for Distressed Companies) What is a zombie company? A zombie company is a business that earns just enough to continue operating and service its debt but cannot pay down principal or invest in growth. Such firms typically cover overhead—wages, rent, interest payments—but lack excess capital for expansion or innovation. They are sometimes…

Zombie Foreclosure A zombie foreclosure occurs when homeowners who have received a foreclosure notice vacate their house before the foreclosure is completed. Because the lender never finished taking title, the property remains legally owned by the original homeowner but sits vacant and unattended. This can lead to property deterioration, unpaid taxes and fees, and neighborhood…

Zombie Foreclosure A zombie foreclosure occurs when homeowners default on their mortgage, receive a foreclosure notice, and vacate the property before the lender completes the foreclosure. Because the lender has not taken title, the original owner still legally owns the home and remains responsible for taxes, insurance, utilities, homeowners association (HOA) fees, and maintenance. The…

What Is a Zombie ETF? A zombie ETF is an exchange-traded fund that has stopped attracting new investment and shows little trading activity. It isn’t necessarily losing money; it has simply failed to grow its asset base. Issuers often liquidate these funds, returning investors’ capital (minus any taxes owed on gains). Key takeaways Zombie ETFs…

What is zombie debt? Zombie debt is old consumer debt that is no longer legally enforceable under the statute of limitations but is sold or pursued by debt buyers and collectors. Collectors may attempt to “revive” these accounts through repeated contact, threats, or misleading statements in hopes that a consumer will pay or otherwise restart…

Zombie Bank: Definition, Causes, Consequences, and Examples What is a zombie bank? A zombie bank is an insolvent or near‑insolvent financial institution that continues operating because of explicit or implicit government support. Its balance sheet is burdened by large amounts of nonperforming assets (loans that are not being repaid), and it survives only through bailouts,…

zk-SNARK What is zk-SNARK? zk-SNARK stands for Zero-Knowledge Succinct Non-Interactive Argument of Knowledge. It is a form of zero-knowledge proof that allows one party (the prover) to demonstrate to another party (the verifier) that it knows a particular piece of information or that a statement is true, without revealing the information itself. zk-SNARKs are compact…

Zig Zag Indicator — Definition, Usage, Formula, and Limitations Key takeaways * The Zig Zag indicator filters out minor price noise to reveal significant swings and trend changes. * It plots points when price reverses by at least a user-defined percentage and connects them with straight lines. * Best used in trending markets and as…