Glossary

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Under-Perform

    A security whose expected (average) return is below its required return. Also called over-priced, over-valued, or under-rewarded.
Under-Rewarded
    A security whose expected (average) return is below its required return. Also called overpriced.
Under-Valued
    An asset that is selling at a price below its intrinsic (theoretical or formula) value.
Underpricing
    Issue of securities below their market value.
Underwriter (Investment Banker)
    Firm that buys an issue from a company and resells it to investors; a primary market activity.
Underwriter Discount
    Underwriters buy the to be issued securities at a reduced (discounted) price. This discount is usually measured as a percent of the price of the issue.