Financial dictionary
| Term | Definition |
|---|---|
| UCITS | UCITS (Undertakings for Collective Investment in Transferable Securities) is a regulatory framework of the European Union for investment funds, which allows them to be sold across the EU based on a unified set of rules. UCITS funds are designed to provide a high level of investor protection, including requirements for diversification, liquidity, and transparency. Due to this regulation, UCITS funds are popular among investors. They offer relative safety, are strictly regulated, and are easily accessible on international markets. |
| Underwriting | Underwriting is the process in which an investor or investment firm agrees to purchase newly issued securities, such as stocks or bonds, during their initial public offering (IPO) or other forms of issuance. Underwriting involves a commitment to provide capital to the issuer in exchange for securities. In the case of a public securities offering, underwriting is often carried out by investment banks or financial intermediaries, who then offer the securities to the public or institutional investors. The underwriting process allows the issuer to raise the necessary capital for their business or investment plans. |