fair value fair rate return what is
Fair Value, Fair Rate Of Return, Fair Price Provision, Fair Price, Fair Game, Fair-And-Equitable.

Financial definitions for business owners F

  • Definition Fun money Explain Money that can be used to invest in risky investments with high potential return
  • Definition Fundamental analysis Explain misvalued securities through an analysis of the firm's business prospects. Research often focuses on earnings, dividend prospects
  • Definition Fundamental beta Explain predict the fundamental risk of a security using not only price data but also other market-related and financial data
  • Definition Fundamental descriptors Explain fundamental beta, ratios in risk indexes other than market variability, which rely on financial data other than price data
  • Definition Funded debt Explain Debt maturing after more than one year
  • Definition Funded pension plan Explain A pension plan in which all liabilities, including payments to be made to pensioners in the immediate future, are completely funded
  • Definition Funding Explain debt prior to its maturity (the same as refunding). In corporate finance refers to the floating of bonds to raise finance and levels of
  • Definition Funding ratio Explain The ratio of a pension plan's assets to its liabilities
  • Definition Funding risk Explain Related: Interest rate risk
  • Definition Fungibility Explain which is dependent upon their common expiration dates and strike prices. The congruence of expiration dates and strike prices lets
  • Definition Furthest month Explain Used in the context of commodities or options trading to refer to the month that is away from the contract's date of settlement
  • Definition FUTOP Explain The Danish derivatives market, merged with the Copenhagen Stock Exchange in 1997
  • Definition Future Explain covering the sale of financial instruments or physical commodities for future delivery on a commodity exchange
  • Definition Future investment opportunities Explain The identification of additional, more valuable, investment opportunities in the future that result from a current opportunity or operation
  • Definition Futures Explain covering the sale of financial instruments or physical commodities for future delivery on a commodity exchange
  • Definition Futures contract Explain of shares of a specific stock in a designated future month at a price agreed upon today by the buyer and seller. The contracts themselves
  • Definition Futures contract multiple Explain A constant set by an exchange, which when multiplied by the futures price gives the dollar value of a stock index futures contract
  • Definition Futures market Explain A market where contracts for future delivery of a commodity or a security are bought or sold
  • Definition Futures option Explain An option on a futures contract. Related: Options on physicals
  • Definition Futures price Explain The price at which parties to a futures contract agree to transact upon the settlement date
  • Definition Future value Explain The amount of cash at a specified date in the future that is equivalent in value to a specified sum today
  • Definition Free right of exchange Explain An investor's right to transfer securities from one name to another name without paying charges that accompany a sales transaction
  • Definition Free stock Explain A stock that is paid for in full and is not pledged in any way as collateral
  • Definition Free to trade Explain Not subject to any internal (restricted list) or external restrictions on trading; hence, the trader is free to solicit interest
  • Definition Freed up Explain underwriting syndicate's members are no longer restricted to the fixed price agreed upon in the agreement among underwriters and are
  • Definition Freeze out Explain The action of pressurizing shareholders with relatively minor amounts of stock to sell their shares after a takeover
  • Definition Frequency distribution Explain The organization of data to show how often certain values or ranges of values occur
  • Definition Fresh picture Explain Updated estimation of a stock or market, usually following recent trading activity or news that has changed the previous look
  • Definition Fresh signal Explain Piece of information (fundamental or technical) leading one to believe a stock will move in a certain manner
  • Definition Friction costs Explain associated with a transaction. Such costs include time, effort, money, and associated tax effects of gathering information and making a
  • Definition Frictional cost Explain return and the index it represents. The typically lower rate of return from the fund results from transactions costs
  • Definition Frictions Explain transactions; the total process including time, effort, money, and tax effects of gathering information and making a transaction such as
  • Definition Friendly takeover Explain Merger when the target firm's management and board of directors is in favor of the takeover. Antithesis of hostile takeover
  • Definition Front-end load Explain The fee applied to an investment at the time of initial purchase, e.g., on a mutual fund purchased from a broker or mutual fund company
  • Definition Front fee Explain The fee initially paid by the buyer upon entering a split-fee option contract
  • Definition Front office Explain Refers to revenue generating sales personnel in a brokerage, insurance, or other financial services operation
  • Definition Front running Explain contracts with advance knowledge of a block transaction that will influence the price of the underlying security to capitalize on the trade
  • Definition Frozen account Explain Federal Reserve Board for some violation of Regulation T, an individual investor cannot sell securities until they are paid for in full and
  • Definition Fry a bigger fish Explain Used in the context of general equities. Work on a trade of larger size than a trade just disclosed
  • Definition Full Explain Handle
  • Definition Full coupon bond Explain A bond with a coupon equal to the going market rate; the bond is therefore selling at par
  • Definition Full disclosure Explain Describes exchange and government regulations providing for the release and free exchange of all information pertinent to a given security
  • Definition Full faith-and-credit obligations Explain The security pledges for larger municipal bond issuers, such as states and large cities that have diverse funding sources
  • Definition Full price Explain Also called dirty price; the price of a bond including accrued interest. Related: Flat price
  • Definition Full-service broker Explain A broker who provides clients an all-inclusive selection of services such as advice on security selection and financial planning
  • Definition Full-service lease Explain Also called rental lease. Arrangement in which lessor promises to maintain and insure the equipment leased
  • Definition Full trading authorization Explain Indication that a broker with a discretionary account can operate free of all trading guidelines from the client
  • Definition Fully depreciated Explain An asset that has already been charged with the maximum amount of depreciation allowed by the IRS for accounting purposes
  • Definition Fully diluted earnings per shares Explain Earnings per share expressed as if all outstanding convertible securities and warrants have been exercised
  • Definition Fully distributed Explain A new stock issue that has been completely resold to the investing public and is no longer held by dealers
  • Definition Fully invested Explain Used to describe an investor whose assets are totally committed to investments, typically stock
  • Definition Fully modified pass-throughs Explain Agency pass-throughs that guarantee the timely payment of both interest and principal. Related: Modified pass-throughs
  • Definition Fully valued Explain Said of a stock that has reached a price at which analysts think the underlying company's fundamental earnings power has been fully
  • Definition Functional currency Explain #039;s functional currency is the currency of the primary economic environment in which the affiliate generates and expends cash
  • Definition Fund family Explain objectives offered by one management company. In many cases, investors may move their assets from one fund to another within the family at
  • Definition Fund of funds Explain A mutual fund or hedge fund that invests in other funds
  • Definition Fund manager Explain to oversee the allocation of the pool of money invested in a particular mutual fund. The fund manager is charged with investing the money
  • Definition Fund switching Explain Moving money within a mutual fund family from one mutual fund to another
  • Definition Form 3 Explain stock exchange from all holders of 10% or more of a company's stock and all directors and officers, which details securities owned
  • Definition Formula basis Explain common stock in which the S.E.C. declares the registration statement effective on the basis of a price formula rather than on a specific
  • Definition Formula investing Explain which investment decisions are made using predetermined timing or asset allocation models, e.g., dollar cost averaging
  • Definition Fortune 500 Explain Fortune magazine's listing of the top 500 U.S. corporations determined by an index of 12 variables
  • Definition Forward contract Explain quantity of an asset to be delivered on in the future. Forward contracts are not standardized and are not traded on organized exchanges
  • Definition Forward cover Explain difference between what you are obligated to deliver in a forward contract and the amount of the asset you own. For example, if you agreed
  • Definition Forward delivery Explain A transaction in which the settlement will occur on a specified date in the future at a price agreed upon on the trade date
  • Definition Forward differential Explain Annualized percentage difference between spot and forward rates
  • Definition Forward discount Explain A currency trades at a forward discount when its forward price is lower than its spot price
  • Definition Forward exchange rate Explain Exchange rate fixed today for exchanging currency at some future date
  • Definition Forward exchange transaction Explain Foreign currency purchase or sale at the current exchange rate but with payment or delivery of the foreign currency at a future date
  • Definition Forward Fed funds Explain Fed funds traded for future delivery
  • Definition Forward forward contract Explain In Eurocurrencies, a contract under which a deposit of fixed maturity is agreed to at a fixed price for future delivery
  • Definition Forward interest rate Explain Interest rate fixed today on a loan to be made at some future date
  • Definition Forward-looking multiple Explain A truncated expression for a P/E ratio that is based on forward (expected) earnings rather than on trailing earnings
  • Definition Forward market Explain A market in which participants agree to trade some commodity, security, or foreign exchange at a fixed price for future delivery
  • Definition Forward premium Explain A currency trades at a forward premium when its forward price is higher than its spot price
  • Definition Forward pricing Explain end investment companies establish all incoming buy and sell orders on the next net asset valuation of fund shares
  • Definition Forward rate Explain A projection of future interest rates calculated from either spot rates or the yield curve
  • Definition Forward sale Explain involves an agreement between a lender and an investor to sell particular kinds of loans at a specified price and future time
  • Definition Forward trade Explain A transaction for which settlement will occur on a specified date in the future at a price agreed upon on the trade date
  • Definition Fractional discretion order Explain discretion to alter the price, up or down, within a specific fractional range in order to guarantee an execution
  • Definition Fractional share Explain Stocks ammounting to less than one full share, usually resulting from splits, acquisitions, exchanges, or dividend reinvestment programs
  • Definition Frankfurt Stock Exchange Explain The largest of Germany's eight securities exchanges, operated by Deutsche Borse AS
  • Definition Free on board (FOB) Explain transport and handling performed on goods up to the customs frontier (of the economy from which the goods are classed as merchandise.) are
  • Definition Free box Explain A bank vault or other suitable storage place for the securities of a firm's customer
  • Definition Free cash flows Explain reinvestment. Often defined as earnings before interest (often obtained from the operating income line on the income statement) less
  • Definition Free delivery Explain delivery of securities sold is made to the buying customer's bank without requiring immediate payment; thus a credit agreement of
  • Definition Free float Explain An exchange rate system characterized by the absence of government intervention. Also known as clean float
  • Definition Free reserves Explain Excess reserves minus member bank borrowings at the Fed
  • Definition Free rider Explain expense of finding the best course of action simply by mimicking the behavior of a leader who made these investments
  • Definition Free-riding Explain member of an underwriting syndicate retains a portion of an initial public offering (IPO) and resells the securities at a higher price
  • Definition Fluctuation Explain A price or interest rate change
  • Definition Fluctuation limit Explain exchange that halts trading on a future if the price of the future changes, in either direction, more than a previously set amount
  • Definition Flurry Explain A drastic volume increase in a specific security
  • Definition Focus list Explain Investment banks published list of buy and sell recommendations from its research department; signified by a flashing F on Quotron
  • Definition For a number Explain Implies that the quantity mentioned is not his total but instead is only approximate, and to open him up more will obligate one to
  • Definition For your information (FYI) Explain A prefix to a security price indicating that the quote is for information purposes only, and not an offer to trade
  • Definition Forbes 500 Explain largest publicly owned corporations in the United States according to sales, assets, profits, and market value
  • Definition Force majeure risk Explain interruption of operations for a project finance enterprise due to fire, flood, storm, or some other factor beyond the control of the
  • Definition Forced conversion Explain called in by the issuer, usually when the underlying stock is selling well above the conversion price. The issuer thus assures the bonds
  • Definition Forecasting Explain Making projections about future performance on the basis of historical and current conditions data
  • Definition Foreclosure Explain mortgage seizes the property of a homeowner who has not made interest and/or principal payments on time as stipulated in the mortgage
  • Definition Foreign banking market Explain That portion of domestic bank loans supplied to foreigners for use abroad
  • Definition Foreign bond Explain A bond issued on the domestic capital market of another company
  • Definition Foreign bond market Explain In the domestic bond market Issues floated by foreign companies or government
  • Definition Finish Explain Used in the context of general equities. See: Fill
  • Definition Foreign Corrupt Practices Act Explain An amendment to the Securities Exchange Act created to sanction bribery of foreign officials by publicly held U.S. companies
  • Definition Foreign crowd Explain NYSE members who trade in foreign bonds on the floor
  • Definition Foreign currency Explain Money of another country from one's own
  • Definition Foreign currency forward contract Explain Agreement that obligates its parties to exchange given quantities of currencies at a prespecified exchange rate on a certain future date
  • Definition Foreign currency futures contract Explain obligation between two parties to exchange currencies at a specified rate during a specified delivery month; standardized contract on
  • Definition Foreign currency option Explain not the obligation) to buy or sell a specified amount of foreign currency at a specified price within a specified time period
  • Definition Foreign currency translation Explain currency accounts of subsidiaries into the reporting currency of the parent company in order to prepare consolidated financial statements
  • Definition Foreign equity market Explain Issues floated by foreign companies in the domestic equity market
  • Definition Foreign exchange Explain Currency of another country. Abbreviated Forex
  • Definition Foreign exchange controls Explain government on the purchase/sale of foreign currencies by residents or on the purchase/sale of local currency by nonresidents
  • Definition Foreign exchange dealer Explain exchange from one party and then sells it to another party. The dealer makes the difference between the buying and selling prices, or the
  • Definition Foreign exchange risk Explain in a foreign currency might have to be closed out at a loss due to an adverse movement in exchange rates
  • Definition Foreign exchange swap Explain An agreement to exchange stipulated amounts of one currency for another currency at one or more future dates
  • Definition Foreign market Explain representing the mechanisms for issuing and trading securities of entities domiciled outside that nation. Compare external market and
  • Definition Foreign market beta Explain A measure of foreign market risk that is derived from the capital asset pricing model
  • Definition Foreign tax credit Explain Home country credit against domestic income tax. Received in return for foreign taxes paid on foreign derived earnings
  • Definition Forfaiter Explain Purchaser of promises to pay issued by importers
  • Definition Forfeiture Explain The loss of rights to an asset outlined in a legal contract if a party fails to fulfill obligations of the contract
  • Definition Form 8-K Explain publicly held company incurs any event that might affect its financial situation or the share value of its stock
  • Definition Form 4 Explain change in the holdings of an individual owning 10% or more of the outstanding stock or in the holdings of a company officer
  • Definition Form T Explain The form required by the NASD to report equity transactions after the market's regular hours
  • Definition Form 10-K Explain A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information
  • Definition Flat price (also clean price) Explain The quoted newspaper price of a bond that does not include accrued interest. The price paid by the purchaser is the full price
  • Definition Flat price risk Explain Taking a position either long or short that does not involve spreading
  • Definition Flat scale Explain The pattern for new issues where shorter- and longer-term yields display very little difference over the bond's maturity range
  • Definition Flat tax Explain A tax which is levied at the same rate on all levels of income. Antithesis of progressive tax
  • Definition Flat trades Explain the price quoted covers both principal and unpaid accrued interest. Any security that trades without accrued interest or at a price that
  • Definition Flattening of the yield curve Explain spread between the yield on long-term and short-term Treasuries has decreased. Compare steepening of the yield curve and butterfly shift
  • Definition Flexible budget Explain different rates of output or at different levels of sales volume and projects revenue based on these different output levels
  • Definition Flexible expenses Explain Expenses for an individual or corporation that can be adjusted or completely dispessed with, e.g., luxury goods
  • Definition Flexible mutual fund Explain securities in varying proportions in order to maximize shareholder returns while maintaining a low level of risk
  • Definition Flight to quality Explain The tendency of investors to move toward safer investments (often government bonds) during periods of high economic uncertainty
  • Definition Flip-flop note Explain Note that allows investors to switch between two different types of debt
  • Definition Flip side Explain In the context of general equities, opposite side to a proposition or position (buy, if sell is the proposition and vice versa
  • Definition Flipping Explain offering (IPO), and then selling the shares immediately after the start of public trading to turn an immediate profit
  • Definition Float Explain does not limit the range of the market rate.Equities: Number of shares of a corporation that are outstanding and available for trading by
  • Definition Floater Explain the interest rate of another debt instrument, e.g., a bond that has the interest rate of the Treasury bill +.25
  • Definition Floating debt Explain Short-term debt that is renewed and refinanced contantly to fund capital needs of a firm or institution
  • Definition Fixed benefits Explain Payments to a beneficiary that are paid in fixed preset amounts and are not variable
  • Definition Floating exchange rate Explain currency value to change freely. The currency is not constrained by central bank intervention and does not have to maintain its
  • Definition Floating lien Explain General attachment against a company's assets or against a particular class of assets
  • Definition Floating-rate contract Explain whose interest payment is tied to some variable (floating) interest rate benchmark, such as a specific-maturity Treasury yield
  • Definition Floating-rate payer Explain In an interest rate swap, the counterparty who pays a rate based on a reference rate, usually in exchange for a fixed-rate payment
  • Definition Floating-rate preferred Explain Preferred stock paying dividends that vary with short-term interest rates
  • Definition Floating securities Explain Securities bought in a broker's name and resold quickly to attain a profit in a short amount of time
  • Definition Floating supply Explain The aggregate of securities believed to be available for immediate purchase, that is, in the hands of dealers and investors wanting to sell
  • Definition Floor Explain active trading occurs. Also the price at which a stop order is activated (when the price drops low enough to activate such an order
  • Definition Floor official Explain An employee of a stock exchange who settles disputes related to the auction process on the floor of the stock exchange
  • Definition Floor picture Explain Details of the trading crowd for a stock, such as the major players, their sizes, and the outside market +/- an eighth
  • Definition Floor planning Explain Arrangement used to finance inventory. A finance company buys the inventory, which is then held in trust for the user
  • Definition Floor ticket Explain exchange order ticket by the registered representative on receipt of a buy or sell order from a client; gives the floor broker the
  • Definition Floor trader Explain trades only for his own account or for an account controlled by him, or who has such a trade made for him. Also referred to as a local
  • Definition Flotation (roatation) cost Explain capital through the issue of new stocks or bonds, including the compensation earned by the investment banker plus legal, accounting and
  • Definition Flow of funds Explain refers to the statement displaying the priorities by which municipal revenue will be applied to the debt.In the context of mutual funds
  • Definition Flow-through basis Explain show all income statement benefits of the credit in the year of acquisition, rather than spreading them over the life of the asset
  • Definition Flow-through method Explain shareholders using straight-line depreciation but using accelerated depreciation for tax purposes and flowing through the lower income
  • Definition Flower bond Explain Government bonds that when owned at the time of death are acceptable at par in payment of federal estate taxes
  • Definition First-pass regression Explain A time series regression to estimate the betas of securities portfolios
  • Definition First preferred stock Explain A type of preferred stock that has priority over other preferred issues and common stock when claiming dividends and assets
  • Definition Fiscal agency agreement Explain An alternative to a bond trust deed. Unlike the trustee, the fiscal agent acts as a representative of the borrower
  • Definition Fiscal policy Explain Government spending and taxing for the specific purpose of stabilizing the economy
  • Definition Fiscal year (FY) Explain consecutive months over which a company determines earnings and profits. The fiscal year serves as a period of reference for the company
  • Definition Fisher effect Explain two or more countries should be equal to the required real rate of return to investors plus compensation for the expected amount of
  • Definition Fisher's separation theorem Explain of investments is separate from its owner's attitudes toward investments. Also referred to as portfolio separation theorem
  • Definition Fit Explain The matching of the investor's requirements and needs such as risk tolerance and growth potential preference with a specific investment
  • Definition Fitch sheet Explain Chronological listing of trades in a security showing the price, size, exchange, and time (to the second) of the trades; obtained by
  • Definition Five Cs of credit Explain form a judgment about a customer's creditworthiness: character, capacity, capital, collateral, and conditions
  • Definition Five hundred dollar rule Explain excludes deficiencies of $500 or less in margin requirements as a necessary reason for the firm to liquidate the client's account to
  • Definition Five percent rule Explain Securities Dealers providing ethical guidelines for spreads created by market makers and commissions charged by brokers
  • Definition Fixed asset Explain that is used by a firm in the production of its income. Tangible fixed assets include real estate, plant, and equipment. Intangible fixed
  • Definition Fixed asset turnover ratio Explain The ratio of sales to fixed assets
  • Definition Fixed annuities Explain Contracts in which an insurance company or issuing financial institution pays a fixed dollar amount of money per period
  • Definition Fixed-charge coverage ratio Explain meet its fixed-charge obligations: the ratio of (net earnings before taxes plus interest charges paid plus long-term lease payments) to
  • Definition Fixed cost Explain A cost that is fixed in total for a given period of time and for given production levels
  • Definition Fixed dates Explain In the Euromarket, the standard periods for which Euros are traded (one month out to a year out) are referred to as the fixed dates
  • Definition Fixed-dollar obligations Explain Conventional bonds for which the coupon rate is set at a fixed percentage of the par value
  • Definition Fixed-dollar security Explain be redeemed at some fixed price or according to some schedule of fixed values, e.g., bank deposits and government savings bonds
  • Definition Fixed exchange rate Explain value of its currency to another country's currency, gold (or another commodity), or a basket of currencies
  • Definition Fixed income equivalent Explain Convertible security that is trading like a straight security because the optioned common stock is trading well below the conversion price
  • Definition Fixed income instruments Explain Assets that pay a fixed dollar amount, such as bonds and preferred stock
  • Definition Fixed income market Explain The market for trading bonds and preferred stock
  • Definition Fixed premium Explain Payments of a fixed, equal amounts paid to an insurance company for insurance or an annuity
  • Definition Fixed price basis Explain An offering of securities at a fixed price
  • Definition Fixed-price tender offer Explain A one-time offer to purchase a stated number of shares at a stated fixed price, usually at a premium over the current market price
  • Definition Fixed-rate loan Explain A loan whose rate is fixed for the life of the loan
  • Definition Fixed-rate payer Explain In an interest rate swap, the counterparty who pays a fixed rate, usually in exchange for a floating-rate payment
  • Definition Fixed-term reverse mortgage Explain A mortgage in which the lending institution provides payments to a homeowner for a fixed number of years
  • Definition Fixed trust Explain A unit investment trust consisting of securities that were agreed upon at the time of investment and do not change
  • Definition Flag Explain within a narrow range, generating a rectangular area on a graph both prior to and after sharp rises or declines
  • Definition Flash Explain flashed across the tape, when the tape display cannot keep up with volume on an exchange and lags the current price is lagged more than
  • Definition Flat Explain date of payment only.General: Having neither a short nor a long position in a stock. Clean.Market: Characterized by horizontal price
  • Definition Flat benefit formula Explain Method used to determine a participant's benefits in a defined benefit plan by multiplying months of service by a flat monthly benefit
  • Definition Financial institution Explain primary business and function is to collect money from the public and invest it in financial assets such as stocks and bonds
  • Definition Financial intermediaries Explain Institutions that provide the market function of matching borrowers and lenders or traders
  • Definition Financial lease Explain Long-term, noncancellable rental agreement
  • Definition Financial leverage Explain Use of debt to increase the expected return on equity. Financial leverage is measured by the ratio of debt to debt plus equity
  • Definition Financial leverage clientele Explain A group of investors who have a preference for investing in firms that adhere to a particular financial leverage policy
  • Definition Financial leverage ratios Explain Common ratios are debt divided by equity a debt divided by the sum of debt plus equity. Related: capitalization ratios
  • Definition Financial market Explain An organized institutional structure or mechanism for creating and exchanging financial assets
  • Definition Financial needs approach Explain life insurance required by an individual by estimating the financial needs of dependents in the event of the individual's death
  • Definition Financial objectives Explain Goals related to returns that a firm will strive to accomplish during the period covered by its financial plan
  • Definition Financial plan Explain A blueprint relating to the financial future of a firm
  • Definition Financial planning Explain options available to a firm. Planning includes attempting to make optimal decisions, projecting the consequences of these decisions for the
  • Definition Financial position Explain The account status of a firm's or individual's assets, liabilities, and equity positions as reflected on its financial statement
  • Definition Financial press Explain Media devoted to reporting financial news
  • Definition Financial public relations Explain Public relations division of a company charged with cultivating positive investor relations and proper disclosure information
  • Definition Financial pyramid Explain #039;s risks across low-, medium-, and high-risk vehicles. The bulk of the assets are in safe, low-risk investments that provide a
  • Definition Financial ratio Explain statement item by another. Ratios help analysts interpret financial statements by focusing on specific relationships
  • Definition Financial risk Explain issuer will not be adequate to meet its financial obligations. Also referred to as the additional risk that a firm's stockholder bears
  • Definition Financial structure Explain assets are financed, such as short-term borrowings, long-term debt, and ownership equity. Financial structure differs from capital
  • Definition Financial supermarket Explain A company offering a wide variety of financial services such as a combination of banking services, stock, and insurance brokerage
  • Definition Financial tables Explain prices, dividends, yields, price-earnings ratios, trading volume, and other important data on stocks, bonds, mutual funds, and futures
  • Definition Footsie (FTSE) Explain Financial Times (F-T)-Actuaries 100 index: Dow average of London
  • Definition Financing decisions Explain Decisions concerning the liabilities and stockholders' equity side of the firm's balance sheet, such as a decision to issue bonds
  • Definition Finder's fee Explain A fee a person or company charges for service as an intermediary in a transaction
  • Definition FINEX Explain division of the New York Cotton Exchange (NYCE), with a trading floor in Dublin, FINEX Europe, creating a 24-hour market in most FINEX
  • Definition Firewall Explain broker/dealer operations within a financial institution created to prevent the exchange of inside information
  • Definition Firm Explain Refers to an order to buy or sell that can be executed without confirmation for some fixed period. Also, a synonym for company
  • Definition Firm commitment underwriting Explain banking firm commits to buy and sell an entire issue of stock and assumes all financial responsibility for any unsold shares
  • Definition Firm order Explain order to buy or sell for the proprietary account of the broker-dealer firm; (2) buy or sell order not conditional upon the customer's
  • Definition Firm quote Explain offer declared by a market maker on a given security and not identified as a nominal quotation (therefore is not negotiable
  • Definition Floor broker Explain Member of an exchange who is an employee of a member firm and executes orders, as agent, on the floor of the exchange for clients
  • Definition Firm's net value of debt Explain Total firm value minus total firm debt
  • Definition First board Explain The Chicago Board of Trade's established dates for delivery on futures contracts
  • Definition First call Explain With collateralized mortgage obligation (C.M.O.s), the start of the cash flow cycle for the cash flow window
  • Definition First call date Explain A date stated in an indenture, that is the first date on which the issuer may redeem a bond either partially or completely
  • Definition First mortgage Explain A type of mortgage that through a lien gives precedence to the lender of the first mortgage over all other lenders in case of default
  • Definition First notice day Explain exchanges, on which notices of intent to deliver actual financial instruments or physical commodities against futures are authorized
  • Definition Federal Intermediate Credit Bank Explain A bank sponsored by the federal government to provide funds to institutions making loans to farmers
  • Definition Federal Land Bank Explain Credit Administration that provides long-term mortgage credit to farmers for agriculture-related expenditures
  • Definition Federal National Mortgage Association (Fannie Mae) Explain corporation chartered in 1938 to purchase mortgages from lenders and resell them to investors. Known by the nickname Fannie Mae, it
  • Definition Farther out; farther in Explain Used in the context of options to refer to the relative length of option contract maturities
  • Definition Federal Open Market Committee (FOMC) Explain The body that is responsible for setting the interest rates and credit policies of the Federal Reserve System
  • Definition Federal Reserve Bank Explain the Federal Reserve System that is responsible for overseeing the commercial and savings banks of its region to ensure their compliance
  • Definition Federal Reserve Board (FRB) Explain Federal Reserve System, which is responsible for setting reserve requirements, and the discount rate, and making other key economic
  • Definition Federal Reserve System Explain established in 1913, and governed by the Federal Reserve Board located in Washington, D.C. The system includes 12 Federal Reserve Banks and
  • Definition Federal Savings and Loan Association Explain An institution chartered by the federal government whose primary function is to collect savings deposits and to provide mortgage loans
  • Definition Federally related institutions Explain from SEC registration whose securities are backed by the full faith and credit of the U.S. government (with the exception of the Tennessee
  • Definition Fedwire Explain A wire transfer system for high-value payments operated by the Federal Reserve System
  • Definition FHA prepayment experience Explain mortgages outstanding at the origination anniversary, based on annual statistical historic survival rates for FHA-insured mortgages
  • Definition Fiat money Explain Nonconvertible paper money
  • Definition Financing Corporation (FICO) Explain A government agency chartered in 1987 to bail out the Federal Savings and Loan Insurance Corporation (FSLIC) by issuing bonds
  • Definition Fictitious credit Explain Fictitious credit exists after the proceeds from a short sale are accounted for with respect to the margin requirement. The proceeds from
  • Definition Finite-Life Real Estate Investment Trust (FREIT) Explain A Real Estate Investment Trust whose priority is to sell its holdings within a specified period to realize capital gains
  • Definition Field warehouse Explain Warehouse rented by a company on another firm's premises
  • Definition First In, First Out (FIFO) Explain An accounting method for valuing the cost of goods sold that uses the cost of the oldest item in inventory first
  • Definition FDIC Explain See: Federal Deposit Insurance Corporation
  • Definition Figuring the tail Explain money market (one available some period hence) is purchased when that future security is created by buying an existing instrument and
  • Definition Fill Explain The price at which an order is executed
  • Definition Filter Explain A rule that stipulates when a security should be bought or sold according to its price action
  • Definition Finance Explain value and making decisions. The finance function allocates resources, including the acquiring, investing, and managing of resources
  • Definition Finance charge Explain The total cost of credit a customer must pay on a consumer loan, including interest
  • Definition Finance company Explain A company whose business and primary function is to make loans to individuals, while not receiving deposits like a bank
  • Definition Financial adviser Explain A professional offering financial advice to clients for a fee and/or commission
  • Definition Financial analysis Explain Analysis of a company's financial statement, often by financial analysts
  • Definition Financial analysts Explain investment analysts,. Pofessionals who analyze financial statements, interview corporate executives, and attend trade shows, in order to
  • Definition Financial assets Explain Claims on real assets
  • Definition Financial control Explain The management of a firm's costs and expenses in relation to budgeted amounts
  • Definition Financial distress Explain Events preceding and including bankruptcy, such as violation of loan contracts
  • Definition Financial distress costs Explain liquidation or reorganization. Also includes implied costs associated with impaired ability to do business (indirect costs
  • Definition Financial engineering Explain Combining or carving up existing instruments to create new financial products
  • Definition Financial future Explain provides for the delivery of a specified asset in exchange for the selling price at some specified future date
  • Definition Financial guarantee insurance Explain Insurance created to cover losses from specified financial transactions
  • Definition Fairness opinion Explain An investment banker's professional opinion as to the price an acquiring firm is offering in a takeover or merger
  • Definition Fall Down Explain not be able to produce as indicated in one's advertised market, due to less help (than anticipated) from other parties or due to
  • Definition Fall out of bed Explain A sudden drop in a stock's price resulting from failed or poor business deals gone bad or falling through
  • Definition Fallen angels Explain Bonds that at the time of issue were considered investment grade but that have dropped below that rating over time
  • Definition Fallout risk Explain is generally created when the terms of the loan to be originated are set at the same time the sale terms are established. The risk is that
  • Definition Fama, Eugene F Explain Finance professor at the University of Chicago. Developer of the Efficient Markets Hypothesis
  • Definition Far month Explain Used in the context of option or futures to refer to the trading month of the contract that is farthest away. Antithesis of nearest month
  • Definition 8\. FASB No Explain U.S. firms to translate their foreign affiliates' accounts by the temporal method; that is reporting gains and losses from currency
  • Definition 52\. FASB No Explain replaced FASB No. 8. U.S. companies are required to translate foreign accounts in terms of the current rate and report the changes from
  • Definition Fast market Explain security that causes a delay in the electronic updating of its last sale and market conditions, particularly in options
  • Definition Favorable trade balance Explain Condition that total exports of a nation exceed total imports, creating a net export
  • Definition Feasible portfolio Explain A portfolio that an investor can construct, given the assets available
  • Definition Feasible set of portfolios Explain The collection of all feasible portfolios
  • Definition Feasible target payout ratios Explain Payout ratios that are consistent with the level of excess funds available to make cash dividend payments
  • Definition FED Pass Explain reserves to the banking system, increasing the money available for lending, and making credit easier to attain
  • Definition Federal agency securities Explain Securities issued by corporations and agencies created by the U.S. government, such as the Federal Home Loan Bank Board and Ginnie Mae
  • Definition Federal Agricultural Mortgage Corporation (Farmer Mac) Explain A federal agency chartered in 1988 to provide a secondary market for farm mortgage loans
  • Definition Federal credit agencies Explain up to supply credit to various classes of institutions and individuals, e.g., S;Ls, small business firms, students, farmers, and exporters
  • Definition Federal deficit (surplus) Explain When federal government expenditures are exceeded by federal government revenue
  • Definition Federal Farm Credit System Explain farm credit act providing farmers with credit services through a federal land bank, a federal intermediate credit bank, and a bank for
  • Definition Federal Farm Credit Bank Explain government with the purpose of uniting the financing activities of the federal land banks, the federal intermediate credit banks, and the
  • Definition Federal Financing Bank Explain A federal institution that lends to a wide array of federal credit agencies funds it obtains by borrowing from the U.S. Treasury
  • Definition Federal funds Explain reserve for depository institutions at their district Federal Reserve Bank. Also, excess reserves lent by banks to each other
  • Definition Federal funds market Explain lend reserves, allowing banks temporarily short of their required reserves to borrow reserves from banks that have excess reserves
  • Definition Federal funds rate Explain excess reserves at a Federal Reserve district bank charge other banks that need overnight loans. The Fed funds rate, as it is called, often
  • Definition Federal gift tax Explain A federal tax imposed on assets conveyed as gifts to individuals
  • Definition Federal Home Loan Banks Explain to savings and loan associations. The Federal Home Loan Banks play a role analogous to that played by the Federal Reserve Banks vis-à-vis
  • Definition Freddie Mac (Federal Home Loan Mortgage Corporation) Explain that purchases residential mortgages in the secondary market from S;Ls, banks, and mortgage bankers and securitizes these mortgages for
  • Definition Federal Housing Administration (FHA) Explain 1934 whose stock is currently owned by savings institutions across the United States. The agency buys residential mortgages that meet
  • Definition Federal Housing Finance Board (FHFB) Explain U.S. government agency chartered in 1989 to assume the responsibilities formerly held by the Federal Home Loan Bank system
  • Definition F Explain Fifth letter of a Nasdaq stock symbol specifying that the issue is a foreign company
  • Definition Financial Accounting Standards Board (FASB) Explain Board composed of independent members who create and interpret Generally Accepted Accounting Principles (GAAP
  • Definition Foreign Credit Insurance Association (FCIA) Explain companies that offers trade credit insurance to U.S. exporters in conjunction with the U.S. Export-Import Bank
  • Definition Futures commission merchant (FCM) Explain or accepting and handling orders for the purchase or sale of futures contracts, subject to the rules of a futures exchange and, who, in
  • Definition Foreign direct investment (FDI) Explain The acquisition abroad of physical assets such as plant and equipment, with operating control residing in the parent corporation
  • Definition Federal Deposit Insurance Corporation (FDIC) Explain A federal institution that insures bank deposits
  • Definition Funds From Operations (FFO) Explain investment trusts to define the cash flow from trust operations; earnings with depreciation and amortization added back. A similar term
  • Definition Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA) Explain of Thrift Supervision, which was created in the wake of the savings and loan crisis of the late 1980s
  • Definition Fill or kill order (FOK) Explain unless executed within a designated time period. A market or limited price order that is to be executed in its entirety as soon as it is
  • Definition Forward rate agreement (FRA) Explain Agreement to borrow or lend at a specified future date at an interest rate that is fixed today
  • Definition Floating-rate note (FRN) Explain Note whose interest payment varies with short-term interest rates
  • Definition Foreign Sales Corporation (FSC) Explain by the Tax Reform Act of 1984 that is designed to provide a tax incentive for exporting U.S.-produced goods
  • Definition Face-amount certificate Explain The holder makes payments periodicaly to the issues, and the issuer promies to pay the purchaser the face value at maturity or the
  • Definition Fair market price Explain hands between two parties, that both have knowledge of the relevant facts. Also referred to as market price
  • Definition Factor Explain A financial institution that buys a firm's accounts receivable and collects the accounts
  • Definition Factor analysis Explain explain a certain phenomenon, such as the return on a common stock, in terms of the behavior of a set of predictive factors
  • Definition Factor model Explain A way of decomposing the forces that influence a security's rate of return into common and firm-specific influences
  • Definition Factor portfolio Explain A well-diversified portfolio constructed to have a beta of 1.0 on one factor and a beta of zero on any other factors
  • Definition Factoring Explain Sale of a firm's accounts receivable to a financial institution known as a factor
  • Definition Fade Explain Refers to over-the-counter trading. Fill another OTC dealer's bid for or offer of stock
  • Definition Fail Explain settlement date either the seller does not deliver securities in proper form or the buyer does not to deliver funds in proper form
  • Definition Fair-and-equitable test Explain A set of requirements for a plan of reorganization to be approved by the bankruptcy court
  • Definition Fair game Explain An investment prospect that has a zero risk premium
  • Definition Fair price Explain contracts. Also called the theoretical futures price, which equals the spot price continuously compounded at the cost of carry rate for
  • Definition Fair price provision Explain See:Appraisal rights
  • Definition Fair rate of return Explain governments allow a public utility to earn on its investments and expenditures. Utilities then use these profits to pay investors and
  • Definition Fair value Explain equilibrium price for futures contracts. Also called the theoretical futures price, which equals the spot price continuously compounded at

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Fair Value, Fair Rate Of Return, Fair Price Provision, Fair Price, Fair Game, Fair-And-Equitable Test, Fail, Fade, Factoring, Factor Portfolio, Factor Model

Fair Value, Fair Rate Of Return, Fair Price Provision, Fair