F
A Nasdaq stock symbol specifying that the stock is a foreign company.
Fabless Company
The Fabless Semiconductor Association (FSA) defines fabless as follows:
Fabless (without fab) refers to the business methodology of outsourcing the manufacturing of silicon wafers, which hundreds of semiconductor companies have adopted. Fabless companies focus on the design, development and marketing of their products and form alliances with silicon wafer manufacturers, or foundries.
Face Value
The nominal value or dollar value of a security stated by the issuer. For stocks, it is the original cost of the stock shown on the certificate. For bonds, it is the amount paid to the holder at maturity (generally $1,000). Also known as "par value" or simply "par".
Face-Amount Certificate Company
A type of investment firm that issues debt securities to its investors. These securities are called face-amount certificates and are backed by security interest on assets such as real property or other securities. This is similar in nature to mortgage bond debt financing.
Facility
A term used to describe financial assistance programs offered by lending institutions to help companies requiring capital
Factor
1. A financial intermediary that purchases receivables from companies.
2. In terms of mortgages, the ratio of principal outstanding to the original balance.
Fade
1. A contrarian investment strategy used to trade against the prevailing trend. "Fading the market" is typically very high risk, requiring the trader to have a high risk tolerance. A fade trader would sell when a price is rising and buy when it's falling. Also known as "fading".
2. In a dealer market, it is the failure of a dealer to honor a quote when a customer or another dealer wants to trade.
Fail
A transaction that has not been settled before a deadline.
Failed Break
A price movement through an identified level of support or resistance that does not have enough momentum to maintain its direction. Since the validity of the breakout (or breakdown) is compromised, many traders close their positions and the price fails to make the sharp move that many were expecting.
A failed break is also commonly referred to as a "false breakout".
Fair Funds for Investors
Provision introduced in 2002, under Section 308(a) of the Sarbanes-Oxley Act. Fair Funds for Investors was put into place to benefit those investors who have lost money because of the illegal or unethical activities of individuals or companies that violate securities regulations. Essentially, this provision enabled the Securities and Exchange Commission (SEC) to add civil money penalties to disgorgement funds for the relief of the victims of stock swindles.
Fair Market Value
The price that a given property or asset would fetch in the marketplace, subject to the following conditions:
1. Prospective buyers and sellers are reasonably knowledgeable about the asset they are behaving in their own best interests and are free of undue pressure to trade.
2. A reasonable time period is given for the transaction to be completed.
Given these conditions, an asset's fair market value should represent an accurate valuation or assessment of its worth.
Fair Value
1. The estimated value of all assets and liabilities of an acquired company used to consolidate the financial statements of both companies.
2. In the futures market, fair value is the equilibrium price for a futures contract. This is equal to the spot price after taking into account compounded interest (and dividends lost because the investor owns the futures contract rather than the physical stocks) over a certain period of time.
Fair Weather Fund
A mutual fund that tends to perform well during favorable economic conditions.
Fairness Opinion
A report put together by qualified analysts or advisors providing to key decision makers an evaluation of and facts about a merger or acquisition.
Fairway Bond
A type of bond that accrues interest if the embedded index or interest-rate option underlying the bond remains within a specified range.
Fakeout
A term used in technical analysis that refers to a situation in which a trader enters into a position in anticipation of a future transaction signal or price movement, but the signal or movement never develops and the asset moves in the opposite direction.
Fallen Angel
1. A bond that was once investment grade but has since been reduced to junk bond status.
2. A stock that has fallen substantially from its all time highs.
Falling Knife
A stock whose price has fallen significantly in a short period of time.
False Market
A market where prices are manipulated and impacted by erroneous information, preventing the efficient negotiation of prices. These types of markets will often be marred by volatile swings because the true value of the market is clouded by the misinformation.
Fama and French Three Factor Model
An asset pricing model (actually a modification of CAPM) designed by Gene Fama and Ken French. This model considers the fact that two particular types of stocks outperform markets on a regular basis: value and small-caps.
Fama and French Three Factor Model
An asset pricing model (actually a modification of CAPM) designed by Gene Fama and Ken French. This model considers the fact that two particular types of stocks outperform markets on a regular basis: value and small-caps.
Family Limited Partnership - FLP
A type of partnership designed to centralize family business or investment accounts. FLPs pool together a family's assets into one single family-owned business partnership that family members own shares of. FLPs are frequently used as an estate tax minimization strategy, as shares in the FLP can be transferred between generations, at lower taxation rates than would be applied to the partnership's holdings
Family of Funds
A group of mutual funds offered by one investment or fund company. Each mutual fund has different characteristics and can range depending on investment objective.
Also referred to as a "Mutual Fund Family" or simply a "Fund Family".
Fannie Mae - Federal National Mortgage Association - FNMA
A publicly traded company working to assure that mortgage money is readily available for existing and potential homeowners in the United States.
Fast Market
A financial market that has a combination of high volatility and heavy trading
Fast Market Rule
In the United Kingdom, the exchange may determine that a market movement is so sharp that quotes cannot practically be kept current. Under the Fast Market Rule, market makers may be permitted to trade outside quoted ranges where updating quotes is deemed impractical.
Fast Tape
A type of futures market that occurs when a single traded price is unavailable because of the rapid and large number of transactions occurring in the pit or ring.
Fastest Growing EPS Tab (Best 3 Year Fundamental Rating)
Calculated by dividing a company's total after-tax profits by the company's number of common shares outstanding. Can be used as an indicator of growth and profitability. This tab in IBD's "Top Rated Stocks Under $10" product screens stocks for Annual EPS Growth Rate of 30% or higher, over the last 3 years.
Featherbedding
Term used to describe the practice of a labor union requiring an employer to hire more workers than necessary for a particular task.
Fed Model
A model thought to be used by the Federal Reserve that hypothesizes a relationship between long-term treasury notes and the market return of equities.
Federal Covered Advisor
An investment advisor that manages over $25 million in assets for other investors.
Federal Debt
The total amount of money that the United States federal government owes to creditors. The government's creditors include all individuals, businesses, governments and other organizations that own U.S. government debt securities. The federal debt exists as a result of federal government shortfalls, or deficit budgets in which the government's expenses exceed its revenues. The federal debt does not include any debts in the name of individuals, corporations, and state or municipal governments.
Federal Deposit Insurance Corporation - FDIC
The U.S. corporation insuring deposits in the U.S. against bank failure. The FDIC was created in 1933 to maintain public confidence and encourage stability in the financial system through the promotion of sound banking practices.
Federal Farm Credit System - FFCS
In the United States, a network of federally chartered financial institutions designed to provide credit-related services to the agricultural and farming sectors of the economy. In total, this government-sponsored enterprise comprises approximately 100 financial institutions that serve all 50 states and Puerto Rico.
Federal Funds
Funds deposited to regional Federal Reserve Banks by commercial banks, including funds in excess of reserve requirements.
Federal Funds
Funds deposited to regional Federal Reserve Banks by commercial banks, including funds in excess of reserve requirements.
Federal Funds Rate
The interest rate at which a depository institution lends immediately available funds (balances at the Federal Reserve) to another depository institution overnight.
Federal Home Loan Bank System (FHLB)
Created by the Federal Home Loan Bank Act of 1932 in response to the depressive economic conditions of the era which had impaired the U.S. banking system. Its primary purpose was to increase the amount of funds available for lending institutions who provide mortgages and similar loan agreements to individuals. Also referred to as the "FHL Bank System".
Federal Insurance Contributions Act - FICA
A law in the U.S. requiring a deduction from paychecks and income that goes toward the Social Security program and Medicare. Both employees and employers are responsible for sharing the FICA payments. The act stipulates that there is a maximum that can be allocated to Social Security, while there is no maximum on what can go toward Medicare. Once the maximum to Social Security is achieved, the contributor's FICA payment will not increase the Social Security portion but will continue to increase the contribution to Medicare. The amount of the FICA payment depends on the income of the contributor, so the higher the income, the higher the FICA payment.
Federal Open Market Committee - FOMC
The branch of the Federal Reserve Board that determines the direction of monetary policy. The FOMC is composed of the Board of Governors, which has seven members, and five reserve-bank presidents. The president of the Federal Reserve Bank of New York serves continuously, while the presidents of the other reserve banks rotate in their service of one-year terms.
Federal Poverty Level - FPL
The set minimum amount of income that a family needs for food, clothing, transportation, shelter and other necessities. In the United States, this level is determined by the Department of Health and Human Services. FPL varies according to family size. The number is adjusted for inflation and reported annually in the form of poverty guidelines. Public assistance programs, such as Medicaid in the U.S., define eligibility income limits as some percentage of FPL.
Federal Reserve Bank
The banks that carry out Fed operations, including controlling the money supply and regulating member banks. There are 12 District Feds, headquartered in Boston, New York, Philadelphia, Cleveland, St. Louis, San Francisco, Richmond, Atlanta, Chicago, Minneapolis, Kansas City and Dallas.
They are also known as "district Feds".
Federal Reserve Board - FRB
The governing body of the Federal Reserve System. The seven members of the Board of Governors are appointed by the president, subject to confirmation by the Senate.
Federal Reserve Board's Discount Rate
An important market variable representing what it costs member banks to borrow money from the Fed. A cut in the rate encourages borrowing and increases money supply; whereas a hike in the rate does the opposite.
Federal Reserve System
The central bank of the United States. The Fed, as it is commonly called, regulates the U.S. monetary and financial system. The Federal Reserve System is composed of a central governmental agency in Washington, D.C. (the Board of Governors) and twelve regional Federal Reserve Banks in major cities throughout the United States.
Federal Trade Commission - FTC
An independent federal agency whose main goals are to protect consumers and to ensure a strong competitive market by enforcing a variety of consumer protection and antitrust laws. These laws guard against harmful business practices and protect the market from anti-competitive practices such as large mergers and price-fixing conspiracies
Fee-Based Investment
An investment account in which the advisor's compensation is based on a set percentage of the client's assets instead of on commissions. Contrast this to commission-based investment, in which the advisor makes money based on the amount of trades made or the amount of assets sold to the client.
Feed Ratio
A ratio used in futures markets to express the profit margin associated with the feeding and selling of animals.
Feeder Fund
A fund that conducts virtually all of its investing through another fund (called the master fund).
Fiat Money
Money that a government has declared to be legal tender, despite the fact that it has no intrinsic value and is not backed by reserves.
Fibonacci Arc
A charting technique consisting of three curved lines that are drawn for the purpose of anticipating key support and resistance levels, and areas of ranging.
Fibonacci Channel
A variation of the Fibonacci retracement pattern in which the trendlines run diagonally rather than horizontally. These channels are used to estimate areas of support and resistance in the same way as the horizontal Fibonacci retracement levels.
Fibonacci Clusters
A tool used in technical analysis that combines various numbers of Fibonacci retracements, all of which are drawn from different highs and lows. Fibonacci clusters are indicators which are usually found on the side of a price chart and look like a series of horizontal bars with various degrees of shading. Each retracement level that overlaps with another makes the horizontal bar on the side darker at that price level. The most significant levels of support and resistance are found where the Fibonacci cluster is the darkest.
Fibonacci Extensions
Levels used in Fibonacci retracement to forecast areas of support or resistance. Extensions consist of all levels drawn beyond the standard 100% level and are used by many traders to determine areas where they will wish to take profits. The most popular extension levels are 161.8%, 261.8% and 423.6%.
Fibonacci Fan
A charting technique consisting of three diagonal lines that use Fibonacci ratios to help identify key levels of support and resistance.
Fibonacci Numbers/Lines
Leonardo Fibonacci was an Italian mathematician born in the 12th century. He is known to have discovered the "Fibonacci numbers," which are a sequence of numbers where each successive number is the sum of the two previous numbers.
e.g. 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, etc.
These numbers possess a number of interrelationships, such as the fact that any given number is approximately 1.618 times the preceding number.
Fibonacci Retracement
A term used in technical analysis that refers to the likelihood that a financial asset's price will retrace a large portion of an original move and find support or resistance at the key Fibonacci levels before it continues in the original direction. These levels are created by drawing a trendline between two extreme points and then dividing the vertical distance by the key Fibonacci ratios of 23.6%, 38.2%, 50%, 61.8% and 100%.
Fibonacci Time Zones
An indicator used by technical traders to identify periods in which the price of an asset will experience a significant amount of movement. This charting technique consists of a series of vertical lines that correspond to the sequence of numbers known as Fibonacci numbers (1, 2, 3, 5, 8, 13, 21, 34, etc.). Once a trader chooses a starting position (most commonly following a major move) on the chart, a vertical line is placed on every subsequent day that corresponds to the position in the Fibonacci number sequence.
FICO Score
A standard credit score which makes up a substantial portion of a credit report that credit bureaus sell to lenders so they can asses an applicant's credit risk and whether to extend them credit.
It is an acronym for the creators of the FICO score, Fair Isaac Credit Organization.
Fiduciary
1. A person legally appointed and authorized to hold assets in trust for another person. The fiduciary manages the assets for the benefit of the other person rather than for his or her own profit.
2. A loan made on trust rather than against some security or asset.
Fifty Percent Principle
A principle that predicts that, before the observed trend continues forward, a price correction of approximately 1/2 to 2/3 of the change in price will occur.
Fifty Percent Principle
A principle that predicts that, before the observed trend continues forward, a price correction of approximately 1/2 to 2/3 of the change in price will occur.
Fighting the Tape
The action of placing a trade or trades that go against the ticker tape.
Filing Status
The category defining the type of tax-return form an individual will use. The filing status is closely tied to marital status. These are five filing statuses:
1. Single individual.
2. Married persons filing jointly or surviving spouse.
3. Married persons filing separately.
4. Head of households.
5. Qualifying window(er) with dependent child.
Fill
The action of completing or satisfying an order for a security or commodity. It is the basic act in transacting stocks, bonds or any other type of security.
Fill Or Kill - FOK
An order to fill a transaction immediately and completely or not at all.
Filter
A set of criteria used to help an investor narrow down which financial instruments or conditions of financial instruments are the most profitable.
Filter Rule
Rules that attempt to guide investors towards buying and selling patterns that will be the most profitable.
Final Dividend
The final dividend declared at a company's Annual General Meeting (AGM) for any given year. This amount is calculated after all financial statements are recorded and the directors are aware of the company's profitability and financial health.
Final Prospectus
A legal document stating the price of a newly issued security, the delivery date and other facts that are important for investors.
Finance
The science that describes the management of money, banking, credit, investments, and assets.
Financial Accounting
Reporting of the financial position and performance of a firm through financial statements issued to external users on a periodic basis.
Financial Accounting Standards Board - FASB
A seven-member independent board consisting of accounting professionals who establish and communicate standards of financial accounting and reporting in the United States. FASB standards, known as generally accepted accounting principles (GAAP), govern the preparation of corporate financial reports and are recognized as authoritative by the Securities and Exchange Commission.
Financial Asset
An asset that derives value because of a contractual claim. Stocks, bonds, bank deposits, and the like are all examples of financial assets.
Financial Crimes Enforcement Network - FinCEN
A network administered by the United States Department of the Treasury whose goal it is to prevent and punish criminals and criminal networks that participate in money laundering. FinCEN operates domestically and internationally, and it consists of three major players: law-enforcement agencies, the regulatory community and the financial-services community.
Financial Engineering
The creation of new and improved financial products through innovative design or repackaging of existing financial instruments.
Financial Instrument
A real or virtual document representing a legal agreement involving some sort of monetary value. In today's financial marketplace, financial instruments can be classified generally as equity based, representing ownership of the asset, or debt based, representing a loan made by an investor to the owner of the asset. Foreign exchange instruments comprise a third, unique type of instrument. Different subcategories of each instrument type exist, such as preferred share equity and common share equity, for example.
Financial Intermediary
An institution that acts as the middleman between investors and firms raising funds. Often referred to as financial institutions.
Financial Performance
A company's ability to generate new resources, from day-to-day operations, over a given period of time.
Financial Planner
A qualified investment professional who assists individuals and corporations meet their long-term financial objectives by analyzing the client's status and setting a program to achieve these goals. They are specialized in tax planning, asset allocation, risk management, retirement and/or estate planning.
Also referred to as a "Registered Financial Planner," when the financial planner is registered with the Registered Financial Planner Institute (RFPI).
Financial Porn
A slang term used to describe sensationalist reports of financial news and products causing irrational buying that can be detrimental to investors' financial health. Short-term focus by the media on a financial topic can create excitement that does little to help investors make smart, long-term financial decisions, and in many cases clouds investors' decision-making ability.
Financial Portal
A website that provides a variety of financial data and information, acting as an information hub for clients who are individual investors requiring timely financial news and data to make their investment decisions.
Financial Risk
The risk that a company will not have adequate cash flow to meet financial obligations.
Financial Supermarket
A company offering a wide range of financial services (e.g. stock, insurance and real-estate brokerage).
Financing
The act of providing funds for business activities, making purchases or investing. Financial institutions and banks are in the business of financing as they provide capital to businesses, consumers and investors to help them achieve their goals.
Financing
The act of providing funds for business activities, making purchases or investing. Financial institutions and banks are in the business of financing as they provide capital to businesses, consumers and investors to help them achieve their goals.
Financing
The act of providing funds for business activities, making purchases or investing. Financial institutions and banks are in the business of financing as they provide capital to businesses, consumers and investors to help them achieve their goals.
Fine Print
Non-standard terms included in a contract, often in a small font.
Finite Reinsurance
A type of reinsurance that transfers over only a finite or limited amount of risk. Risk is reduced through accounting or financial methods, along with the actual transfer of economic risk. By transferring less risk to the reinsurer, the insurer receives coverage on its potential claims at a lower cost than traditional reinsurance.
Finmins
A term used to refer to the financial ministers that head the federal banks of major economic powers. Depending on the country, a financial minister is responsible for implementing the monetary policy of a country, mainly through the adjustment of borrowing rates.
Fire Sale
A situation in which the prices of securities in the financial markets are considered to be very low.
Firewall
Legal barriers that prevent both the transference of inside information and the performance of financial transactions between commercial and investment banks.
Firm Commitment
1. A lending institution's promise to enter into a loan agreement with a specific entity, within a certain period of time.
2. An underwriter's agreement to assume all inventory risk and purchase all securities directly from the issuer for sale to the public at the price specified.
Firm Quote
A price quote on a security, made by a dealer or market maker, that guarantees a bid or ask price up to the amount quoted. This differs from a nominal quote wherein the price and quantity of a bid or ask quote are not firmly posted.
First Call
A company that gathers research notes and earnings estimates from brokerage analysts. The estimate is compared to the actual reported earnings, and then the difference between the two is the earnings surprise.
First In, First Out - FIFO
An asset-management and valuation method in which the assets produced or acquired first are sold, used or disposed of first. FIFO may be used by a individual or a corporation
First In, Still Here - FISH
An accounting buzzword that describe when companies still have inventory on hand that is not being sold due to inattention or obsolescence. While not an official type of accounting treatment, the term is named after the LIFO and FIFO accounting methods.
First Notice Day
The first day that a notice of intent to deliver a commodity can be made by a clearinghouse to a buyer in fulfillment of a given month's futures contract.
First-Time Homebuyer
An IRA owner who is exempt from the early-distribution penalty (which applies to IRA distributions that occur before the IRA owner reaches age 59.5) for distributing funds from his or her IRA to buy, build, or rebuild a home when having had no interest in a main home during the two-year period ending on the date of acquisition of the home for which the distribution is being made.
Fiscal Agent
An organization, such as a bank or trust company, that takes responsibility for the fiscal duties of an unrelated party.
Fiscal Capacity
In economics, the ability of groups, institutions, etc. to generate revenue. The fiscal capacity of governments depends on a variety of factors including industrial capacity, natural resource wealth and personal incomes.
Fiscal Deficit
When a government's total expenditures exceed the revenue that it generates (excluding money from borrowings). Deficit differs from debt, which is an accumulation of yearly deficits.
Fiscal Policy
Government spending policies that influence macroeconomic conditions. These policies affect tax rates, interest rates and government spending, in an effort to control the economy.
Fiscal Policy
Government spending policies that influence macroeconomic conditions. These policies affect tax rates, interest rates and government spending, in an effort to control the economy.
Fiscal Quarter End
The date in which a company's fiscal quarter ends. On a Daily Graph, this is noted by month, day and year. The fiscal quarter that marks the company's fiscal year end is presented with its date in blue. To determine the fiscal quarter number of a particular item, use the fiscal year end quarter and count backward (right to left).
* Indicates quarterly earnings were reported within the last 14 days.
Fiscal Year - FY
Any 12-month period that a company uses for accounting purposes.
Fiscal Year-End
The completion of a one-year, or 12-month, accounting period.
Fisher Effect
A theory describing the long-run relationship between inflation and interest rates.
Fisher Effect
A theory describing the long-run relationship between inflation and interest rates.
Fisher's Separation Theorem
A theory stating that:
1. A firm's choice of investments are separate from its owner's attitudes towards the investments.
2. It is possible to separate a firm's investment decisions from the firm's financial decisions.
Five Against Bond Spread - FAB
A spread in the futures markets created by taking offsetting positions in futures contracts for five-year treasury bonds and long-term (15-30 year) treasury bonds.
Five Against Note Spread - FAN
A spread in the futures markets created by taking offsetting positions in futures contracts for five-year treasury notes and ten-year treasury bonds.
Five-Year Rule
If a retirement account owner dies before the required beginning date for receiving distributions, the beneficiary may distribute the inherited assets over his/her (the beneficiary's) life expectancy or distribute the assets under the five-year rule. Under the five-year rule, the assets must be distributed by December 31 of the fifth year since the retirement account owner's death.
Fixed Annuity
An insurance contract in which the insurance company makes fixed dollar payments to the annuitant for the term of the contract, usually until the annuitant dies. The insurance company guarantees both earnings and principal.
Fixed Asset
A long-term tangible piece of property that a firm owns and uses in the production of its income and is not expected to be consumed or converted into cash any sooner than at least one year's time.
Fixed Asset
A long-term tangible piece of property that a firm owns and uses in the production of its income and is not expected to be consumed or converted into cash any sooner than at least one year's time.
Fixed Cost
A cost that remains constant, regardless of any change in a company's activity.
Fixed Exchange Rate
A country's exchange rate regime under which the government or central bank ties the official exchange rate to another country's currency (or the price of gold). The purpose of a fixed exchange rate system is to maintain a country's currency value within a very narrow band. Also known as pegged exchange rate.
Fixed Income
A type of investing or budgeting style for which real return rates or periodic income is received in regular intervals at reasonably predictable levels. Fixed-income budgeters and investors are often one and the same - typically, retired individuals who rely on their investments to provide a regular, stable income stream. This demographic tends to invest heavily in fixed-income investments because of the reliable returns they offer.
Fixed Income Clearing Corporation - FICC
An agency that deals with the confirmation, settlement and delivery of fixed-income assets in the U.S. The agency ensures the systematic and efficient settlement of U.S. Government securities and mortgage-backed security transactions in the market.
Fixed Interest Rate
A loan or mortgage with an interest rate that will remain at a predetermined rate for the entire term of the loan.
Fixed Term
Describes an investment vehicle, usually some kind of debt instrument, that has a fixed time period of investment. With a fixed-term investment, the investor parts with his or her money for a specified period of time and is repaid his or her principal investment only at the end of the investment period.
Fixed-Charge Coverage Ratio
A ratio that indicates a firm's ability to satisfy fixed financing expenses, such as interest and leases. It is calculated as the following:
Fixed-For-Fixed Swaps
An arrangement between two parties (known as counterparties) in which both parties pay a fixed interest rate that they could not otherwise obtain outside of a swap arrangement.
Fixed-For-Fixed Swaps
An arrangement between two parties (known as counterparties) in which both parties pay a fixed interest rate that they could not otherwise obtain outside of a swap arrangement.
Fixed-For-Floating Swap
An advantageous arrangement between two parties (counterparties), in which one party pays a fixed rate, while the other pays a floating rate.
Fixed-Income Arbitrage
An investment strategy that attempts to profit from arbitrage opportunities in interest rate securities. When using a fixed-income arbitrage strategy, the investor assumes opposing positions in the market to take advantage of small price discrepancies while limiting interest rate risk.
Fixed-Income Security
An investment that provides a return in the form of fixed periodic payments and eventual return of principal at maturity. Unlike a variable-income security, where payments change based on some underlying measure such as short-term interest rates, the payments of a fixed-income security are known in advance.
Fixed-Income Style Box
A nine-box matrix that displays the characteristics of international and domestic fixed-income investment funds. On the horizontal axis, funds are separated into one of three categories - either short term, intermediate term, or long term, depending upon the average effective duration of the bonds contained in the fund. On the vertical axis, funds are separated into one of three categories depending upon the average investment grade of the bonds in the fund. Bond funds with average ratings from 'AAA' to 'AA' are considered high quality. Funds with average ratings from 'A' to 'BBB' are considered medium quality. Those with average ratings below 'BB' are considered low quality.
Fixed-Rate Capital Securities
A security issued by a corporation that has a $25 par value (although some are issued with a $1,000 par value) and offers investors a combination of the features of corporate bonds and preferred stock. These securities provide the benefits of attractive yields, fixed monthly, quarterly or semiannual income, investment time frames that are generally predictable (20-49 years, although some are perpetual), liquidity and investment-grade credit quality (in most cases).
FJD
In currencies, this is the abbreviation for the Fiji Dollar.
FKP
In currencies, this is the abbreviation for the Falkland Islands Pound.
Flag
A technical charting pattern that looks like a flag with a mast on either side. Flags result from price fluctuations within a narrow range and mark a consolidation before the previous move resumes. Likewise, "pennant" formations are usually treated like flag formations because they are very similar in appearance, tend to show up at the same place in an existing trend, and have the same volume and measuring criteria.
Flash Price
Ticker tape display designation used when volume on an exchange is so heavy that the tape runs more than five minutes behind. The "flash price" interrupts the delayed prices to show the current price of a heavily traded stock.
Flat
1. A price that is neither rising nor declining.
2. In forex, the condition of being neither long nor short in a particular currency. Also referred to as 'being square'.
3. A bond that is trading without accrued interest.
Flat base
One of three positive chart patterns to look for when doing technical analysis. It usually occurs after a stock has advanced off of a 'cup with handle' or 'double bottom' pattern. The 'flat base' moves straight sideways in a fairly tight price range for at least five weeks and does not correct more than 8% to 12%.
Flat base
One of three positive chart patterns to look for when doing technical analysis. It usually occurs after a stock has advanced off of a 'cup with handle' or 'double bottom' pattern. The 'flat base' moves straight sideways in a fairly tight price range for at least five weeks and does not correct more than 8% to 12%.
Flat Benefit Formula
A method of calculating an employer's contribution to an employee's defined benefit plan whereby the employer multiplies an employee's months of service by a predetermined flat monthly rate.
Flat Benefit Formula
A method of calculating an employer's contribution to an employee's defined benefit plan whereby the employer multiplies an employee's months of service by a predetermined flat monthly rate.
Flat Benefit Formula
A method of calculating an employer's contribution to an employee's defined benefit plan whereby the employer multiplies an employee's months of service by a predetermined flat monthly rate.
Flat Tax
A system that taxes everyone at the same rate, regardless of their income bracket.
Flat Yield Curve
A yield curve in which there is little difference between short-term and long-term rates for bonds of the same credit quality. This type of yield curve is often seen during transitions between normal and inverted curves.
Flat Yield Curve
A yield curve in which there is little difference between short-term and long-term rates for bonds of the same credit quality. This type of yield curve is often seen during transitions between normal and inverted curves.
Flexible Exchange Option - FLEX
An option, generally written by a clearing house, whose expiration date, strike price, and exercising style can be modified.
Flight to Quality
The action of investors moving their capital away from riskier investments to the safest possible investment vehicles. This flight is usually caused by uncertainty in the financial or international markets. However, at other times, this move may be an instance of investors cutting back on the more volatile investments for the conservative ones (i.e. diversifying) without much consideration of the international markets.
Flight to Quality
The action of investors moving their capital away from riskier investments to the safest possible investment vehicles. This flight is usually caused by uncertainty in the financial or international markets. However, at other times, this move may be an instance of investors cutting back on the more volatile investments for the conservative ones (i.e. diversifying) without much consideration of the international markets
Flight to Quality
The action of investors moving their capital away from riskier investments to the safest possible investment vehicles. This flight is usually caused by uncertainty in the financial or international markets. However, at other times, this move may be an instance of investors cutting back on the more volatile investments for the conservative ones (i.e. diversifying) without much consideration of the international markets.
Flip
A point when traders shift from having more long positions to having more short positions.
Flipper
A short-term investor or day trader who buys pre-IPO shares, swiftly spinning them out into public markets for a quick profit.
Float
The total number of shares publicly owned and available for trading. The float is calculated by subtracting restricted shares from outstanding shares.
Also known as "free float".
Floater
A bond or other type of debt whose coupon rate changes with market conditions (short-term interest rates). Also known as "floating-rate debt".
Floater Insurance
A type of insurance policy that covers property that is easily movable and provides additional coverage over what normal insurance policies do not. This can cover anything from jewelery to expensive stereo equipment.
Floating Exchange Rate
A country's exchange rate regime where its currency is set by the foreign-exchange market through supply and demand for that particular currency relative to other currencies. Thus, floating exchange rates change freely and are determined by trading in the forex market. This is in contrast to a "fixed exchange rate" regime.
Floating-Rate Note - FRN
A note with a variable interest rate. The adjustments to the interest rate are usually made every six months and are tied to a certain money-market index. Also known as a "floater".
Floor
The lowest acceptable limit as restricted by controlling parties.
Floor Broker - FB
An employee of a member firm who executes trades on the exchange floor on behalf of the firm's clients
Floor Trader - FT
An exchange member who executes transactions from the floor of the exchange exclusively for their own account.
Floortion
A type of option that gives the holder the right, but not the obligation, to purchase or sell an interest rate floor at a specific price during a predetermined period of time. The only upfront cost to the holder is the premium the holder has to pay to purchase the option.
Floortion
A type of option that gives the holder the right, but not the obligation, to purchase or sell an interest rate floor at a specific price during a predetermined period of time. The only upfront cost to the holder is the premium the holder has to pay to purchase the option.
Flotation
The process of changing a private company into a public company by issuing shares and soliciting the public to purchase them.
Flotation
The process of changing a private company into a public company by issuing shares and soliciting the public to purchase them.
Flotation Cost
The costs associated with the issuance of new securities.
Flower Bond
Fixed income products that were originally purchased by investors at a discount for the purpose of paying federal estate taxes upon their maturity.
FMAN
An acronym representing the months February, May, August, and November.
Focus List
A list of recommended stocks published by an investment firm's research department. Focus lists generally consist of a small number of stocks that the firm believes are the most attractive opportunities at the time.
Focused Fund
Funds that contain a large holding of a small amount of stocks.
Follow-On Offering
An offering of additional shares after a company has had an initial public offering.
Follow-Through Day Concept
System developed by William J. O'Neil to identify an important change in general market direction from a definite downtrend to a new uptrend. From the beginning of any attempted rally during a definite downtrend, a 'follow-through' day is identified when the index closes up 1.7% or more for the day on a significant increase in volume from the day before. The first two or three days of a rally are normally disregarded as it has not yet proven it will succeed and 'follow-through' with power and conviction. 'Follow-through' days therefore generally occur the fourth through seventh day of the attempted rally. They serve as a confirmation that the market has really changed direction and is in a new uptrend.
Fool's Gold
Also known as Iron Pyrite, fool's gold is a gold colored mineral that is often mistaken for real gold.
Footnote
Additional information provided in a company's financial statements. Footnotes report the details and additional information that are left out of the main reporting documents, such as the balance sheet and income statement. This is done mainly for the sake of clarity because footnotes can be quite long, and if they were included, they would cloud the data reported in the financial statements.
Footsie
A slang term for the FTSE 100 index.
Forbearance
A postponement of loan payments, granted by a lender or creditor, for a temporary period of time. This is done to give the borrower time to make up for overdue payments.
Force Majeure
A French term literally translated as "greater force", this clause is included in contracts to remove liability for natural and unavoidable catastrophes that interrupt the expected course of events and restrict participants from fulfilling obligations.
Forced Conversion
The occurrence of an issuer of a convertible security exercising the right to call the issue, forcing investors to convert their securities into the predetermined number of shares.
Forced Liquidation
An action taken by brokerage houses that offsets and closes all positions within delinquent customer accounts in order to reduce exposure.
Forecasting
The process of analyzing current and historical data to determine future trends
Foreclosure
A situation in which a homeowner is unable to make principal and/or interest payments on his or her mortgage, so the lender, be it a bank or building society, can seize and sell the property as stipulated in the terms of the mortgage contract.
Foreign
1. A non-U.S. company with securities trading on the North American market.
2. In general, any corporation organized under the laws of another country.
Foreign Bond
A bond that is issued in a domestic market by a foreign entity, in the domestic market's currency.
Foreign Branch Bank
A type of foreign bank that is obligated to follow the regulations of both the home and host countries. Because the foreign branch banks' loan limits are based on the parent bank's capital, foreign banks can provide more loans than subsidiary banks.
Foreign Currency Convertible Bond - FCCB
A type of convertible bond issued in a currency different than the issuer's domestic currency. In other words, the money being raised by the issuing company is in the form of a foreign currency. A convertible bond is a mix between a debt and equity instrument. It acts like a bond by making regular coupon and principal payments, but these bonds also give the bondholder the option to convert the bond into stock.
Foreign Currency Effects
The gain or loss on foreign investments due to changes in the relative value of assets denominated in a currency other than the principal currency with which a company normally conducts business. A rising domestic currency means foreign investments will result in lower returns when converted back to the domestic currency. The opposite is true for a declining domestic currency.
Foreign Direct Investment - FDI
An investment abroad, usually where the company being invested in is controlled by the foreign corporation.
Foreign Institutional Investor - FII
An investor or investment fund that is from or registered in a country outside of the one in which it is currently investing. Institutional investors include hedge funds, insurance companies, pension funds and mutual funds.
Foreign Institutional Investor - FII
An investor or investment fund that is from or registered in a country outside of the one in which it is currently investing. Institutional investors include hedge funds, insurance companies, pension funds and mutual funds.
Foreign Official Dollar Reserves - FRODOR
A term coined by economist Ed Yardeni relating international liquidity to the effect of foreign central banks on U.S. monetary policy. It is measured as the sum of U.S. Treasury and U.S. agency securities held by foreign banks.
Foreign Plan
A retirement savings plan created by a person or a company to benefit individuals who are not Canadian residents. These beneficiaries may or may not be Canadian citizens, but the plan applies to income they earn for services they perform outside of Canada.
Foreign-Exchange Risk
1. The risk of an investment's value changing due to changes in currency exchange rates.
2. The risk that an investor will have to close out a long or short position in a foreign currency at a loss due to an adverse movement in exchange rates. Also known as "currency risk" or "exchange-rate risk".
Forensic Accounting
Forensic Accounting utilizes accounting, auditing, and investigative skills to conduct an examination into a company's financial statements. Thus, providing an accounting analysis that is suitable for court.
Forex - FX
The foreign exchange (also known as "forex" or "FX") market is the place where currencies are traded. The overall forex market is the largest, most liquid market in the world with an average traded value that exceeds $1.9 trillion per day and includes all of the currencies in the world.
Forex Futures
An exchange-traded contract to buy or sell a specified amount of a given currency at a predetermined price on a set date in the future. All forex futures are written with a specific termination date, at which point delivery of the currency must occur unless an offsetting trade is made on the initial position.
Forfaiting
The purchasing of an exporter's receivables (the amount importers owe the exporter) at a discount by paying cash. The forfaiter, the purchaser of the receivables, becomes the entity to whom the importer is obliged to pay its debt.
Forfeiture
The loss of an asset, or rights to an asset, as a result of defaulting on contractual obligations or conditions.
Form 1099-DIV
A form sent to investors by investment fund companies. The form is a record of all taxable capital gains and dividends paid to an investor, including those that have been re-invested in a given taxation year. The amounts stated on the form represent the amounts that fund companies are attributing to each investor's investment return for the year and reporting to the IRS. Investors use Form 1099-DIV to help report income received from investments on their tax return each year.
Form 1099-R
An Internal Revenue Service (IRS) form with which an individual reports his or her distributions from annuities, profit-sharing plans, retirement plans, IRAs, insurance contracts and/or pensions. The following are some of the items included on the form: the gross distribution paid during the given tax year, the amount of the distribution that is taxable, the federal income tax that has been withheld, the contributions made to the investment or premiums paid, and a code that represents the type of distributions made to the holder of the plan.
Form 13F
An SEC reporting form filed by institutional investment managers in accordance with the provisions of section 13(f) of the Securities and Exchange Act of 1934, which states that all institutional investment managers who are managing over $100 million on the last trading day of any month of the calendar year must disclose their holdings on a quarterly basis.
Form 144
A form that must be filed with the SEC when an executive officer, director, or affiliate of a company places an order to sell that company's stock. Also known as Rule 144.
Form 3
A document that must be filed with the Securities and Exchange Commission (SEC) by an insider affiliated with a public company's operation or by any investor owning 10% or more of the company's outstanding shares.
Form 4
A document that must be filed with the Securities and Exchange Commission (SEC) whenever there is a material change in the holdings of company insiders (including shareholders owning 10% or more of the company's outstanding stock).
Form 5
A document that must be filed with the Securities and Exchange Commission (SEC) by an insider who has conducted insider transactions during the year which were not previously reported via a Form 4 submission.
Form S-4
A form that must be submitted to the Securities and Exchange Commission in the event of a merger or acquisition between two companies. The form must also be submitted for exchange offers.
Form T
A form required by the NASD for reporting an equity trade executed after normal market hours.
Formal Tax Legislation
The steps required to propose a new tax law or a change to an existing one. The process involves the President and Congress.
Fortune 500
An annual list of the 500 largest companies in the United States. The list is compiled using the most recent figures for revenue
Forward Averaging
Treating lump-sum retirement-plan distributions as if they occurred over a five- or ten-year period. Forward averaging is available only to qualified plan participants who were born before 1936 and meet certain requirements.
Forward Averaging
Treating lump-sum retirement-plan distributions as if they occurred over a five- or ten-year period. Forward averaging is available only to qualified plan participants who were born before 1936 and meet certain requirements.
Forward Contract
A cash market transaction in which delivery of the commodity is deferred until after the contract has been made. Although the delivery is made in the future, the price is determined on the initial trade date.
Forward Earnings
A company's forecasted, or estimated, earnings made by analysts or by the company itself. Forward earnings differ from trailing earnings (which is the figure that is quoted more often) in that they are a projection and not a fact. There is are many methods used to calculate forward earnings and no single established way.
Forward Integration
A business strategy that involves a form of vertical integration whereby activities are expanded to include control of the direct distribution of its products.
Forward Market
The over-the-counter trading of forward contracts.
Forward Points
The number of basis points added to or subtracted from the current spot rate to determine the forward rate. When points are added to the spot rate, there is a forward points premium when points are subtracted from the spot rate, there is a points discount.
Forward Price To Earnings - Forward P/E
A measure of the price-to-earnings ratio (P/E) using forecasted earnings for the P/E calculation. While the earnings used are just an estimate and are not as reliable as current earnings data, there is still benefit in estimated P/E analysis. The forecasted earnings used in the formula can either be for the next 12 months or for the next full-year fiscal period.
Also referred to as "estimated price to earnings".
Forward Pricing
A Securities and Exchange Commission regulation that requires that investment companies price all of their buy and sell orders of fund shares according to the next net asset value (NAV). This valuation process is for open-end mutual fund transactions in which the mutual fund itself is constantly issuing and redeeming mutual fund shares at the most recent NAV per share.
Forward Rate
The amount that it will cost to deliver a currency, commodity, or some other asset some time in the future.
Forward Rate Agreement - FRA
An over-the-counter contract that determines the rate of interest, or the currency exchange rate, to be paid or received on an obligation beginning at some future start date. Agreements pertaining to interest rates are normally done using LIBOR.
Also known as a "future rate agreement".
Forward Swap
A swap agreement created through the synthesis of two swaps differing in duration for the purpose of fulfilling the specific time-frame needs of an investor. Also referred to as a "forward start swap", "delayed start swap", and a "deferred start swap."
Forward Triangular Merger
A type of merger that occurs when the subsidiary of the acquiring corporation merges with the target firm.
Foul Weather Fund
A mutual fund that tends to perform well during poor economic conditions.
Found Money
Money or funds that an investor possesses but just discovers.
Four Cs
Short for carat, cut, clarity and color. These four characteristics are the main determinants of a diamond's value.
Fourier Analysis
A type of mathematical analysis that attempts to identify patterns or cycles in a time series data set which has already been normalized. By first removing any effects of trends or other complicating factors from the data set, the effects of periodic cycles or patterns can be identified more accurately, leaving the analyst with a good estimate of the direction that the data under analysis will take in the future. Named after the nineteenth-century French mathematician and physicist Joseph Fourier.
Fourth Market
The trading of exchange-listed securities between institutions on a private over-the-counter computer network, rather than over a recognized exchange such as the New York Stock Exchange (NYSE) or Nasdaq. Trades between institutions will often be made in large blocks and without a broker, allowing the institutions to avoid brokerage fees.
Fox-Trot Economy
A term coined by investment strategist Jeffery Saut that describes a period in which "fast-fast" growth economic figures are expected to be followed by periods of "slow-slow" figures.
Fractal
A type of pattern used in technical analysis to predict a reversal in the current trend. A fractal pattern consists of five bars and is identified when the price meets the following characteristics:
1. A shift from a downtrend to an uptrend occurs when the lowest bar is located in the middle of the pattern and two bars with successively higher lows are positioned around it.
2. A shift from an uptrend to a downtrend occurs when the highest bar is located in the middle of the pattern and two bars with successively lower highs are positioned around it.
Fractional Share
A share of equity that is less than one full share. Fractional shares usually come about from stock splits, dividend reinvestment plans (DRIPs) and similar corporate actions. Normally, fractional shares cannot be acquired from the market.
Fractional Share
A share of equity that is less than one full share. Fractional shares usually come about from stock splits, dividend reinvestment plans (DRIPs) and similar corporate actions. Normally, fractional shares cannot be acquired from the market.
Franked Dividend
An arrangement in Australia that elimintates the double taxation of dividends. Dividends are dispersed with tax imputations attached to them. The shareholder is able to reduce the tax paid on the dividend by an amount equal to the tax imputation credits. Basically taxation of dividends has been partially paid by the company issuing the dividend.
Franked Income
After-tax investment income that is distributed by one U.K. company to another. This income is often distributed in the form of dividends. The idea behind franked income is to prevent double taxation.
Fraption
A type of option that gives the option holder the opportunity to enter into a forward rate agreement at a specific strike price during a predetermined amount of time. Buyers use fraptions to protect against falls in interest rates at the cost of a slight premium.
Also known as an "interest rate guarantee".
Fraudulent Conveyance
The illegal transfer of property to another party in order to defer, hinder or defraud creditors.
Freddie Mac - Federal Home Loan Mortgage Corp - FHLMC
A congressionally chartered institution that buys mortgages from lenders and resells them as securities on the secondary mortgage market.
Free Alongside - FAS
A trade term requiring the seller to deliver goods to a named port alongside a vessel designated by the buyer. "Alongside" means that the goods are within reach of a ship's lifting tackle.
When used in trade terms, the word "free" means the seller has an obligation to deliver goods to a named place for transfer to a carrier.
Free and Clear
A slang phrase describing the situation of someone when he or she gains outright ownership of an asset, such as when it is completely paid off and no creditor has a claim on the property.
Free Asset Ratio - FAR
The market value of an insurance company's assets in excess of its policy liabilities
Free Carrier - FCA
A trade term requiring the seller to deliver goods to a named airport, terminal, or other place where the carrier operates. Costs for transportation and risk of loss transfer to the buyer after delivery to the carrier.
When used in trade terms, the word "free" means the seller has an obligation to deliver goods to a named place for transfer to a carrier.
Free Cash Flow To Equity - FCFE
This is a measure of how much cash can be paid to the equity shareholders of the company after all expenses, reinvestment and debt repayment.
Free Credit Balance
The cash held by a broker in a customer's margin account that can be withdrawn by the customer at any time without restriction. This balance is calculated as the total remaining money in a margin account after margin requirements, short sale proceeds and special miscellaneous accounts are taken into consideration.
Free Market
A market economy based on supply and demand with little or no government control. A completely free market is an idealized form of a market economy where buyers and sells are allowed to transact freely (i.e. buy/sell/trade) based on a mutual agreement on price without state intervention in the form of taxes, subsidies or regulation.
In financial markets, free market stocks are securities that are widely traded and whose prices are not affected by availability.
In foreign-exchange markets, it is a market where exchange rates are not pegged (by government) and thus rise and fall freely though supply and demand for currency.
Free Market
A market economy based on supply and demand with little or no government control. A completely free market is an idealized form of a market economy where buyers and sells are allowed to transact freely (i.e. buy/sell/trade) based on a mutual agreement on price without state intervention in the form of taxes, subsidies or regulation.
In financial markets, free market stocks are securities that are widely traded and whose prices are not affected by availability.
In foreign-exchange markets, it is a market where exchange rates are not pegged (by government) and thus rise and fall freely though supply and demand for currency.
Free On Board - FOB
A trade term requiring the seller to deliver goods on board a vessel designated by the buyer. The seller fulfills its obligations to deliver when the goods have passed over the ship's rail.
When used in trade terms, the word "free" means the seller has an obligation to deliver goods to a named place for transfer to a carrier.
Free-Crowd System
A system of commodity trading in which floor members can make bids and offers simultaneously for personal or customer accounts, which is common in the U.S.
Free-Crowd System
A system of commodity trading in which floor members can make bids and offers simultaneously for personal or customer accounts, which is common in the U.S.
Freeriding
1. An illegal practice in which an underwriting syndicate member withholds part of a new securities issue and later sells it at a higher price.
2. The illegal activity of buying a stock and selling it before paying for the purchase.
Friction Cost
The implicit and explicit costs associated with market transactions.
Frictional Unemployment
Unemployment that is always present in the economy, resulting from temporary transitions made by workers and employers or from workers and employers having inconsistent or incomplete information.
Frictionless Market
A theoretical trading environment where all costs and restraints associated with transactions are non-existent.
Friendly Hands
A nickname for investors in an IPO who will likely hold onto the security for a long time.
Friends and Family Shares
When a company gives pre-IPO shares to friends and family members.
Front Fee
The premium charged upon the initial purchase of a compound option.
Front Office
The sales personnel and corporate finance employees in a financial services company. It's in the front office where revenues are generated.
Front Running
The unethical practice of a broker trading an equity based on information from the analyst department before his or her clients have been given the information.
Front-End Load
A commission or sales fee charged at the time of the initial purchase for an investment, usually mutual funds and insurance policies. It is deducted from the investment amount and thus, lowers the size of the investment. For mutual funds, the use of loads is suggested to prevent frequent trading of the fund, which can hurt a fund if it has to hold large cash reserves to meet payouts.
Front-End Ratio
A ratio that indicates what portion of an individual's income is used to make mortgage payments. It is calculated as an individual's monthly housing expenses divided by his or her monthly gross income and is expressed as a percentage. Monthly gross income is simply annual income divided by 12 (months). Lenders use the front-end ratio in conjunction with the back-end ratio to approve mortgages.
Calculated as:
Front-End Ratio = Monthly Housing Expenses / Monthly Income
Frontspread
A type of options spread in which a trader holds more short positions than long positions. This type of spread has unlimited risk of loss while also limiting profit potential. This type of trade is often implemented by professional traders who believe that the price of an underlying asset will make a calculated move higher or that volatility will decrease.
Also known as a "ratio vertical spread".
Frozen Account
An account to which no withdrawals or purchases can be charged. This usually occurs when the account holder fails to pay promptly for purchases charged to the account. For example, cash accounts are frozen for 90 days until the full purchase price of the intended order is paid in full.
FTSE
A company that specializes in index calculation. Although not part of a stock exchange, co-owners include the London Stock Exchange and the
Fulcrum Fee
An additional, performance-based fee an advisor charges a client. The advisor charges the fee when he or she achieves a return above a specified benchmark.
Fulcrum Point
A point of inflection (POI) on a graph where the pattern of the financial instrument's payout changes direction.
Full Carry
A futures market in which the price difference between contracts with two different delivery months equals the full cost of carrying the commodity from the delivery month of the first contract to the next. Carrying costs include interest, insurance and storage. Also known as "full carry market" or "full carrying charge market".
Full Charge
The event in which the price of a futures contract covers all of the carrying charges of the underlying asset, such as storage and insurance. Also referred to as a "full carry".
Full Ratchet
An anti-dilution provision that, for any shares of common stock sold by a company after the issuing of an option (or convertible security), applies the lowest sale price as being the adjusted option price or conversion ratio for existing shareholders.
Full Stock
A stock with a par value of $100 per share. This can be either a preferred or common share.
Full-Service Broker
A broker that provides a large variety of services to its clients, including research and advice, retirement planning, tax tips, and much more. Of course, this all comes at a price, as commissions at full-service brokerages are much higher than those at discount brokers.
Full-Time Student
A status that is important for determining dependency exemptions. An individual enrolled in a post-secondary institution may be eligible for certain tax breaks.
Fully Diluted Shares
The total number of shares that would be outstanding if all possible sources of conversion (such as convertible bonds and stock options) were exercised. Companies often release specific financial figures in terms of fully diluted shares outstanding (such as the company's profits reported on a fully diluted per share basis) to allow investors the ability to properly assess the company's financial situation.
Fully Subscribed
A situation in which an underwriting firm has successfully sold to investors all of its available issues of a public offering of securities. When the issue is fully subscribed, the underwriter's risk of being undersubscribed (being unable to sell its allotment of the issue) is completely removed.
Also referred to in slang terms as "pot is clean".
Fully Valued
A stock whose price analysts believe reflects the market's recognition of the company's underlying fundamental earnings power and therefore is unlikely to rise further in price. If the stock goes up from that price, it is called overvalued. If the stock goes down, it is termed undervalued.
Fund of Funds
A mutual fund that invests in other mutual funds
Fundamental Analysis
A method of evaluating a stock by attempting to measure its intrinsic value. Fundamental analysts study everything from the overall economy and industry conditions, to the financial condition and management of companies.
Fundamental Rank
This compares a stock's Fundamental Rating to the other stocks in its industry group. For example, 5th out of 100 indicates a stock's Fundamental Rating is better than 95% of its group. If 2 or more stocks within a group have the same 1-99 rating, they will receive the same Fundamental Rank. For example, if 3 stocks have a 99 Fundamental Rating, they will all three be ranked best in group. The stock with the next best rating will be ranked 4th in group.
Fundamental Rating
This rating examines vital fundamental data for each company and compares it to over 10,000 stocks. Ratings are on a 1 to 99 scale, with 99, for example, representing companies outperforming 99% of all other stocks based on key fundamental factors.
These factors include:
·Annual and quarterly sales and earnings growth rates
·Sales and earnings acceleration
·Earnings stability
·Profit margins and return on equity (ROE)
Components are not equally weighted.
This rating should not be considered a sole indicator to buy or sell a stock but should be used along with the other Stock Checkup Ratings, as well as price and volume charts.
Fundamentals
Information relating to the economic well-being of a company such as revenue, earnings, assets, liabilities and growth. These factors are used to determine the worth of an investment in fundamental analysis.
Funded Debt
Long-term debt that matures after more than one year.
Funding Agreement
Illiquid insurance contracts that provide guaranteed principal repayment and interest payments for a predetermined period of time.
Funds From Operations - FFO
A figure used by real estate investment trusts (REITS) to define the cash flow from their operations. It is calculated by adding depreciation and amortization expenses to earnings, and sometimes quoted on a per share basis.
Fungibility
The interchangeability of listed options, futures contracts, and other instruments dependent upon identical terms.
Fungibles
Goods, securities or instruments that are equivalent and, therefore, interchangeable. In other words, they are goods that consist of many identical parts which can be easily replaced by other, identical goods. If the goods are sold by weight or number, this is a good sign that they are fungible
Furniture, Fixtures & Equipment - FF&E
Movable furniture, fixtures or other equipment that are have no permanent connection to the structure of a building or utilities. These items depreciate substantially but definitely are important costs to consider when valuing a company, especially in liquidation.
Furthest Out
Mainly pertaining to options and futures, this is the options or futures contract that has the most distant deliverly month or expiration.
Future Income Tax
Income tax that is deferred because of discrepancies between a company's tax return and the tax calculated on the company's financial statements. Future income tax occurs when there is a greater amount of deductions on taxable income than on the net income that is calculated on a company's income statement.
Future Value - FV
The value of an asset or cash at a specified date in the future that is equivalent in value to a specified sum today. There are two ways to calculate FV:
1) For an asset with simple annual interest: = Original Investment x (1+(interest rate*number of years))
2) For an asset with interest compounded annually: = Original Investment x ((1+interest rate)^number of years)
Futures
A financial contract obligating the buyer to purchase an asset (or the seller to sell an asset), such as a physical commodity or a financial instrument, at a predetermined future date and price. Futures contracts detail the quality and quantity of the underlying asset they are standardized to facilitate trading on a futures exchange. Some futures contracts may call for physical delivery of the asset, while others are settled in cash. The futures markets are characterized by the ability to use very high leverage relative to stock markets.
Futures can be used either to hedge or to speculate on the price movement of the underlying asset. For example, a producer of corn could use futures to lock in a certain price and reduce risk (hedge). On the other hand, anybody could speculate on the price movement of corn by going long or short using futures.
Futures Bundle
A type of futures order that enables an investor to purchase a predefined number of futures contracts in each consecutive quarterly delivery month for a period of two or more years.
Futures Commission Merchant - FCM
A merchant involved in the solicitation or acceptance of commodity orders for future delivery of commodities related to the futures contract market.
Futures Contract
A contractual agreement, generally made on the trading floor of a futures exchange, to buy or sell a particular commodity or financial instrument at a pre-determined price in the future. Futures contracts detail the quality and quantity of the underlying asset they are standardized to facilitate trading on a futures exchange. Some futures contracts may call for physical delivery of the asset, while others are settled in cash.
Futures Equivalent
The number of futures contracts needed to be associated with a speculative option position.
Futures Exchange
Traditionally, a term referring to a central marketplace where futures contracts and options on futures contracts are traded. More recently, with the growth in electronic trading, it is also used to describe the activity of futures trading itself.
Futures Market
An auction market in which participants buy and sell commodity/future contracts for delivery on a specified future date. Trading is carried on through open yelling and hand signals in a trading pit.
Futures Pack
A type of futures order enabling purchase of a predefined number of futures contracts in four consecutive delivery months.
Futures Spread
An arbitrage technique whereby you buy one commodity and sell another contract of the same commodity to capitalize on a discrepancy in prices.
Call Us @ 09887188505
snpnifty@yahoo.com
