Super Finance Glossary

Over 10,000 financial glossary terms...

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Browsing by the letter "F"

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Flotation (rotation) Cost
Definition: The costs associated with creating capital through the issue of new stocks or bonds, including the compensation earned by the investment banker plus legal, accounting and printing expenses.
Flow Of Funds
Definition: In the context of municipal bonds, refers to the statement displaying the priorities by which municipal revenue will be applied to the debt. In the context of mutual funds, refers to the movement of money into or out of a mutual funds or between or among various fund sectors.
Flow-through Basis
Definition: An account for an investment credit to show all income statement benefits of the credit in the year of acquisition, rather than spreading them over the life of the asset.
Flow-through Method
Definition: The practice of reporting to shareholders using straight-line depreciation but using accelerated depreciation for tax purposes and "flowing through" the lower income taxes actually paid to financial statements prepared for shareholders.
Flower Bond
Definition: Government bonds that when owned at the time of death are acceptable at par in payment of federal estate taxes.
Fluctuation
Definition: A price or interest rate change.
Fluctuation Limit
Definition: The limit created by the commodity exchange that halts trading on a future if the price of the future changes, in either direction, more than a previously set amount.
Flurry
Definition: A drastic volume increase in a specific security.
FO
Definition: The two-character ISO 3166 country code for FAROE ISLANDS.
Focus List
Definition: Used in the context of general equities. Investment banks published list of buy and sell recommendations from its research department; signified by a flashing "F" on Quotron.
Footsie (FTSE)
Definition: Financial Times (FT)-Actuaries 100 index: "Dow average" of London.
For A Number
Definition: Used in the context of general equities. Implies that the quantity mentioned is not his total but instead is only approximate, and to open him up more will obligate one to participate.
For Your Information (FYI)
Definition: A prefix to a security price indicating that the quote is for information purposes only, and not an offer to trade.
For/At
Definition: Used in the context of general equities. Conjunctions used in an order, market summary, or trade recap that signify a bid or an offer, respectively. See: On.
Forbearance
Definition: A bank resolution method that exempts certain distressed institutions that are operating in a safe and sound manner, from minimum capital requirements. The forbearance program used by the FDIC in the mid-1980s was designed for well-managed, economically sound institutions with concentrations of 25 percent or more of their loan portfolios in agricultural or energy loans. Forbearance is also a means of handling a delinquent loan. A "forbearance agreement" is a written agreement providing that a lender will delay exercising its rights (in the case of a mortgage, foreclosure) as long as the borrower performs in accordance with certain agreed-upon terms.
Forbes 500
Definition: Forbes magazine's list of the largest publicly owned corporations in the United States according to sales, assets, profits, and market value.
Force Majeure
Definition: Events outside the control of the parties. These events are acts of man, nature, governments and regulators, or impersonal events. Contract performance is forgiven or extended by the period of force majeure.
Force Majeure Risk
Definition: The risk that there will be prolonged interruption of operations for a project finance enterprise due to fire, flood, storm, or some other factor beyond the control of the project's sponsors.
Forced Conversion
Definition: Occurs when a convertible security is called in by the issuer, usually when the underlying stock is selling well above the conversion price. The issuer thus assures the bonds will be retired without requiring any cash payment. Upon conversion into common, the carrying value of the bonds becomes part of a corporation's equity, thus strengthening the balance sheet and enhancing future debt capability.
Forced Liquidation
Definition: The situation in which a customer's account is liquidated (open positions are offset) by the brokerage firm holding the account, usually after notification that the account is under-margined due to adverse price movements and failure to meet margin calls.
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