I Need the Definition of...
Financial dictionary terms starting with “f”
F. Duane Ackerman is the former CEO of BellSouth Corporation from 1997 to 2006. He was also chairman of BellSouth from 1998 to 2006. See More.
A fabless company is a company that designs, develops and markets but does not manufacture silicon wafers. "Fab" is short for "fabrication." Fabless facilities do not have fabrication facilities. See More.
Face value, also referred to as par value or nominal value, is the value shown on the face of a security certificate, including currency. The concept most commonly applies to stocks and bonds, so it is particularly important to bond and preferred sto See More.
A face-amount certificate company is a company that borrows from investors and offers its assets or other securities as collateral. See More.
A facility is essentially a bank loan agreement that a company can use on and off for short-term borrowing purposes. See More.
In economics, the term factors of production refers to land, labor, and capital: the three inputs that make all commerce possible. Some economists also include entrepreneurship a factor of production. See More.
A fade is an investment strategy devoted to doing the opposite of the prevailing wisdom. In the brokerage sector, it also refers to a dealer's inability or refusal to fill an order at the prevailing bid/ask spread the dealer has published (that i See More.
The Fair and Accurate Credit Transactions Act (FACTA) allows consumers to get a free credit report from the three major credit reporting agencies every 12 months in order to help prevent identity theft. [InvestingAnswers Feature: The Hidden Costs See More.
The Fair Credit Billing Act (FCBA) is an amendment to the Truth in Lending Act. The FCBA is meant to protect consumers from unfair or inaccurate billing practices by providing a system for consumers to contest inaccurate credit card bills. See More.
The Fair Credit Reporting Act (FCRA) is the principle legislation for consumer credit rights in the U.S. It regulates the collection, distribution, and use of consumer credit information. See More.
The Fair Debt Collection Practices Act (FDCPA) is a section of the consumer credit protection act that aims to promote fairness in the collection of consumer debts and provide a way for clarifying and challenging debt information to ensure its validi See More.
The Fair Labor Standards Act (FLSA) contains well-known American labor law standards regarding minimum wage, overtime pay and child labor, among others. See More.
Fair market value is the price at which a willing seller sells a good or service to a willing buyer. See More.
Fair trade investing is an investment strategy whereby the investor only buys and sells companies that promote fair trade with suppliers in developing nations. See More.
Fair value is an estimate of a security's worth on the open market. There is no one way to calculate the fair value for a security, but calculations typically take into account future growth rates, profit margins, and risk factors, among other See More.
A fallen angel is a bond which once carried a high rating and displayed exceptional performance, but has since experienced a serious sustained decline in ratings and market demand. See More.
A falling knife describes a stock which has experienced a rapid decline in value in a short amount of time. Just like a falling knife, you don't want to catch these companies on their way down. [For explanations of nine other strange investmen See More.
Fannie Mae (OTC: FNMA) is the nickname for the Federal National Mortgage Association (FNMA). Established in 1938, Fannie Mae's purpose is to create a secondary market for the purchase and sale of mortgages. In 1968, Fannie Mae ceased to exist See More.
An FDIC insured account is a bank account whose balance is covered by the Federal Depository Insurance Corporation (FDIC) in the event of a bank failure. See More.
The Federal Deposit Insurance Corporation (FDIC) is an agency of the U.S. government that insures deposits in banks and thrift institutions, supervises the risks associated with these insured funds, and limits the repercussions on the economy when a See More.
The federal discount rate is the interest rate at which a bank can borrow from the Federal Reserve. See More.
The Federal Farm Credit System (FFCS) is a group of lenders that provide loans and other credit services to farmers, ranchers, and producers or harvesters of aquatic products. See More.
The Federal Financial Institutions Examination Council (FFIEC) is an interagency body of the U.S. government that provides standardized methods for examining financial institutions in accordance with numerous regulating bodies. See More.
Federal funds are monies held by banks at the Federal Reserve to meet reserve requirements. Funds in excess of reserve requirements can be loaned to other banks in order for those banks to meet reserve requirements. See More.
The federal funds rate is the interest rate banks charge each other on loans used to meet reserve requirements. The federal funds rate is often confused with the discount rate, which is the interest rate the Federal Reserve charges on loans dire See More.
Created by Congress in 1932, the Federal Home Loan Bank System (FHLB) is a lending system for financial institutions. See More.
The Federal Home Loan Mortgage Corporation (FHLMC or "Freddie Mac") is a government-sponsored entity that buys certain types of mortgages from banks and uses them to collateralize mortgage-backed securities. Freddie Mac also supplies a variety o See More.
Federal income tax is a tax on a range of certain kinds of income. Taxpayers generally calculate and pay federal income tax by filing an IRS Form 1040 by April 15 of each year. See More.
Established in 1938, the Federal National Mortgage Association or (Fannie Mae) has the purpose of creating a secondary market for the trading of mortgages. In 1968, Fannie Mae transitioned from a government entity to a quasi-governmental, federa See More.
The Federal Open Market Committee (FOMC) is main policy-making body of the Federal Reserve. The FOMC is responsible for conducting open market operations.An open market operation is the buying or selling of U.S. Treasury bills and bonds in the open m See More.
Federal Reserve Bank refers to any of the 12 branches of the Federal Reserve System overseeing the implementation of U.S. monetary policy. See More.
The Federal Reserve Board (FRB), officially called the Federal Reserve Board of Governors, is the Federal Reserve System's primary decision-making body. See More.
The Federal Reserve System (FRS) is the U.S.'s central bank. The Federal Reserve manages the economy's money supply, regulates the banking industry, acts as a clearinghouse for checks and other payments conducted through the banking system, o See More.
A federal tax bracket is range of incomes for which a certain federal income tax rate applies. See More.
The Federal Trade Commission (FTC) protects consumers and businesses from practices that can cause markets to become unfair and anti-competitive. See More.
The Federal Work Study Program (FWSP) is a form of financial aid awarded to a student who has completed a FAFSA and has demonstrated a financial need. The student is given a job (usually on-campus) and is paid by the school. See More.
Fiat money refers to any currency lacking intrinsic value that is declared legal tender by a government. See More.
A FICO score, created and calculated by the Fair Isaac Corporation, is a measure of an individual's creditworthiness. It is a mathematical summary of the information on a person's credit report. See More.
A fiduciary is a person or entity responsible for managing a qualified retirement plan in accordance with the Employee Retirement Income Security Act (ERISA). In a broader sense, a fiduciary is a person or entity responsible for acting in the be See More.
Fill or kill (FOK) is a client's instruction to his or her broker to either fill the entire order immediately or to cancel the order. See More.
A final maturity date is the date upon which all principal and interest must be repaid. See More.
A finance charge is the fee charged to a borrower for the use of credit extended by the lender. Broadly defined, finance charges can include interest, late fees, transaction fees, and maintenance fees and be assessed as a simple, flat fee or based on See More.
The Financial Accounting Standards Board (FASB) is an independent non-profit body responsible for the institution and interpretation of Generally Accepted Accounting Principles (GAAP). See More.
A financial adviser (also spelled financial advisor) is an educated investment professional who helps people and businesses set and meet long-term financial goals. See More.
A financial advisor (also spelled financial adviser) is an educated investment professional who helps people and businesses set and meet long-term financial goals. See More.
A financial analyst gathers and interprets data about securities, companies, corporate strategies, economies, or financial markets. Financial analysts are sometimes called securities analysts, equity analysts, or investment analysts (although there i See More.
Financial engineering is the quantitative, technical development of financial strategies and products. See More.
In general, a financial guarantee is a promise to take responsibility for another company's financial obligation if that company cannot meet its obligation. The entity assuming this responsibility is called the guarantor. See More.
A financial market is a location where buyers and sellers meet to exchange goods and services at prices determined by the forces of supply and demand. See More.
A financial planner is a credentialed professional who, for a fee, assists individuals and organizations in reaching their financial goals and increasing their net worth through careful investing and money management on the basis of their means and f See More.
The Financial Times 100 Index, or FTSE, is the most widely used benchmark for the performance of equities traded on the London Stock Exchange. See More.
Firewall refers to the strict separation between banking and brokerage activities within full-service banks, and between depository and brokerage institutions as stipulated by the Glass-Steagall Act of 1933. See More.
First in, first out (FIFO) is an accounting method for inventory valuation that assumes that goods are sold or used in the same chronological order in which they are acquired. See More.
A first-time homebuyer an individual or couple purchasing a home for the first time. The IRS also considers someone who has not owned a home in the past two years to be a first-time homebuyer. See More.
Fiscal policy refers to a government's spending and taxation policies intended to maintain economic stability, which is indicated by levels of unemployment, interest rates, prices and economic growth. See More.
A fiscal year is an accounting period of 365(6) days that does not necessarily correspond to the calendar year beginning on January 1st. The fiscal year is the established period of time when an organization's annual financial records commence and co See More.
A fiscal year-end is the end of a 12-month, 365-day, or 13-period (or other measure) period of time. See More.
The Fisher Effect is an economic hypothesis stating that the real interest rate is equal to the nominal rate minus the expected rate of inflation. See More.
A fixed annuity offers a fixed rate of return, and all its future payments are equal amounts. See More.
A fixed asset is anything that has commercial or exchange value, generates revenue, has a life longer than one year and has a physical form. See More.
A fixed cost is a cost which remains unchanged regardless of a company's level of output or revenue. It is the opposite of a variable cost. See More.
Fixed costs are costs that do not change when the quantity of output changes. Unlike variable costs, which change with the amount of output, fixed costs are not zero when production is zero. See More.
A fixed exchange rate pegs one country's currency to another country’s currency. It is also known as a pegged exchange rate. See More.
A fixed income security is an investment that pays regular income in the form of a coupon payment, interest payment or preferred dividend. See More.
A fixed interest rate is a type of loan or mortgage for which the rate of interest does not fluctuate over the life of the loan. See More.
Fixed-rate capital securities are fixed income securities that have features of both corporate bonds and preferred stock. See More.
The flag formation is a technical analysis pattern that occurs when there is a straight upward move in a stock. See More.
A flat tax is a system under which all taxpayers pay taxes at the same percentage rate of their total income. See More.
Flat yield curve refers to a yield curve which reflects little or no disparity between short-term and long-term interest rates. See More.
A flight to quality is the act of moving capital away from "risky" investments and toward "safer" investments due to uncertainty about the overall economy. See More.
A company's float is an estimate of the number of outstanding shares available for the public to trade. See More.
A floating exchange rate refers to changes in a currency's value relative to another currency (or currencies). See More.
A floating interest rate is an interest rate that can change from time to time. See More.
A floor broker, also known as a pit broker, is a brokerage firm employee who executes orders on the floor of a stock or commodity exchange on behalf of clients. See More.
A follow-on offering, also called a secondary offering, is a sale of stock by a company or by an existing shareholder of a company that is already publicly held. See More.
A follow-on public offer, also called a secondary offering, is a sale of stock by a company or by an existing shareholder of a company that is already publicly held. See More.
Fool's gold is a shiny mineral called pyrite which bears great resemblance to, and is often confused with, real gold. See More.
Footise is slang for the Financial Times 100 Index, or FTSE, which is the most widely used benchmark for the performance of equities traded on the London Stock Exchange. Started in January 1984 with an initial value of 1,000, the index contains See More.
Forbearance, which literally means "holding back," is a temporary suspension of loan payments agreed to by both lender and borrower as an alternative to defaulting on the loan (or foreclosure in the case of a mortgage). Lenders choose forebearance ag See More.
Forced liquidation is the sale of all investments within a customer's margin account by a brokerage firm, usually after the account has failed to meet margin requirements and margin calls. See More.
The foreclosure process can take several months, if not years, and it does long-term damage to a person's credit report. It is important to note that foreclosure laws vary by state, and they affect the order or duration of these steps. It is also See More.
Foreign currency effects refer to the fluctuations in returns on offshore investments as a result of changes in the value of the investment's denominated currency against that of the domestic currency. See More.
Foreign debt, otherwise known as external debt, is the part of total debt held by creditors of foreign countries, i.e. non-residents of the debtor's country. See More.
Foreign Exchange (Forex) refers to the foreign exchange market. It is the over-the-counter market in which the foreign currencies of the world are traded. It is considered the largest and most liquid market in the world. See More.
Foreign-exchange risk refers to the potential for loss from exposure to foreign exchange rate fluctuations. See More.
Forensic accounting is a form of investigative accounting which examines financial records in order to find evidence for a lawsuit or criminal prosecution. See More.
Forensic auditing examines individual or company financial records as an investigative measure that attempts to derive evidence suitable for use in litigation. See More.
Forever stock is a term used by InvestingAnswers to describe a stock that you can buy and hold for the rest of your life. See More.
Mistakes happen, and the IRS understands that (though the jury is still out regarding how forgiving the IRS is about mistakes). For this reason, the IRS provides the Form 1040X, which requires a line-by-line description of any necessary adjustments, See More.
Taxpayers must file a Form 1045 within one year after the end of the year in which the loss or unused credit occurred, and they will likely also have to file amended returns. It is important to note that using Form 1045 can trigger the Alternative Mi See More.
Form 1065 is part of IRS Schedule K-1. You may have heard of the K-1 -- it is the form that reports income from a partnership and is sent to the partners so they can include that income on their personal tax returns if necessary. This an important fa See More.
Form 1078 is only for people who became resident aliens before 2001. In our example, that means John Doe would've filed a W-9 after 2001. Regardless, John's income is subject to U.S. taxes and may be subject to taxes in his home country as we See More.
Mortgage lenders must supply borrowers with Form 1098 every year. The amount of mortgage interest on this form is important, because in most cases it lowers the taxpayer's tax liability. If the borrower has more than one mortgage lender, he or sh See More.
Form 1099-B is useful for reporting and calculating taxes that apply to capital gains. For instance, the form will disclose the proceeds of the sale and how much of those proceeds are capital gains, as well as whether those gains are long-term or sho See More.
Financial institutions must create Form 1099-DIV for dividends and distributions of at least $10 in a tax year. Taxable dividend distributions from life insurance contracts and employee stock ownership plans are not subject to 1099-DIV reporting (the See More.
Interest is taxable income. The Form 1099-INT shows how much interest a person earned from an institution in a tax year. The IRS requires brokerage firms, banks, mutual funds and other financial institutions to file Form 1099s on interest they pay du See More.
According to the IRS, a Form 1099-Misc is appropriate for reporting the following: Payments of $600 or more for services performed for a trade or business by people not treated as its employees (such as subcontractors). Prizes or awards ($600 o See More.
The Fortune 100 is an annual list of the 100 largest companies in the United States. Fortune magazine publishes the list. See More.
The Fortune 1000 is an annual list of the 1,000 largest companies in the United States. Fortune magazine publishes the list. See More.
The Fortune 500 is an annual list, published by Fortune magazine, of the 500 largest companies by revenue in the United States. See More.
A forward contract is a private agreement between two parties giving the buyer an obligation to purchase an asset (and the seller an obligation to sell an asset) at a set price at a future point in time. The assets often traded in forward contract See More.
A forward dividend yield is a stock's annualized dividend based on its latest declared dividend payment. See More.
Forward earnings are the profits a company (or companies) expect to generate during a future period of time. See More.
The forward price-to-earnings ratio (forward P/E) is a valuation method used to compare a company’s current share price to its expected per-share earnings. See More.
Forward pricing is the SEC-mandated policy of processing buy and sell orders for open-ended mutual fund shares at the net asset value (NAV) as of the next market close (not the most recent market close). See More.
Usually reserved for discussions about Treasuries, the forward rate (also called the forward yield) is the theoretical, expected yield on a bond several months or years from now. See More.
Forward trading, also called front running, occurs when stockbrokers personally purchase shares of a particular stock while knowing that their firm plans to purchase numerous shares of the same stock. Forward trading is considered unethical and is of See More.
A foul weather fund is a mutual fund that outperforms the market during poor market conditions. The goal of the fund is to minimize or benefit from the effects of a downward move in the market. See More.
The free application for federal student aid (FAFSA) is a form filled out by college or graduate students who are eligible for government-sponsored financial aid. See More.
Free asset ratio refers to the net assets of an insurance company as a percentage of its total assets. Free assets are the same as net assets, that is, assets that are not obligated to insurance policies. See More.
Free cash flow (FCF) is a measure of how much cash a business generates after accounting for capital expenditures such as buildings or equipment. This cash can be used for expansion, dividends, reducing debt, or other purposes. See More.
Free cash flow per share is a measure of how much cash per share a business generates after accounting for capital expenditures like equipment or buildings. Free cash flow is available to be used for expansion, dividends, debt reduction, or other pur See More.
Free cash flow to the firm (FCFF) is the cash available to pay investors after a company pays its costs of doing business, invests in short-term assets like inventory, and invests in long-term assets like property, plants and equipment. The firm's in See More.
A company's free float refers to the number of outstanding shares that are available to the public for trade. See More.
Free on board (FOB) is a contractual term that refers to the requirement that the seller deliver goods at the seller's cost via a specific route to a destination designated by the buyer. See More.
Frictional unemployment refers to the portion of the unemployment rate that results from labor market turnovers. This unemployment is ongoing and includes job transitions and communication lags between employers and potential employees, people enteri See More.
Front running, also called forward trading, occurs when stockbrokers know their firm plans to purchase numerous shares of a particular stock, so they purchase shares of the same stock for themselves. Front running is considered unethical and, many ti See More.
A front-end load is a fee paid to purchase a specific investment. It is expressed as a percentage of the amount invested. Front-end load mutual funds are often referred to as "A Shares." See More.
Frontier market describes up-and-coming economies that tend to be smaller and less developed than emerging markets like China and India. See More.
A frozen account refers to a situation where an individual is unable to withdraw money from a bank account due to a court order. See More.
A full-service broker executes trades for clients, but also provides research, advice, retirement planning and tax assistance. See More.
A full-time student is a person enrolled in a post-secondary institution of learning who is taking at least the minimum number of course credit hours according to the institution's requirements. See More.
With a fully depreciated asset, the accumulated depreciation equals the original cost of the asset. See More.
A fully indexed interest rate equals an adjustable-rate mortgage's (ARM) interest rate benchmark plus a spread. See More.
A person is fully vested when a financial instrument or account becomes wholly owned by the investor. See More.
Fund usually refers to mutual fund, which is an open-ended investment company that pools investors' money into a fund operated by a portfolio manager. This manager then turns around and invests this large pool of shareholder money in a portfolio of v See More.
A fund manager is an investment professional who oversees the investments within a portfolio. See More.
Fundamental analysis attempts to understand and predict the intrinsic value of stocks based on an in-depth analysis of various economic, financial, qualitative, and quantitative factors. See More.
Funds from Operations (FFO) is a measure of cash generated by a real estate investment trust (REIT). It is important to note that FFO is not the same as Cash from Operations, which is a key component of the indirect-method cash flow statement. See More.
Funds from operations per share (FFOPS) is a measure of cash generated by a real estate investment trust (REIT). It is important to note that FFOPS is not the same as Cash from Operations Per Share, which is a key component of the indirect-method cas See More.
Funds settlement refers to the transfer of funds from buyer to seller and the transfer of an asset's title from seller to buyer. See More.
Future value (FV) refers to a method of calculating how much the present value (PV) of an asset or cash will be worth at a specific time in the future. See More.
Futures are financial contracts giving the buyer an obligation to purchase an asset (and the seller an obligation to sell an asset) at a set price at a future point in time. See More.
A futures commission merchant (FCM) is a company or individual certified to negotiate the sale and purchase of futures contracts, as well as oversee the delivery of underlying commodities to investors. See More.
Futures contracts give the buyer an obligation to purchase an asset (and the seller an obligation to sell an asset) at a set price at a future point in time. See More.