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 1. The stated principal amount of a debt instrument.
2. The value printed value on a banknote or coin.
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.
Fail A transaction that has not been settled in a timely manner.
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.
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.
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.
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.
fark a common word among TCC traders, it is our way of swearing. Its edgy and gets the point across.
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.
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 Deposit Insurance Corporation - FDIC The U.S. Corporation insuring deposits in the US 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 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 Open Market Committee - FOMC The body that sets the interest rate and credit policies of the Federal Reserve System.
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.
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 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.
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 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.
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/her own profits.
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.
Fighting the Tape The action of placing a trade or trades that go against the ticker tape.
Filing Status The category that defines the type of tax return form an individual will use. The filing status is closely tied to marital status. The various ways of filing include:
Fill The action of completing or satisfying an order for a security or commodity.
Fill or Kill - FOK An order to fill a transaction immediately and completely or not at all.
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 Designated as the organization for establishing standards of financial accounting and reporting. FASB standards govern the preparation of financial reports and are recognized by the SEC.
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 Engineering The creation of new and improved financial products through innovative design or repackaging of existing financial instruments.
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 An investment professional who assists individuals put together a financial plan and coordinate various financial activities.
Financial Portal A website that provides a variety of financial data and information to its clients.
Financial Risk The risk that a company will not have adequate cash flow to meet financial obligations.
Financial Supermarket A financial company that offers a wide range of services to its clients
Fine Print Non-standard terms included in a contract, often in a small font.
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.
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 inventory management and valuation method where the products acquired first are the ones sold first.
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 ˝) 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 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 Year - FY Any 12-month period that a company uses for accounting purposes.
Fisher Effect A theory describing the long-run relationship between inflation and interest rates.
Fisher's Separation Theorem A theory stating that a firm's choice of investments is separate from its owner's attitudes toward investments. Also known as portfolio separation.
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 Tangible property, owned by a firm, that is used in the production of its income, but not expected to be consumed or converted into cash.
Fixed Cost A cost that remains constant, regardless of any change in a company's activity.
Fixed Income Arbitrage A hedge fund strategy that attempts to profit from arbitrage opportunities in interest rate securities.
Fixed Interest Rate A loan or mortgage with an interest rate that will remain at a certain rate for the entire term of the loan.
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-Income Security An investment that provides a return in the form of fixed periodic payments and eventual return of principle at maturity.
Fixed-Rate Capital Securities A security issued by a corporation that has a $25 par value and offers investors a combination of features from corporate bonds and preferred stock.
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, they mark a consolidation before the previous move resumes. Also known as a "pennant."
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 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.
Force Majeure A French term literally translated as "great 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 Currency Effects The extent to which the changes in a foreign currency affects the return on a foreign investment.
Foreign Direct Investment - FDI An investment abroad, usually where the company being invested in is controlled by the foreign corporation.
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 market, where brokerage firms and banks are connected over an electronic network that allows them to convert the currencies of most countries.
Forfaiting The act of purchasing an exporter's receivables (the amount the importer owes 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, due to default on contractual obligations or conditions.
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 T A NASD form that is used for reporting an equity trade that was executed after the 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 A method of treating lump-sum distributions as if they occurred over a five- or ten-year period. Forward averaging is only available 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.
Four C's Short for carat, cut, clarity, and color. These four characteristics are the main determinants of a diamond's value.
Franked Dividend Dividends on which an Australian resident company has already paid corporate tax.
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.
Fraudulent Conveyance The illegal transference 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.
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 A measure of how much cash a company has after paying its bills for ongoing activities and growth.
Free Cash Flow for the Firm - FCFF A firm's operating income less expenses, taxes, and changes in net working capital and investments.
Free Cash Flow per Share A measure of a company's financial flexibility. It is calculated as net income plus all non-cash expenses less dividends and capital expenditures. The total is then divided by the number of shares outstanding.
Free Crowd System A system of commodity trading whereby floor members can make bids and offers simultaneously for personal or customer accounts, which is common in the U.S.
Free On Board - FOB A trade term requiring the seller to deliver goods on board a vessel designated by the buyer. The seller fulfills his obligations to deliver when the goods have passed over the ship's rail.
Freeriding 1. An illegal practice where an underwriting syndicate member withholds part of a new securities issue and then sells it later at a higher price.
2. An 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 duration.
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 in a financial services company.
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.
Thebuying of a stock, then promoting the stock endlessly, trying to stimulate the stocks movement. You then call for a specific target and have you sale of the stock below that target and use your promo to create buying into your sell. You then suggest once the stock fails to meet your target that its ready for a pull.
Front-End Load A mutual fund commission or sales fee that is charged at the time shares are purchased.
Frozen Account An account to which no purchases can be charged until the full purchase price of the intended order is already on deposit in the account.
FTSE A company that specializes in index calculation. Although not part of a stock exchange, co-owners include the London Stock Exchange and the Financial Times.
Fulcrum Point A fulcrum point is a point of inflection (POI) on a graph where the pattern of the payout of a financial instrument changes direction.
Full Carry A futures market in which the price difference between delivery months equals the full cost of carrying the commodity from one period to the next. Carrying costs include interest, insurance, and storage.
Full Charge A term used to describe the event in which a futures contract holder pays a carrying charge that is adequate enough to cover the entire amount of expenses incurred.
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 Service Broker A broker that provides a large variety of services to its clients. These services include 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 Stock Any stock with a par value of $100 per share.
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 Valued A stock that has reached a price that accurately reflects the strength of the company.
Fund Manager The person responsible for investing a mutual fund's assets, implementing its investment strategy, and managing the day-to-day portfolio trading.
Fund of Funds A mutual fund which invests in other mutual funds.
Fundamental Analysis A method of evaluating securities by attempting to measure the intrinsic value of a particular stock. Fundamental analysts study everything from the overall economy and industry conditions, to the financial condition and management of companies.
Funded Debt A 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, are interchangeable.
Furniture, Fixtures & Equipment - FF&E Items not normally considered permanently attached to a structure, but are counted as a bond-able cost in situations of new construction or major renovation.
Future Income Tax Income tax that is deferred because of discrepancies between a company's tax return and the tax calculated on their financial statements.
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:
Futures A financial contract that requires the sale of financial instruments or physical commodities for future delivery, usually on a commodity exchange. Futures contracts try to "bet" what the value of an index or commodity will be at some date in the future.
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 An exchange traded agreement to buy or sell a particular type and grade of commodity for delivery at an agreed upon place and time in the future. Futures contracts are transferable between parties.
Futures Equivalent The number of futures contracts needed to be associated with a speculative option position.
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.