  |
- Face value
- Related: Par value
- Fair price
- The
equilibrium price for futures con-tracts. Also called the theoretical
futures price.
- Feasible portfolio
- A portfolio that an investor can construct given the assets available.
- Feasible set of portfolios
- The collection of all feasible portfolios.
- Federal funds
- Deposits held in reserve for depository institutions at their district
Federal Reserve Bank.
- Federal funds market
- The market where banks can borrow or lend reserves, allowing banks
temporarily short of their required reserves to borrow reserves from banks
that have excess reserves.
- Federal funds rate
- The interest rate charged to borrow funds in the federal funds market.
- Federally related institutions
- Arms of the federal government that arc exempt from SEC registration and
whose securities are backed by the full faith and credit of the U.S.
government (with the exception of the Tennessee Valley Authority).
- Fill
- The price at which an order is executed.
- Fill or kill order
- A trading order that is canceled unless executed within a designated time
period. Related: Open order
- Filter
- The percentage by which the price of a security must change in order to
trigger its purchase or sale.
- Financial analysts
- Also called securities analysts and investment analysts, professionals who
analyze financial statements, interview corporate executives, and attend
trade shows, in order to write reports recommending either purchasing,
selling, or holding various stocks.
- Financial leverage ratios
- Related: Capitalization ratios
- Financial market
- An organized institutional structure or mechanism for creating and
exchanging financial assets.
- Financial risk
- The risk that the cash flow of an issuer will not be adequate to meet its
financial obligations.
- First-in-first-out (FIFO)
- A method of valuing the cost of goods sold that uses the cost of the
oldest item in inventory first.
- First notice day
- The first day, varying by contracts and exchanges, on which notices of
intent to deliver actual financial instruments or physical commodities
against futures are authorized.
- Fixed-charge coverage ratio
- A measure of a firm's ability to meet its fixed-charge obligations: the
ratio of (net earnings before taxes plus interest charges paid plus long-
term lease payments) to (interest charges paid plus long-term lease
payments).
- Fixed-income equivalent
- Also called a busted convertible, a convertible security that is trading
like a straight security because the optioned common stock is trading low.
- Fixed-income instruments
- Assets that pay a fixed-dollar amount, such as bonds and preferred stock.
- Fixed-income market
- The market for trading bonds and preferred stock.
- Fixed-rate payer
- In an interest rate swap the counter party who pays a fixed rate, usually
in exchange for a floating-rate payment.
- Flattening of the yield curve
- A change in the yield curve where the spread between the yield on a
long-term and short-term Treasury has decreased. Compare steepening of the
yield curve and butterfly shift.
- Floating-rate contract
- A guaranteed investment contract where the crediting rate is tied to some
variable ("floating") interest rate benchmark, such as a
specific-maturity Treasury yield.
- Floating-rate payer
- In an interest rate swap, the counterparty who pays a rate based on a
reference rate, usually in exchange for a fixed-rate payment
- Floor broker
- A member who is paid a fee for executing orders for clearing members or
their customers. A floor broker executing customer orders must be licensed
by the CFTC.
- CFTC
- Floor trader
- A member who generally trades only for his own account, for an account
controlled by him or who has such a trade made for him. Also referred to as
a "local".
- Flow-through method
- The practice of reporting to shareholders using straight-line depreciation
and accelerated depreciation for tax purposes and "flowing
through" the lower income taxes actually paid to the financial
statement prepared for shareholders.
- Foreign market
- Part of a nation's internal market, representing the mechanisms for
issuing and trading securities of entities domiciled outside that nation.
Compare external market and domestic market.
- Forward contract
- A cash market transaction in which delivery of the commodity is deferred
until after the contract has been made. It is not standardized and is not
traded on organized exchanges.
- Forward rate
- A projection of future interest rates calculated from either the spot
rates or the yield curve.
- Full faith-and-credit obligations
- The security pledges for larger municipal bond issuers, such as states and
large cities which have diverse funding sources.
- Full price
- Also called dirty price, the price of a bond including accrued interest.
- Fully modified pass-throughs
- Agency pass-throughs that guarantee the timely payment of both interest
and principal. Related: Modified pass-throughs
- Fund family
- Set of funds with different investment objectives offered by one
management company. In many cases, investors may move their assets from one
fund to another within the family at little or no cost.
- Fundamental beta
- The product of a statistical model to predict the fundamental risk of a
security using not only price data but other market-related and financial
data.
- Fundamental descriptors
- In the model for calculating fundamental beta, ratios in risk indexes
other than market variability, which rely on financial data other than price
data.
- Funding ratio
- The ratio of a pension plan's assets to its liabilities.
- Funding risk.
- Related: Interest rate risk
- Futures
- A term used to designate all contracts covering the sale of financial
instruments or physical commodities for future delivery on a commodity
exchange.
- Futures commission merchant
- A firm or person engaged in soliciting or accepting and handling orders
for the purchase or sale of futures contracts, subject to the rules of a
futures exchange and, who, in connection with such solicitation or
acceptance of orders, accepts any money or securities to margin any
resulting trades or contracts. The FCM must be licensed by the CFTC. Related:
Commission house, Omnibus account
- Futures contract
- A standardized, transferable legal agreement to make or take delivery of a
specified amount of a certain commodity of a certain grade or type at a
specific point in the future. The price is determined at the time the
agreement is made. Futures contracts must be traded on organized futures
exchanges.
- Futures contract multiple
- A constant, set by an exchange, which when multiplied by the futures price
gives the dollar value of a stock index futures contract.
- Futures option
- An option on a futures contract. Related: Options on physicals.
- Futures price
- The price at which the parties to a futures contract agree to transact on
the settlement date.
Options Glossary
Home