Finance Dictionary ( daily finance terms and concepts will be added and discussed)

Federal Reserve Board

Abbreviated FRB. A seven-member group that directs the operations of the Federal Reserve System. Board members are appointed by the president, subject to approval by Congress.
 
Fiduciary

A person legally appointed and authorized to hold assets in trust for another person and manage those assets for the benefit of that person.
 
Financial Planner

An investment professional generalist who helps individuals delineate financial plans with specific objectives and helps coordinate various financial concerns.
 
Fiscal Policy

The federal tax and spending policies set by Congress or the president. These policies affect tax rates, interest rates and government spending in an effort to control the economy.
 
Fiscal Year


Abbreviated FY. A corporation’s accounting year that may differ from the calendar year. Fiscal year is defined in various ways, according to the source of the data.
Value Line: If FY ends prior to May 15/09, the label will be FY 2008. May 15/09 or later will be FY 2009.
Standard & Poor’s: Regardless of date, FY is the calendar year in which FY ends.
 
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 tangible, long term asset such as land or building, held for use rather than sale.
Fixed Asset
A tangible, long term asset such as land or building, held for use rather than sale.
 
Float

The total number of outstanding shares available on the market.


Floor Trader

An exchange member who executes transactions from the floor of the exchange only for his own account.
 
Foreign Currency Effects

Returns on foreign investments will increase (in terms of dollars) to the extent a foreign currency appreciates relative to the dollar. The opposite would be true for declining foreign currencies.
 
Form 10-K

The annual report required by the Securities and Exchange Commission (SEC) in the U.S. for every company with 500 or more shareholders or with $1 million or more in gross assets. This form becomes public information when filed with the SEC. It is available on the Internet or from the company.
 
Form 10-Q


The quarterly report of a company with listed securities, required to be filed with the Securities and Exchange Commission (SEC). It is less comprehensive than the 10-K annual report and does not require that figures be audited. It may cover the specific quarter or it may be cumulative. It should include comparative figures for the same period of the previous year.
 
Fundamental Analysis

A method of security analysis based on fundamental facts found in a company’s balance sheet and income statement e.g. sales, earnings, dividends. These past records are examined to attempt to predict the company’s future growth of sales and earnings as well as stock price growth,
 
Free Cash Flow per Share

Net income plus all non-cash expenses, minus dividends and capital expenditures, on a per share basis. A measure of a firm’s financial flexibility.
 
Front-End Load

(1) A mutual fund commission or sales fee that is charged at the time shares are purchased. The load is added to the net asset value of the shares when calculating the public offering price. See also back-end load. (2) A system of sales charge for contractual plans that permits up to 50% of the first year’s payments to be deducted as a sales charge. Investors have a right to withdraw from the plan, but there are some restrictions if this occurs.
 
Funds From Operations

Abbreviated FFO. 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 can be represented as Funds From Operations Per Share (FFO/S). FFO/S should be used in lieu of EPS when evaluating REITs and other similar investment trusts.
 
Futures Contract

A standardized, 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 Market

A continuous auction market in which participants buy and sell commodities contracts for delivery on a specified future date. Trading is traditionally carried on through open outcry and hand signals in a trading pit or ring.
 
General Obligation Bond


Abbreviated GO. A municipal bond backed by the full faith, credit, and “taxing power” of the issuing unit rather than the revenue from a given project.
 
You must log in or register to reply here.
Back
Top