Fixed-Rate Loan The rate fixed for the entire term of the loan. This rate does not change until maturity. … [Read more...]
Fixed-Rate Payer
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Fixed-Rate Payer Term used with interest rate swaps. Refers to the counterparty paying a fixed rate. Usually a floating-rate payment is taken in exchange. … [Read more...]
Flat Benefit Formula
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Flat Benefit Formula Technique that determines a participant's gains in a defined benefit plan. Calculated by multiplying the flat benefit per month by the total number of months of service. … [Read more...]
Flat Price Risk
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Flat Price Risk Entering a short or long position that is not hedged by an offsetting position. … [Read more...]
Flat Trades
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Flat Trades - Any security trading without accrued interest or where its price includes accrued interest - Default trading pattern for bonds. The price quoted encompasses accrued, unpaid interest along with principal. … [Read more...]
Flight to Quality
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Flight to Quality Investor mentality that prompts a movement towards low risk government bonds when there is high degree of uncertainty in the economy. … [Read more...]
Flip-Flop Note
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Flip-Flop Note Switch option on a note that lets investors move between two different debt types. … [Read more...]
Float
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Float Magnitude of shares that can be actively traded in the market. Shares owned by employees and major stakeholders are excluded if they have formally agreed to avoid selling unless another person is made an offer of the stock. … [Read more...]
Flattening of the Yield Curve
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Flattening of the Yield Curve Fluctuation in yield curve wherein the spread/ difference between the long term yield and short-term yield on a Treasury has reduced. Can be compared with butterfly shift and yield curve steepening. … [Read more...]
Flat Price
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Flat Price Also termed clean price. Newspaper quoted price of a bond that excludes accrued interest. The purchaser pays the full price, in effect. … [Read more...]
Flat Tax
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Flat Tax A system wherein all are taxed at the same rate, irrespective of the income each taxpayer earns. … [Read more...]
Floating Exchange Rate
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Floating Exchange Rate The decision of the government to let domestic currency value to float free. The central bank does not intervene to influence currency rates. This currency is not compared with respect to others. Its value is allowed to change and trading in the forex markets … [Read more...]
Floating Lien
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Floating Lien A lien that applies against the assets or particular asset class of a company. … [Read more...]
Floating Stock
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Floating Stock Shares freely available in the secondary market to investors for buying. A company’s stock price is less volatile when there is more floating stock. … [Read more...]
Floating Supply
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Floating Supply Quantity of securities expected to be readily available for purchase from investors and dealers who wish to sell them. … [Read more...]
Floating-Rate Contract
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Floating-Rate Contract Contract for investment that is guaranteed and has a credit rating that is linked to a floating rate of interest benchmark. A Treasury yield of a specific maturity may be used as benchmark. … [Read more...]
Floating-Rate Note (FRN)
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Floating-Rate Note (FRN) A note that carries variable interest payment that is linked to short-term rates of interest. … [Read more...]
Floating-Rate Payer
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Floating-Rate Payer Term used with interest rate swaps. Refers to the counterparty paying the rate based on the reference rate. Normally a fixed-rate payment is made in exchange. … [Read more...]
Floating-Rate Preferred
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Floating-Rate Preferred Dividend paying preferred stock wherein the dividend varies in line with interest rates for short term investments. … [Read more...]
