Forward Interest Rate Rate of interest fixed in current time for a loan that will be made in future. … [Read more...]
Forward Looking Multiple
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Forward Looking Multiple Abridged expression for a Price/Earnings ratio. Based on expected or forward earnings instead of earnings seen historically. … [Read more...]
Forward Points
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Forward Points Basis points used for determination of forward rate. By adding or removing these basis points from spot rate, the forward rate is calculated. … [Read more...]
Forward Premium
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Forward Premium Trades in any currency where spot price is lower than forward price. … [Read more...]
Forward Rate
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Forward Rate Future interest rates projected based on the yield curve or spot rates. … [Read more...]
Forward Rate Agreement (FRA)
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Forward Rate Agreement (FRA) A formal agreement to lend or borrow funds at an interest rate determined at present. The actual borrowing or lending is carried out on a predetermined future date. … [Read more...]
Forward Sale
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Forward Sale A price hedge carried out to reduce risk. It encompasses an agreement between investor and lender to sell specific loan types at a specified future date and price. … [Read more...]
Forward Trade
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Forward Trade Transaction wherein the settlement shall take place at a given future date. The price is to be agreed upon at the time of the actual transaction. … [Read more...]
Fourth Market
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Fourth Market Trading of exchange-listed securities directly between various investors where broker’s services are not used. … [Read more...]
Fractional Share
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Fractional Share Equity share that is less than a full share. Usually come about when stock splits are announced or from dividend reinvestment plans. Generally, such shares are not available directly in the market. … [Read more...]
Freddie Mac (Federal Home Loan Mortgage Corporation)
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Freddie Mac (Federal Home Loan Mortgage Corporation)m Corporation created by Congress charter that buys residential mortgages from S&Ls, mortgage bankers and banks in the secondary market. These are then sold in the capital markets after securitization. … [Read more...]
Free Cash Flows
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Free Cash Flows Funds that are not needed for operations or reinvestment. Earnings before interest (present in income statement along with operating income) minus capital expenditures minus the working capital change. … [Read more...]
Free Float
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Free Float Also termed clean float. Exchange rate system wherein there is no government intervention. … [Read more...]
Free on Board
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Free on Board Concept that price of goods coming in from other economies includes cost of transport and handling performed up to the customs frontier in the country where they originated. … [Read more...]
Free Reserves
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Free Reserves A Federal Reserve term that denotes excess reserves less borrowings by member banks. … [Read more...]
Free Rider
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Free Rider An investor who prefers to follow the lead of another with respect to assessing the most profitable course of action to avoid the expense incurred in such analysis. … [Read more...]
Freeze Out
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Freeze Out Also termed ‘squeeze out’. Action originated by majority shareholders of a firm that forces minority holders to sell their stake. Different kinds of maneuvers fall within this category. For example, cancellation of dividends. … [Read more...]
Frequency Distribution
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Frequency Distribution Assimilation and regulation of data to demonstrate the frequency with which certain values or value range appear. … [Read more...]
Friction Costs
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Friction Costs Implied and/ or direct costs that are associated with transactions. Include time, tax impact, effort, costs of information gathering and completing the processes. … [Read more...]
Frictions
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Frictions Processes involved in completing transactions such as information gathering, buying stocks etc. Includes delays and expenditure in terms of time, money, tax payable and effort. … [Read more...]
