| Term | Definition |
|---|---|
| 1913 Federal Reserve Act | The act that created the Federal Reserve System |
| FAANG Stocks | Stocks of Facebook (Meta), Apple, Amazon, Netflix, and Google (Alphabet) |
| Face Value | The nominal value of a security |
| Facility | A resource or capability |
| Factor | A characteristic that is used to classify securities |
| Factor Investing | An investment strategy that focuses on specific factors |
| Factor Market | A market where factors of production are traded |
| Factors of Production | Resources used to produce goods and services |
| FactSet | A financial data and analytics company |
| Facultative Reinsurance | Reinsurance for individual risks |
| Fail | A failure to deliver securities on time |
| Fair Credit Billing Act (FCBA) | A U.S. law that protects consumers from billing errors |
| Fair Credit Reporting Act (FCRA) | A U.S. law that regulates credit reporting agencies |
| Fair Debt Collection Practices Act (FDCPA) | A U.S. law that protects consumers from abusive debt collection practices |
| Fair Labor Standards Act | A U.S. law that establishes minimum wage and overtime pay requirements |
| Fair Market Value (FMV) | The price that a willing buyer would pay to a willing seller |
| Fair Value | A valuation concept |
| Fallen Angel | A bond that has been downgraded to junk status |
| Falling Knife | A stock that is declining rapidly in price |
| Fama and French Three Factor Model | A model that expands on the CAPM by adding size and value factors |
| Family and Medical Leave Act (FMLA) | A U.S. law that provides unpaid, job-protected leave for certain family and medical reasons |
| Family Limited Partnership (FLP) | A type of limited partnership used for estate planning |
| Family Offices | Private wealth management firms that serve wealthy families |
| FANG Stocks | Stocks of Facebook, Amazon, Netflix, and Google |
| Farmers Home Administration (FmHA) | A U.S. government agency that provides loans to farmers and rural residents |
| Fast Fashion | Clothing that is produced quickly and cheaply |
| Fast-Moving Consumer Goods (FMCG) | Goods that are sold quickly and at a relatively low cost |
| FDIC Insured Account | A bank account that is insured by the Federal Deposit Insurance Corporation |
| Fear and Greed Index | A market sentiment indicator |
| Fed Balance Sheet | The assets and liabilities of the Federal Reserve |
| Federal Agencies | Government agencies |
| Federal Communications Commission (FCC) | A U.S. government agency that regulates interstate and international communications |
| Federal Deposit Insurance Corporation (FDIC) | A U.S. government agency that insures bank deposits |
| Federal Direct Loan Program | A student loan program offered by the U.S. government |
| Federal Discount Rate | The interest rate at which commercial banks can borrow money directly from the Fed |
| Federal Funds | Overnight loans between commercial banks |
| Federal Funds Rate | The interest rate that banks charge each other for overnight loans |
| Federal Home Loan Bank System (FHLB) | A system of banks that provide liquidity to savings and loan associations |
| Federal Housing Administration (FHA) | A U.S. government agency that insures mortgages |
| Federal Housing Administration Loan | A mortgage insured by the FHA |
| Federal Income | Income subject to federal income tax |
| Federal Insurance Contributions Act (FICA) | A U.S. law that imposes payroll taxes for Social Security and Medicare |
| Federal Open Market Committee (FOMC) | A committee that sets monetary policy in the U.S. |
| Federal Open Market Committee Meeting (FOMC Meeting) | A meeting of the FOMC |
| Federal Poverty Level (FPL) | A measure of income used to determine eligibility for certain government programs |
| Federal Reserve Bank | A regional bank of the Federal Reserve System |
| Federal Reserve Board (FRB) | The governing body of the Federal Reserve System |
| Federal Reserve System (FRS) | The central banking system of the U.S. |
| Federal Trade Commission (FTC) | A U.S. government agency that protects consumers and promotes competition |
| Federal Unemployment Tax Act (FUTA) | A U.S. law that imposes a federal unemployment tax |
| Feasibility Study | An assessment of the viability of a project |
| Fee | A payment for services |
| Feed-In Tariff (FIT) | A policy that guarantees a price for renewable energy fed into the grid |
| Feeder Fund | A fund that invests in another fund |
| FHA 203(k) Loan | A mortgage that includes funds for home renovation |
| Fiat Money | Currency that is not backed by a physical commodity |
| Fibonacci Extensions | A technical analysis tool used to identify potential price targets |
| Fibonacci Numbers and Lines | A sequence of numbers and lines used in technical analysis |
| Fibonacci Retracement | A technical analysis tool used to identify potential support and resistance levels |
| FICO Score | A credit score used by lenders |
| Fidelity Bond | Insurance that protects an employer from losses due to employee dishonesty |
| Fiduciary | A person who manages assets for another party |
| Filing Status | The classification of a taxpayer for tax purposes |
| Fill Or Kill (FOK) | An order to buy or sell a security that must be executed immediately or canceled |
| Finance | The management of money |
| Financial Account | A record of a country’s international financial transactions |
| Financial Accounting | The process of recording and reporting financial information |
| Financial Accounting Standards Board (FASB) | A body that sets accounting standards in the U.S. |
| Financial Advisor | A professional who provides financial advice |
| Financial Analysis | The process of evaluating financial information |
| Financial Asset | An asset that represents a claim to future cash flows |
| Finance Charge | The total cost of borrowing money |
| Financial Crisis | A disruption in the financial system |
| Financial Distress | A situation where a company is unable to meet its financial obligations |
| Financial Economics | The study of how financial markets work |
| Financial Engineering | The use of financial instruments to create new products or strategies |
| Financial Exposure | The risk of loss due to changes in financial variables |
| Financial Guarantee | A guarantee of payment |
| Financial Health | The state of one’s finances |
| Financial Inclusion | Access to financial services for all |
| Financial Independence, Retire Early (FIRE) | A movement focused on achieving financial independence and retiring early |
| Financial Industry Regulatory Authority (FINRA) | A self-regulatory organization for the securities industry |
| Financial Information Exchange (FIX) | A protocol for electronic trading |
| Financial Institution (FI) | A company that provides financial services |
| Financial Instrument | A contract that represents a financial asset or liability |
| Financial Intermediary | An institution that connects savers and borrowers |
| Financial Literacy | The ability to understand and manage financial concepts |
| Financial Market | A market where financial instruments are traded |
| Financial Modeling | The process of creating a mathematical representation of a financial situation |
| Financial Performance | The results of a company’s operations |
| Financial Plan | A plan for managing one’s finances |
| Financial Planner | A professional who helps people create financial plans |
| Financial Risk | The risk of financial loss |
| Financial Risk Manager (FRM) | A professional who manages financial risk |
| Financial Sector | Companies that provide financial services |
| Financial Statement Analysis | The process of evaluating financial statements |
| Financial Statements | Reports that summarize a company’s financial performance and position |
| Financial Structure | The mix of debt and equity used to finance a company’s assets |
| Financial System | The institutions and markets that facilitate the flow of funds between savers and borrowers |
| Financial Technology (Fintech) | Technology used in the financial services industry |
| Financial Times Stock Exchange Group (FTSE) | A global index provider |
| Financing | The process of raising capital |
| Finder’s Fee | A fee paid for bringing parties together in a transaction |
| FINRA BrokerCheck | A tool for checking the background of brokers |
| Fire Insurance | Insurance that protects against losses from fire |
| Firm | A business organization |
| First In, First Out (FIFO) | An inventory valuation method |
| First Mortgage | A mortgage that has priority over other liens |
| First Mover | A company that is the first to enter a market |
| First Notice of Loss (FNOL) | A report filed by an insured after a loss |
| First World | Developed countries |
| Fiscal Deficit | A shortfall of government revenue compared to government spending |
| Fiscal Multiplier | The effect of government spending on GDP |
| Fiscal Policy | Government policies related to spending and taxation |
| Fiscal Year (FY) | A company’s accounting year |
| Fiscal Year-End | The end of a company’s fiscal year |
| Fisher Effect | The relationship between inflation and interest rates |
| Fisher Transform Indicator | A technical indicator |
| Fitch Ratings | A credit rating agency |
| Five Cs of Credit | A framework for evaluating creditworthiness |
| Five-Year Rule | A rule related to Roth IRA withdrawals |
| Fixed Annuity | An annuity that pays a fixed rate of return |
| Fixed Asset | A long-term asset |
| Term | Definition |
|---|---|
| Fixed Asset Turnover Ratio | A measure of how efficiently a company uses its fixed assets to generate revenue |
| Fixed Capital | Long-term assets |
| Fixed-Charge Coverage Ratio | A measure of a company’s ability to cover its fixed charges |
| Fixed Cost | A cost that does not vary with output |
| Fixed Exchange Rate | An exchange rate that is fixed by the government |
| Fixed Income | Debt securities |
| Fixed Income Clearing Corporation (FICC) | A clearinghouse for fixed-income securities |
| Fixed-Income Security | A debt security |
| Fixed Interest Rate | An interest rate that does not change |
| Fixed-Rate Mortgage | A mortgage with a fixed interest rate |
| Fixed-Rate Payment | A loan payment that does not change |
| Flat | Unchanged |
| Flat Tax | A tax system with a single tax rate |
| Flat Yield Curve | A yield curve where short-term and long-term interest rates are similar |
| Flexible Manufacturing Systems (FMS) | Manufacturing systems that can be easily adapted to produce different products |
| Flexible Spending Account (FSA) | A tax-advantaged account used to pay for healthcare expenses |
| Flip | A short-term real estate investment strategy |
| Float | The time between when a check is written and when it clears |
| Floating Charge | A security interest over a company’s assets that can change over time |
| Floating Exchange Rate | An exchange rate that is determined by market forces |
| Floating Interest Rate | An interest rate that changes over time |
| Floating Rate Fund | A mutual fund that invests in floating rate securities |
| Floating Rate Note (FRN) | A debt security with a floating interest rate |
| Floating Stock | Shares that are available for trading |
| Floor Area Ratio (FAR) | A measure of the building area allowed on a plot of land |
| Floor Trader (FT) | A trader who trades on the floor of an exchange |
| Flotation | The process of issuing new securities |
| Flotation Cost | The cost of issuing new securities |
| Flow of Funds (FOF) | A report on the flow of funds in the U.S. economy |
| Flow-Through Entity | A business entity that does not pay corporate income tax |
| Folio Number | A unique identifier for a client’s account |
| Follow-On Offering | An additional offering of securities by a company that is already public |
| Follow On Public Offer (FPO) | Same as Follow-On Offering (Indian terminology) |
| Food And Drug Administration (FDA) | A U.S. government agency that regulates food and drugs |
| Footnotes to the Financial Statements | Additional information that accompanies the financial statements |
| For Sale By Owner (FSBO) | A property that is being sold by the owner without a real estate agent |
| Forbearance | A temporary postponement of loan payments |
| Force Majeure | A clause in a contract that excuses performance due to unforeseen events |
| Forecasting | The process of predicting future events |
| Foreclosure | The process of seizing a property due to non-payment of a loan |
| Foregone Earnings | The income that someone gives up by choosing one option over another |
| Foreign Account Tax Compliance Act (FATCA) | A U.S. law aimed at preventing tax evasion by U.S. citizens holding assets in foreign accounts |
| Foreign Aid | Financial assistance provided to developing countries |
| Foreign Corrupt Practices Act | A U.S. law that prohibits bribery of foreign officials |
| Foreign Currency Convertible Bond (FCCB) | A bond that can be converted into a foreign currency |
| Foreign Currency Swap | An agreement to exchange currencies at a future date |
| Foreign Direct Investment (FDI) | Investment in a foreign company or asset |
| Foreign Earned Income Exclusion | A tax exclusion for income earned in a foreign country |
| Foreign Exchange | The process of exchanging currencies |
| Foreign Exchange Reserves | A country’s holdings of foreign currencies |
| Foreign Exchange Risk | The risk of loss due to changes in exchange rates |
| Foreign Institutional Investor (FII) | An investor from a foreign country that invests in a country’s financial markets |
| Foreign Investment | Investment in a foreign country |
| Foreign Portfolio Investment (FPI) | Investment in foreign securities |
| Foreign Tax Credit | A tax credit for taxes paid to a foreign country |
| Forensic Accounting | The use of accounting skills to investigate fraud |
| Forensic Audit | An audit conducted to investigate fraud |
| Forex (FX) | The foreign exchange market |
| Forfaiting | A type of trade finance |
| Forfeited Share | A share that is forfeited by a shareholder |
| Form 3 | A form filed by insiders of a company to report their ownership |
| Form 4 | A form filed by insiders of a company to report changes in their ownership |
| Form 144 | A form filed by insiders of a company to report the sale of restricted stock |
| Form 1040X | An amended U.S. individual income tax return |
| Form 1045 | An application for tentative refund from carryback of net operating loss |
| Form 1065 | A U.S. partnership income tax return |
| Form 1095-A | A form used to report health insurance coverage through the marketplace |
| Form 1095-B | A form used to report health insurance coverage from an employer |
| Form 1095-C | A form used to report health insurance coverage offered by an employer |
| Form 1098 | A form used to report mortgage interest paid |
| Form 1099-B | A form used to report proceeds from broker and barter exchange transactions |
| Form 1099-DIV | A form used to report dividends and distributions |
| Form 1099-INT | A form used to report interest income |
| Form 1099-MISC | A form used to report miscellaneous income |
| Form 1099-R | A form used to report distributions from pensions, annuities, IRAs, etc. |
| Form 1099-Q | A form used to report payments from qualified education programs |
| Form 1120S | A U.S. S corporation income tax return |
| Form 1310 | A statement of person claiming refund due a deceased taxpayer |
| Form 13F (SEC) | A form filed by institutional investment managers |
| Form 2106 | A form used to deduct employee business expenses |
| Form 2106-EZ | A simplified form used to deduct unreimbursed employee business expenses |
| Form 2439 | A notice to shareholder of undistributed long-term capital gain |
| Form 2848 | A power of attorney and declaration of representative |
| Form 4506 | A request for copy of tax return |
| Form 4562 | A form used to claim depreciation |
| Form 4684 | A form used to report casualties and thefts |
| Form 4797 | A form used to report sales of business property |
| Form 4952 | A form used to calculate investment interest expense deduction |
| Form 5405 | A form used to claim the first-time homebuyer credit |
| Form 6251 | A form used to calculate alternative minimum tax |
| Form 6252 | A form used to report installment sale income |
| Form 6781 | A form used to report gains and losses from section 1256 contracts |
| Form 706 | A U.S. estate tax return |
| Form 8283 | A form used to report noncash charitable contributions |
| Form 8379 | An injured spouse claim and allocation |
| Form 8396 | A form used to claim the mortgage credit certificate |
| Form 843 | A claim for refund and request for abatement |
| Form 8606 | A form used to report nondeductible IRAs |
| Form 8949 | A form used to report sales and other dispositions of capital assets |
| Form ADV | A form filed by investment advisers with the SEC |
| Fortune 100 | A list of the 100 largest U.S. companies by total revenue |
| Fortune 500 | A list of the 500 largest U.S. companies by total revenue |
| Forward Contract | A customized contract to buy or sell an asset at a future date |
| Forward Dividend Yield | The expected annual dividend per share divided by the current stock price |
| Forward Exchange Contract | Same as Forward Contract |
| Forward Integration | A company’s expansion into downstream activities |
| Forward Market | The market for forward contracts |
| Forward Points | The difference between the forward price and the spot price |
| Forward Premium | The amount by which the forward price exceeds the spot price |
| Forward Price | The price of an asset for delivery at a future date |
| Forward Price-To-Earnings (Forward P/E) | A valuation metric that uses forward earnings |
| Forward Rate | The interest rate for a future period |
| Term | Definition |
|---|---|
| Forward Rate Agreement (FRA) | A contract to exchange interest payments at a future date |
| Four Asian Tigers | Hong Kong, Singapore, South Korea, and Taiwan |
| Four Percent Rule | A rule of thumb for retirement withdrawals |
| Four Ps | The four Ps of marketing: Product, Price, Place, and Promotion |
| Fourth World | Marginalized and impoverished populations |
| Fractal Indicator | A technical indicator that identifies trends |
| Fractional Reserve Banking | A system where banks hold a fraction of deposits in reserve |
| Fractional Share | A portion of a share of stock |
| Franchise | A business arrangement where a franchisee operates under a franchisor’s brand |
| Franchise Tax | A tax on a franchise |
| Franchisee | A person who operates a franchise |
| Franked Dividend | A dividend with a tax credit attached |
| Fraud | Intentional deception for financial gain |
| Freddie Mac | A government-sponsored enterprise that buys mortgages |
| Free Carrier (FCA) | An Incoterm that specifies that the seller is responsible for delivering goods to a named place |
| Free Cash Flow (FCF) | Cash flow available to investors after operating expenses and capital expenditures |
| Free Cash Flow to Equity (FCFE) | Cash flow available to equity holders |
| Free Cash Flow to the Firm (FCFF) | Cash flow available to all investors |
| Free Cash Flow Yield | Free cash flow per share divided by the stock price |
| Free Enterprise | An economic system based on private ownership and free markets |
| Free-Float Methodology | A method for calculating market capitalization |
| Free Look Period | A period during which an insurance policy can be canceled for a full refund |
| Free Market | A market where prices are determined by supply and demand |
| Free On Board (FOB) | An Incoterm that specifies that the seller is responsible for delivering goods to a port of shipment |
| Free Rider Problem | The problem of individuals benefiting from a good or service without paying for it |
| Free Trade | Trade without barriers |
| Free Trade Area | A group of countries that have eliminated trade barriers between themselves |
| Freemium | A business model that offers basic services for free and charges for premium services |
| Frequency Distribution | A table or graph that shows the number of times each value occurs |
| Freudian Motivation Theory | A psychological theory of motivation |
| Frictional Unemployment | Unemployment due to workers transitioning between jobs |
| Friedrich Engels | A German philosopher and economist |
| Friedrich Hayek | An Austrian economist |
| Fringe Benefits | Non-wage benefits provided to employees |
| Front-End Debt-to-Income Ratio (DTI) | A ratio of housing costs to income |
| Front-End Load | A sales charge paid when purchasing a mutual fund |
| Front Office | The client-facing part of a financial institution |
| Front-Running | Trading on inside information |
| Full Costing | An accounting method that allocates all costs to products |
| Full Disclosure | The requirement to provide complete and accurate information |
| Full Employment | A situation where everyone who wants a job can get one |
| Full Ratchet | A clause that protects investors in a down round |
| Fully Amortizing Payment | A loan payment that pays off the entire loan by the end of the term |
| Fully Diluted Shares | The total number of shares outstanding, including potential shares from convertible securities |
| Fully Vested | Having full ownership rights to benefits |
| Functional Currency | The currency of the primary economic environment in which an entity operates |
| Functional Obsolescence1 | A reduction in the value of an asset due to changes in technology or design |
| Fund | A pool of money invested in securities |
| Fund Flow | The movement of money into and out of a fund |
| Fund Manager | A professional who manages a fund |
| Fund of Funds (FOF) | A fund that invests in other funds |
| Fundamental Analysis | The process of evaluating securities based on financial information |
| Fundamentals | The financial information of a company |
| Funded Debt | Long-term debt |
| Funds From Operations (FFO) | A measure of a REIT’s cash flow |
| Funds Transfer Pricing (FTP) | A method for determining the internal cost of funds |
| Fungibility | The ability to exchange one unit of a good or asset for another unit |
| Furniture, Fixtures, and Equipment (FF&E) | Tangible assets used in a business |
| Future Value (FV) | The value of an investment at a future date |
| Future Value of an Annuity | The value of a series of payments at a future date |
| Futures | Standardized contracts to buy or sell an asset at a future date |
| Futures Commission Merchant (FCM) | A firm that handles futures trades for clients |
| Futures Contract | A standardized contract to buy or sell an asset at a future date |
| Futures Market | A market where futures contracts are traded |