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F

Investment and Trading Glossary

A B C D E F G H I J K L M N O P  Q  R S T U V W X Y Z

 

F

FACE VALUE

See Par value.

FAIL TO DELIVER

A situation where the broker-dealer on the sell side of a transaction or contract does not deliver the specified securities to the broker- dealer on the buy side.

FAIL TO RECEIVE

A situation where the broker- dealer on the buy side of a transaction of contract does not receive the specified securities from the broker- dealer on the sell side.

FANNIE MAE

See Federal National Mortgage Association.

FDIC

See Federal Deposit Insurance Corporation.

FED

See Federal Reserve System.

FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC)

The government agency that provides deposit insurance for member banks and prevents bank and thrift failures.
FIDUCIARY A person legally appointed and authorized to hold assets in trust for another person and manage those assets in trust for the benefit of that person.

FILL OR KILL ORDER (FOK)

An order that instructs the floor broker to fill the entire order immediately; if the entire order cannot be executed immediately, it is canceled.

FINAL PROSPECTUS

The legal document that states the price of a new issue security, the delivery date, the underwriting spread and other material information. It must be given to every investor who purchases a new issue of registered securities.

FIRM QUOTE

The actual price at which a trading unit of a security (such as 100 shares of stock or five bonds) may be bought or sold. All quotes are firm quotes unless otherwise indicated.

See also bona fide quote; nominal quote; workout quote.

FIRST IN, FIRST OUT (FIFO)

An accounting method used to assess a company´s inventory, in which it is assumed that the first goods acquired are the first to be sold.

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.

See also monetary policy.

FLOOR TRADER

An exchange member who executes transactions from the floor of the exchange only for his own account

Syn. local

FOK

See fill or kill order.

FOREIGN ASSOCIATE

A non-U.S. citizen employed by an NASD member firm. Foreign associates are not subject to registration and licensing whit the NASD. However, they must not engage in the securities business in

any country or territory under the jurisdiction of the United States, nor do business whit any U.S. citizen, national or resident alien.

FRAUD

The deliberate concealment, misrepresentation or omission of material information or the truth, so as to deceive or manipulate another party for unlawful or unfair gain.

FRONT-END FEE

The expenses paid for services rendered during a direct participation program´s organization or acquisition phase, including frontend organization and offering expenses, acquisition fees and expenses, and any other similar fees designated by the sponsor.

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; Class A share; level 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.

See also contractual plan; spread load.

FROZEN ACCOUNT

An account requiring cash in advance before a buy order is executed and securities in hand before a sell order is executed: the account holder has violated Reg. T.

FULL POWER OF ATTORNEY

A written authorization for someone other than the beneficial owner of an account to make deposits and withdrawals and execute trades in the account.

See also limited power of attorney.

FULL TRADING AUTHORIZATION

An authorization, usually provided by a full power of attorney, for someone other than the customer to have full trading privileges in an account.

See also limited trading authorization.

FULLY DISCLOSED BROKER

See introducing broker.

FUNDAMENTAL ANALYSIS

A method of evaluating securities by attempting to measure the intrinsic value of a particular stock. Fundamental analysts study the overall economy, industry conditions and the financial condition and management of particular companies.

See also technical analysis.

FUND MANAGER

See portfolio manager.