Letter F Vocabulary Flashcards
The nominal or dollar value of a security as stated by the issuer.
Face Value
The estimated value of an asset or liability in a transaction between well-informed, willing parties.
Fair Value
A U.S. government agency that insures deposits in banks and thrift institutions.
Federal Deposit Insurance Corporation (FDIC)
The central banking system of the United States, responsible for implementing monetary policy.
Federal Reserve
The governing body of the Federal Reserve System, responsible for overseeing the nation’s open market operations and making key decisions about interest rates.
Federal Reserve Board (The Fed)
The central bank of the United States, established to regulate the money supply and stabilize the economy.
Federal Reserve System
A person or organization that owes a duty of trust and acts on behalf of another, prioritizing their clients’ interests above their own.
Fiduciary
The legal obligation of one party to act in the best interest of another, especially in financial matters.
Fiduciary Duty
A type of stock order that must be executed immediately in its entirety or not at all.
Fill-or-Kill (FOK) Order
A non-governmental organization that regulates brokerage firms and exchange markets in the U.S.
Financial Industry Regulatory Authority (FINRA)
A professional who helps individuals and organizations develop strategies for managing their financial affairs.
Financial Planner
Formal records of the financial activities and position of a business, organization, or person.
Financial Statement
Government policy concerning taxation and spending to influence economic conditions.
Fiscal Policy
A 12-month period used by governments and businesses for accounting and budgeting purposes, which may not align with the calendar year.
Fiscal Year
A financial product that provides guaranteed periodic payments to the annuitant, usually for life.
Fixed Annuity
An investment type that pays regular interest or dividends and returns the principal at maturity.
Fixed Income
A bond that pays a fixed interest rate over its entire life.
Fixed Rate Bond
A security that pays a fixed amount of interest or dividend over its lifetime.
Fixed-Income Security
An issuance of shares by a publicly-traded company subsequent to its initial public offering (IPO).
Follow-on Public Offer (FPO)
The global marketplace for trading national currencies against one another.
Foreign Exchange (Forex)
An agreement to buy or sell an asset at a specific price on a specific future date.
Forward Contract
Portions of a share of stock that are less than a full share.
Fractional Shares
The cash a company generates after accounting for capital expenditures needed to maintain or expand its asset base.
Free Cash Flow
The prohibited practice of buying stocks without adequate funds and selling them before making payment.
Free Riding
A commission or sales charge paid by the investor at the initial purchase of an investment.
Front-End Load
The requirement to provide all relevant information pertaining to a business transaction.
Full Disclosure
A broker that provides a wide range of services including research, investment advice, and portfolio management.
Full-Service Broker
The evaluation of a company’s financial health and performance using financial statements, industry trends, and other economic indicators.
Fundamental Analysis
Items that are interchangeable because they are of the same type and quality.
Fungible
A standardized contract to buy or sell a specified commodity of standardized quality at a certain date in the future.
Futures Contract
A central marketplace where futures contracts are traded.
Futures Exchange
