Investment Terms: F
Description
This article is from the Investment Terms.
Investment Terms: F
- Face Value:
The amount of money printed on the face of the certificate of a security; the original dollar amount of indebtedness incurred. - Federal Funds:
Member bank deposits at the Federal Reserve; these funds are loaned by member banks to other member banks. - Federal Funds Rate:
The rate of interest charged for the use of federal funds. - Federal Housing Administration (FHA):
A division of the U.S. Department of Housing and Urban Development that insures residential mortgage loans and sets construction standards. - Federal Reserve System:
A central banking system in the United States, created by the Federal Reserve Act in 1913, designed to assist the nation in attaining its economic and financial goals. The structure of the Federal Reserve System includes a Board of Governors, the Federal Open Market Committee, and 12 Federal Reserve Banks. - Feed Ratio:
A ratio used to express the relationship of feeding costs to the dollar value of livestock. See Hog/Corn Ratio and Steer/Corn Ratio. - Fill-or-Kill:
A customer order that is a price limit order that must be filled immediately or canceled. - Financial Analysis Auditing Compliance Tracking System
(FACTS):
The National Futures Association's computerized system of maintaining financial records of its member firms and monitoring their financial conditions. - Financial Instrument:
There are two basic types: (1) a debt instrument, which is a loan with an agreement to pay back funds with interest; (2) an equity security, which is a share or stock in a company. - First Notice Day:
According to Chicago Board of Trade rules, the first day on which a notice of intent to deliver a commodity in fulfillment of a given month's futures contract can be made by the clearinghouse to a buyer. The clearinghouse also informs the sellers who they have been matched up with. - Floor Broker (FB):
An individual who executes orders for the purchase or sale of any commodity futures or options contract on any contract market for any other person. - Floor Trader (FT):
An individual who executes trades for the purchase or sale of any commodity futures or options contract on any contract market for such individual's own account. - Foreign Exchange Market:
See Forex Market. - Forex Market:
An over-the-counter market where buyers and sellers conduct foreign exchange business by telephone and other means of communication. Also referred to as foreign exchange market. - Forward (Cash) Contract:
A cash contract in which a seller agrees to deliver a specific cash commodity to a buyer sometime in the future. Forward contracts, in contrast to futures contracts, are privately negotiated and are not standardized. - Full Carrying Charge Market:
A futures market where the price difference between delivery months reflects the total costs of interest, insurance, and storage. - Full Membership (CBOT):
A Chicago Board of Trade membership that allows an individual to trade all futures and options contracts listed by the exchange. - Fundamental Analysis:
A method of anticipating future price movement using supply and demand information. - Futures Commission Merchant (FCM):
An individual or organization that solicits or accepts orders to buy or sell futures contracts or options on futures and accepts money or other assets from customers to support such orders. Also referred to as commission house or wire house. - Futures Contract:
A legally binding agreement, made on the trading floor of a futures exchange, to buy or sell a commodity or financial instrument sometime in the future. Futures contracts are standardized according to the quality, quantity, and delivery time and location for each commodity. The only variable is price, which is discovered on an exchange trading floor. - Futures Exchange:
A central marketplace with established rules and regulations where buyers and sellers meet to trade futures and options on futures contracts.
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