Super Finance Glossary

Finance

Over 10,000 financial glossary terms...

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Browsing by the letter "F"

Displaying next 40 results of 554
Fair Rate Of Return
Definition: The rate of return that state governments allow a public utility to earn on its investments and expenditures. Utilities then use these profits to pay investors and provide service upgrades to their customers.
Fair Value
Definition: In the context of futures, the equilibrium price for futures contracts. Also called the theoretical futures price, which equals the spot price continuously compounded at the cost of carry rate for some time interval. More generally, fair value for any asset simply refers to the perception that it is neither underpriced (too cheap) nor overpriced (too expensive).
Fair Value Or Theoretical Value
Definition: An estimate of an options worth produced by a mathematical pricing model, such as the Black-Scholes Equation or a Binomial Option Tree based on certain assumptions about prevailing interest rates and option volatility. See also Greeks.
Fair-and-equitable Test
Definition: A set of requirements for a plan of reorganization to be approved by the bankruptcy court.
Fairness Opinion
Definition: An investment banker's professional opinion as to the price an acquiring firm's is offering in a takeover or merger.
Fall Down
Definition: In the context of general equities, may not be able to produce as indicated in one's advertised market, due to less help (than anticipated) from other parties or due to changing market conditions.
Fall Out Of Bed
Definition: A sudden drop in a stock's price resulting from failed or poor business deals gone bad or falling through.
Fallen Angels
Definition: Bonds that at the time of issue were considered investment grade but that have dropped below that rating over time.
Fallout Risk
Definition: A type of mortgage pipeline risk that is generally created when the terms of the loan to be originated are set at the same time the sale terms are established. The risk is that either of the two parties, borrower or investor, fails to close and the loan "falls out" of the pipeline.
Fama, Eugene F.
Definition: Finance professor at the University of Chicago. Developer of the Efficient Markets Hypothesis.
Family Of Funds
Definition: Different mutual funds offered by one investment company.
FAN (Five Against Note) Spread
Definition: A futures spread trade involving the buying (selling) of a five-year Treasury note futures contract and the selling (buying) of a ten-year Treasury note futures contract.
Fannie Mae
Definition: A corporation (government-sponsored enterprise) created by Congress to support the secondary mortgage market; it purchases and sells residential mortgages insured by the Federal Home Administration (FHA) or guaranteed by the Veteran's Administration (VA). Formerly the Federal National Mortgage Association. See Freddie Mac.
Far Month
Definition: Used in the context of option or futures to refer to the trading month of the contract that is farthest away. Antithesis of nearest month.
Farther Out; Farther In
Definition: Used in the context of options to refer to the relative length of option contract maturities.
FAS
Definition: Abbreviation for the Incoterm Free Alongside Ship.
FASB No. 52
Definition: The US accounting standard that replaced FASB No. 8. US companies are required to translate foreign accounts in terms of the current rate and report the changes from currency fluctuations in a cumulative translation adjustment account in the equity section of the balance sheet.
FASB No. 8
Definition: U.S. accounting standard that requires US firms to translate their foreign affiliates' accounts by the temporal method; that is reporting gains and losses from currency fluctuations in current income. It was in effect between 1975 and 1981 and became the most controversial accounting standard in the US It was replaced by FASB No. 52 in 1981.
Fast Market
Definition: Excessively rapid trading in a specific security that causes a delay in the electronic updating of its last sale and market conditions, particularly in options.
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