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F - When appearing at the end of a company’s ticker symbol, the letter signifies that the company’s securities trade primarily on a foreign exchange.
Face Value - Maturity value of a bond as stated on the certificate; also known as "par value" or "maturity value."
Fail to Deliver - Term referring to a seller's failure to deliver a security to a buyer by the settlement date.
Fannie Mae - Nickname for the Federal National Mortgage Association (NYSE:FNM) and securities it issues. FNM is a publicly-traded corporation that purchases conventional mortgages and mortgages guaranteed by the Federal Housing Administration, Veterans Administration and Farmers Home Administration.
Federal Reserve Board - Seven-member group appointed by the President, subject to approval by Congress, to oversee operations of the Federal Reserve System.
Federal Reserve System - Central banking system of the United States. Popularly known as "the Fed," its chief responsibility is to regulate the flow of money and credit.
Fiduciary - Entity entrusted to control money or other assets; examples include banks, mutual funds, brokerages, and even parents acting as trustees or custodians of their children’s investments.
Fill - Act of executing or completing a customer's order to buy or sell securities.
Fill or Kill - Instruction to a broker to execute a market order immediately or cancel it.
Financial Statements - Written records reflecting a company’s financial condition. Statements often include the balance sheet, income statement, statement of cash flows and statement of shareholder equity; these may be issued audited or unaudited by independent accountants depending on a company’s level of financial reporting requirements under the SEC and the stock exchange which lists its shares.
First Call Date - Earliest date a security may be called or redeemed (bought back) by its issuer; usually refers to corporate and municipal bonds.
Firm Commitment - Guarantee from an underwriter of a securities offering to the issuer to sell all or a prescribed minimum of the offering even if the underwriter has to purchase some of the offering itself.
Fiscal Year - One-year period designated by a company as its annual accounting period. While most companies' fiscal years coincide with the calendar year, it is not unusual for a company to establish arbitrary dates within a calendar year to begin and end its fiscal year.
Five Percent Rule - NASD rule limiting brokers and market makers from marking up or charging in excess of 5% commission on most stock transactions. However, there are many exceptions to the rule.
Flat - (1) Bond or other fixed-income security traded without accounting for accrued interest; (2) describes a market where the price of a stock and/or its volume have not changed significantly over a period of time; (3) a term stockbrokers and market makers often use when they no longer hold a position in a particular security or account.
Float - Number of a company's shares that are outstanding and available for trading by the public; generally represents shares outstanding less shares restricted to insiders, affiliates, control persons, and individuals holding shares restricted under Rule 144.
Floating - Term often used by brokers to describe the distribution of a new or secondary issue through a public offering.
Floor Broker - Member of an exchange and employee of a member firm who executes orders on the exchange floor for clients; typically, the guys in the noisy, crazy "pits" you see when scenes of stock markets are displayed on TV or film. NASDAQ is an electronic stock market and thus, has no floor brokers.
Floor Trader - Member of an exchange who trades on the floor of that exchange for his or her own account.
Freeriding - Illegal act of rapid buying and selling of a security by a broker without putting up funds for the purchase; also describes illegal withholding of part of a new securities offering by an underwriter for the purpose of selling it later at a higher price.
Front-end Load - Sales charge that is immediately deducted from the purchase price of mutual fund shares. Once quite common, few fund companies still charge front-end loads; most are no-load or have back-end loads that decline as shares are held longer.
Front Running - Attempting to buy or sell securities ahead of an anticipated reaction to news or publicity.
Fully Diluted - Number of common shares outstanding, including all securities that could be converted into common shares, such as warrants, stock options, convertible bonds and preferred stock.
Fund Family - Group of mutual funds marketed and/or managed under a common brand name or management company. Examples include Dreyfus, Kemper, Fidelity, T. Rowe Price, Franklin/Templeton, etc.
Fundamental Analysis - Investment research method based on benchmark indicators of a stock’s value or potential value as measured by the financial evaluation of the stock’s underlying corporation. Fundamental analysis of a stock may consider a company’s earnings, earnings growth, book value, cash flow, etc. in relation to its share price.
Futures - Derivative security based on the future price of another security or commodity; a futures contract is an agreement to buy or sell a specific amount at a particular price in a specific future month.