Firm Commitment Underwriting Underwriting wherein there is a commitment by an investment banker to purchase the complete issue. For all unsold shares, the banker undertakes complete financial responsibility. … [Read more...]
Firm Order
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Firm Order - A market instruction for a brokerage's proprietary account to sell/ buy a security. The trader needs to be authorized by the brokerage in order to execute the transaction. -Buy or sell orders executed by brokers for their clients' accounts. The customer's confirmation … [Read more...]
Firm’s Net Value of Debt
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Firm's Net Value of Debt The total value of a firm less the total debt owed by it. … [Read more...]
Firm-Specific Risk
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Firm-Specific Risk Also termed: unsystematic risk, diversifiable risk. Risk that is unique to the firm. … [Read more...]
First Notice Day
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First Notice Day First day when intent to deliver notices for actual physical delivery of instruments or commodities is authorized. The day varies from contract to contract and exchange to exchange. … [Read more...]
First-Call
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First-Call Terminology used with CMOs. Denotes the beginning of a cash flow cycle during a time frame wherein positive flows are expected. … [Read more...]
First-In-First-Out (FIFO)
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First-In-First-Out (FIFO) Inventory management principle basing valuation of goods sold on the cost of the items in the inventory that are oldest. … [Read more...]
First-In-Still-Here (FISH)
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First-In-Still-Here (FISH) Term used in accounting to describe inventory that is still on hand because it is unsold owing to inattention or obsolescence. … [Read more...]
First-Pass Regression
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First-Pass Regression Estimation of betas of portfolios of securities using time series regression. … [Read more...]
Fiscal Agency Agreement
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Fiscal Agency Agreement A substitute for a trust deed for a bond. The fiscal agent performs the role of agent to the borrower. … [Read more...]
Fisher Effect
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Fisher Effect Theory stating that nominal rates of interest of two or more nations should equal the investors’ required real rate of return plus recompense for each country’s expected inflation … [Read more...]
Fisher’s Separation Theorem
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Fisher's Separation Theorem Also called portfolio separation theorem. States that a firm's choice in investments is distinct and separate from the firm owner’s investment attitudes. … [Read more...]
Fiscal Policy
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Fiscal Policy Government policies that are aimed at stabilizing economic conditions through the use of its spending and tax collection. … [Read more...]
Five Cs of Credit
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Five Cs of Credit Parameters or characteristics that help evaluate creditworthiness of a customer: Capacity, character, capital, conditions and collateral. … [Read more...]
Fixed Annuity
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Fixed Annuity Insurance contract where the issuers pay a fixed dollar amount to the annuitant over the entire contract term. Generally, the contract ends when the annuitant dies. … [Read more...]
Fixed Asset
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Fixed Asset Property owned by a firm and used for producing its earnings. Real estate (property), plant and machinery equipment are all examples of tangible fixed assets. Patents and trademarks, goodwill are examples of intangible fixed assets. … [Read more...]
Fixed Asset Turnover Ratio
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Fixed Asset Turnover Ratio Comparison of sales to fixed assets presented as a ratio. … [Read more...]
Fixed Cost
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Fixed Cost Costs that, in total, are fixed and non variable for specific periods and given levels of production. … [Read more...]
Fixed-Annuities
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Fixed-Annuities Insurance contracts that pay a fixed amount in dollars per specified period. Such contracts may also be offered by financial institutions other than insurance companies. … [Read more...]
Fixed-Charge Coverage Ratio
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Fixed-Charge Coverage Ratio Measures the degree to which a firm can fulfill its fixed-charge obligations. Expressed as a ratio. Compares (net earnings prior to tax adjustments plus interest charges paid and long-term payments towards leases) with ( long-term payments towards leases … [Read more...]
