Fixed Debenture A note that comes with a fixed charge over the issuer’s property or assets. The charge remains valid until the debenture is repaid. Fixed debentures may be issued singly or in a series to raise funds for business operations. … [Read more...]
Fixed-Dollar Obligations
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Fixed-Dollar Obligations Traditional or conventional bonds where a fixed percentage of par value of the bond is the coupon rate. … [Read more...]
Fixed-Dollar Security
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Fixed-Dollar Security Debt security that is non negotiable. It can usually be redeemed at a predetermined fixed price or in line with a schedule of fixed values. For example, government savings bonds or bank deposits may be used for determining price. … [Read more...]
Fixed-Exchange Rate
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Fixed-Exchange Rate Government policy to link the country’s currency to another nation’s currency value or gold. A basket of currencies or commodities other than gold may also be used. … [Read more...]
Fixed-Income Equivalent
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Fixed-Income Equivalent Also termed busted convertible. Securities that are convertible but trade at present like a straight security owing to low prevailing prices of the optioned common stock. … [Read more...]
Fixed-Income Instruments
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Fixed-Income Instruments Assets yielding a fixed-dollar amount. For example, preferred stock or bonds. … [Read more...]
Fixed-Income Market
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Fixed-Income Market Market wherein bonds or preferred stock are traded. … [Read more...]
Fixed-Period ARM
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Fixed-Period ARM Adjustable-rate mortgage (ARM) that comes with a fixed interest rate for a specified initial period. After this period expires, the interest rate is adjusted to stay in line with an index plus a margin. … [Read more...]
Fixed Price Basis
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Fixed Price Basis Fixed price offer of securities. … [Read more...]
Fixed-Price Tender Offer
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Fixed-Price Tender Offer Single time offer to buy a specified number of shares, with price being fixed. The price normally includes a premium over currently prevailing ones. … [Read more...]
Fixed-Rate Loan
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Fixed-Rate Loan The rate fixed for the entire term of the loan. This rate does not change until maturity. … [Read more...]
Fixed-Rate Payer
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Fixed-Rate Payer Term used with interest rate swaps. Refers to the counterparty paying a fixed rate. Usually a floating-rate payment is taken in exchange. … [Read more...]
Flat Benefit Formula
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Flat Benefit Formula Technique that determines a participant's gains in a defined benefit plan. Calculated by multiplying the flat benefit per month by the total number of months of service. … [Read more...]
Flat Price Risk
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Flat Price Risk Entering a short or long position that is not hedged by an offsetting position. … [Read more...]
Flat Trades
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Flat Trades - Any security trading without accrued interest or where its price includes accrued interest - Default trading pattern for bonds. The price quoted encompasses accrued, unpaid interest along with principal. … [Read more...]
Flight to Quality
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Flight to Quality Investor mentality that prompts a movement towards low risk government bonds when there is high degree of uncertainty in the economy. … [Read more...]
Flip-Flop Note
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Flip-Flop Note Switch option on a note that lets investors move between two different debt types. … [Read more...]
Float
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Float Magnitude of shares that can be actively traded in the market. Shares owned by employees and major stakeholders are excluded if they have formally agreed to avoid selling unless another person is made an offer of the stock. … [Read more...]
Flattening of the Yield Curve
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Flattening of the Yield Curve Fluctuation in yield curve wherein the spread/ difference between the long term yield and short-term yield on a Treasury has reduced. Can be compared with butterfly shift and yield curve steepening. … [Read more...]
