1913 Federal Reserve Act

U.S. law establishing the Federal Reserve System to manage monetary policy and banking.

FAANG Stocks

Tech giants (Facebook, Amazon, Apple, Netflix, Google), known for high growth and market influence.

Face Value

The nominal value of a bond or stock, repaid at maturity or issuance.

Facility

A financial arrangement, like a loan or credit line, for borrowing needs.

Factor

A financial intermediary buying receivables at a discount to provide immediate cash.

Factor Investing

Investing based on attributes (e.g., value, momentum) driving returns, per factor models.

Factor Market

Markets for inputs like labor, capital, or land, used in production.

Factors of Production

Resources (land, labor, capital, entrepreneurship) used to produce goods/services.

FactSet

A financial data platform providing analytics and market insights for investors.

Facultative Reinsurance

Reinsurance for specific policies, negotiated individually, unlike treaty reinsurance.

Fail

A trade that doesn’t settle due to delivery or payment issues.

Fair Credit Billing Act (FCBA)

U.S. law protecting consumers from billing errors on credit accounts.

Fair Credit Reporting Act (FCRA)

U.S. law regulating credit report accuracy and consumer privacy.

Fair Debt Collection Practices Act (FDCPA)

U.S. law limiting debt collectors’ practices to protect consumers.

Fair Labor Standards Act

U.S. law setting labor standards, like minimum wage and overtime pay.

Fair Market Value (FMV)

The price an asset would fetch in an open, competitive market.

Fair Value

An asset’s estimated worth based on market conditions or valuation models.

Fallen Angel

A bond downgraded from investment-grade to junk status, increasing risk.

Falling Knife

A rapidly declining stock, risky to buy until it stabilizes.

Fama and French Three Factor Model

A model explaining stock returns via market risk, size, and value factors.

Family and Medical Leave Act (FMLA)

U.S. law granting unpaid leave for family or medical reasons, impacting payroll.

Family Limited Partnership (FLP)

A partnership for family wealth management, offering tax and control benefits.

Family Offices

Private firms managing wealth for high-net-worth families, handling investments and taxes.

FANG Stocks

Subset of FAANG (Facebook, Amazon, Netflix, Google), excluding Apple.

Farmers Home Administration (FmHA)

Former U.S. agency providing loans for rural housing and farming, now part of USDA.

Fast Fashion

Rapid production of affordable, trendy clothing, impacting retail and supply chains.

Fast-Moving Consumer Goods (FMCG)

Low-cost, high-turnover goods like food or toiletries, driving retail sales.

FDIC Insured Account

Bank accounts insured up to $250,000 by the FDIC against bank failure.

Fear and Greed Index

A metric gauging market sentiment, balancing fear (selling) and greed (buying).

Fed Balance Sheet

The Federal Reserve’s assets and liabilities, reflecting monetary policy actions.

Federal Agencies

U.S. government bodies, like the SEC, regulating financial activities or markets.

Federal Communications Commission (FCC)

U.S. agency regulating communications, impacting telecom and fintech sectors.

Federal Deposit Insurance Corporation (FDIC)

U.S. agency insuring bank deposits, protecting against bank failures.

Federal Direct Loan Program

U.S. program offering student loans with fixed rates, like Stafford or PLUS loans.

Federal Discount Rate

Interest rate the Fed charges banks for short-term loans, influencing liquidity.

Federal Funds

Overnight loans between banks to meet reserve requirements.

Federal Funds Rate

The target rate for federal funds, set by the Fed to guide monetary policy.

Federal Home Loan Bank System (FHLB)

A network providing funding to banks for housing and community lending.

Federal Housing Administration (FHA)

U.S. agency insuring mortgages, enabling lower down payments for homebuyers.

Federal Housing Administration Loan

FHA-insured mortgages with lenient credit and down payment requirements.

Federal Income

Income subject to federal taxation, like wages or dividends, reported annually.

Federal Insurance Contributions Act (FICA)

U.S. law mandating payroll taxes for Social Security and Medicare.

Federal Open Market Committee (FOMC)

Fed body setting monetary policy, like interest rates, via open market operations.

Federal Open Market Committee Meeting (FOMC Meeting)

Periodic FOMC gatherings to decide monetary policy, impacting markets.

Federal Poverty Level (FPL)

U.S. income threshold determining eligibility for subsidies or assistance programs.

Federal Reserve Bank

One of 12 regional banks in the Federal Reserve System, managing monetary policy.

Federal Reserve Board (FRB)

The governing body of the Federal Reserve, overseeing monetary policy.

Federal Reserve System (FRS)

U.S. central banking system managing currency, rates, and financial stability.

Federal Trade Commission (FTC)

U.S. agency protecting consumers and regulating anti-competitive practices.

Federal Unemployment Tax Act (FUTA)

U.S. law funding unemployment benefits via employer payroll taxes.

Feasibility Study

An analysis of a project’s viability, assessing costs, risks, and returns.

Fee

A charge for financial services, like advisory, transaction, or management fees.

Feed-In Tariff (FIT)

Payments for renewable energy supplied to the grid, encouraging green investment.

Feeder Fund

A fund investing in a larger “master” fund, pooling smaller investors’ capital.

FHA 203(k) Loan

An FHA loan for home purchase and renovation, financing repairs.

Fiat Money

Currency without intrinsic value, backed by government trust (e.g., USD).

Fibonacci Extensions

Technical analysis tool projecting price targets beyond Fibonacci retracement levels.

Fibonacci Numbers and Lines

Mathematical sequence used in trading to identify support/resistance levels.

Fibonacci Retracement

A tool predicting price reversals using Fibonacci ratios (e.g., 38.2%, 61.8%).

FICO Score

A credit score (300-850) assessing creditworthiness, used by lenders.

Fidelity Bond

Insurance protecting against employee theft or fraud in financial roles.

Fiduciary

A person or entity managing assets for another, with a duty of loyalty and care.

Filing Status

Taxpayer’s marital or household status (e.g., single, married) affecting tax rates.

Fill Or Kill (FOK)

A trade order executed immediately in full or canceled, ensuring no partial fills.

Finance

The management of money, investments, and financial resources.

Financial Account

A balance of payments component tracking asset flows, like investments.

Financial Accounting

Recording and reporting financial transactions for external stakeholders.

Financial Accounting Standards Board (FASB)

U.S. body setting accounting standards, like GAAP, for financial reporting.

Financial Advisor

A professional providing investment, tax, or retirement planning advice.

Financial Analysis

Evaluating financial data to assess performance, risks, or investment opportunities.

Financial Asset

Intangible assets (e.g., stocks, bonds) deriving value from contractual claims.

Finance Charge

The cost of borrowing, including interest and fees, on loans or credit.

Financial Crisis

A severe disruption in financial markets, like 2008, causing economic turmoil.

Financial Distress

Difficulty meeting financial obligations, often leading to restructuring or bankruptcy.

Financial Economics

Studying how economic principles apply to financial markets and decisions.

Financial Engineering

Designing complex financial instruments or strategies, like derivatives.

Financial Exposure

The risk of loss from market, credit, or operational factors.

Financial Guarantee

A promise to cover a borrower’s debt if they default, like a bond guarantee.

Financial Health

A company or individual’s ability to meet obligations and achieve goals.

Financial Inclusion

Providing access to financial services for underserved populations.

Financial Independence, Retire Early (FIRE)

A movement to save aggressively for early retirement and financial freedom.

Financial Industry Regulatory Authority (FINRA)

U.S. regulator overseeing broker-dealers, ensuring fair practices.

Financial Information Exchange (FIX)

A protocol for electronic trading and data exchange in financial markets.

Financial Institution (FI)

Entities like banks or brokerages handling financial transactions or services.

Financial Instrument

Contracts creating financial assets or liabilities, like stocks or bonds.

Financial Intermediary

An entity (e.g., bank) facilitating transactions between borrowers and savers.

Financial Literacy

Knowledge of financial concepts, enabling informed money management.

Financial Market

A marketplace for trading assets like stocks, bonds, or currencies.

Financial Modeling

Creating models to forecast financial performance or value investments.

Financial Performance

A company’s profitability, efficiency, and growth, measured by metrics like EPS.

Financial Plan

A strategy for achieving financial goals, like saving or investing.

Financial Planner

A professional creating tailored financial plans for clients’ goals.

Financial Risk

The potential for financial loss from market, credit, or operational issues.

Financial Risk Manager (FRM)

A certification for professionals managing financial risks, like credit or market risk.

Financial Sector

Industries involved in finance, like banking, insurance, and investments.

Financial Statement Analysis

Evaluating financial statements to assess performance and risks.

Financial Statements

Reports (e.g., balance sheet, income statement) summarizing financial activity.

Financial Structure

A company’s mix of debt, equity, and other financing sources.

Financial System

The network of institutions, markets, and regulations enabling financial transactions.

Financial Technology (Fintech)

Technology-driven financial services, like mobile banking or robo-advisors.

Financial Times Stock Exchange Group (FTSE)

Indices (e.g., FTSE 100) tracking stock market performance, primarily in the UK.

Financing

Raising funds for business or investments via debt or equity.

Finder's Fee

A commission paid for connecting parties in a financial or business deal.

FINRA BrokerCheck

A FINRA tool to verify broker credentials and disciplinary history.

Fire Insurance

Coverage for property damage due to fire, common in business or home policies.

Firm

A business entity, like a corporation or partnership, engaged in financial activities.

First In, First Out (FIFO)

An inventory method where earliest goods purchased are sold first.

First Mortgage

The primary loan on a property, with priority in foreclosure.

First Mover

A company pioneering a market, gaining competitive advantages like brand loyalty.

First Notice of Loss (FNOL)

Initial report of an insurance claim, triggering the claims process.

First World

Developed, high-income countries with advanced economies and infrastructure.

Fiscal Deficit

When government spending exceeds revenue, often funded by borrowing.

Fiscal Multiplier

The ratio of economic output increase to government spending or tax changes.

Fiscal Policy

Government use of spending and taxation to influence the economy.

Fiscal Year (FY)

A 12-month period for financial reporting, not necessarily the calendar year.

Fiscal Year-End

The last day of a fiscal year, used for financial reporting and taxes.

Fisher Effect

Interest rates reflect expected inflation plus real return, linking rates and prices.

Fisher Transform Indicator

A technical indicator normalizing price data to identify reversals.

Fitch Ratings

A credit rating agency assessing the creditworthiness of issuers and securities.

Five Cs of Credit

Character, capacity, capital, collateral, and conditions, used in lending decisions.

Five-Year Rule

IRS rules on Roth IRA withdrawals or trust distributions, impacting taxes.

Fixed Annuity

An annuity with guaranteed payments, offering predictable income.

Fixed Asset

Long-term tangible assets, like buildings, used in business operations.

Fixed Asset Turnover Ratio

Revenue divided by fixed assets, measuring asset utilization efficiency.

Fixed Capital

Long-term assets (e.g., machinery) used for production over multiple periods.

Fixed-Charge Coverage Ratio

Earnings divided by fixed charges (e.g., interest, leases), assessing debt coverage.

Fixed Cost

Costs unchanged by production levels, like rent or salaries.

Fixed Exchange Rate

A currency’s value fixed to another currency or asset, like gold.

Fixed Income

Investments (e.g., bonds) providing regular, predictable payments.

Fixed Income Clearing Corporation (FICC)

A clearinghouse for fixed-income securities, ensuring trade settlement.

Fixed-Income Security

Debt instruments, like bonds, paying fixed or predictable interest.

Fixed Interest Rate

An unchanging interest rate on a loan or bond, offering payment stability.

Fixed-Rate Mortgage

A mortgage with a constant interest rate, ensuring predictable payments.

Fixed-Rate Payment

A consistent loan payment amount, common in fixed-rate loans.

Flat

A market or security with minimal price movement, lacking a clear trend.

Flat Tax

A single tax rate applied to all income levels, simplifying taxation.

Flat Yield Curve

When short- and long-term bond yields are similar, signaling economic uncertainty.

Flexible Manufacturing Systems (FMS)

Adaptable production systems, reducing costs in dynamic markets.

Flexible Spending Account (FSA)

A tax-advantaged account for medical or dependent care expenses.

Flip

Buying and quickly reselling assets, like real estate, for profit.

Float

Shares available for public trading, excluding restricted or insider-held stock.

Floating Charge

A lien on changing assets (e.g., inventory), securing debt until crystallized.

Floating Exchange Rate

A currency value determined by market forces, not fixed by governments.

Floating Interest Rate

An interest rate that adjusts with market conditions, like LIBOR-based loans.

Floating Rate Fund

A fund investing in variable-rate securities, like floating-rate bonds.

Floating Rate Note (FRN)

A bond with an interest rate tied to a benchmark, adjusting periodically.

Floating Stock

Shares available for trading in the open market, excluding locked-up shares.

Floor Area Ratio (FAR)

Building floor area divided by lot size, used in real estate zoning.

Floor Trader (FT)

A trader executing orders on an exchange floor, less common today.

Flotation

Issuing securities to the public, like an IPO, to raise capital.

Flotation Cost

Expenses (e.g., underwriting fees) incurred when issuing new securities.

Flow of Funds (FOF)

Data tracking money movement between economic sectors, like households and banks.

Flow-Through Entity

A business (e.g., LLC) passing income to owners, avoiding double taxation.

Folio Number

A unique identifier for an investment account or transaction record.

Follow-On Offering

Additional shares issued by a public company after its IPO.

Follow On Public Offer (FPO)

Synonym for follow-on offering, raising additional capital via shares.

Food And Drug Administration (FDA)

U.S. agency regulating drugs and food, impacting biotech and pharma investments.

Footnotes to the Financial Statements

Explanatory notes clarifying financial statement details, like accounting policies.

For Sale By Owner (FSBO)

Selling property without a real estate agent, saving on commissions.

Forbearance

Temporary loan payment relief, often with interest accrual, for borrowers in distress.

Force Majeure

A contract clause excusing performance due to unforeseen events, like natural disasters.

Forecasting

Predicting financial or economic outcomes, like revenue or market trends.

Foreclosure

Seizing and selling a property when a borrower defaults on a mortgage.

Foregone Earnings

Income sacrificed by choosing one investment or action over another.

Foreign Account Tax Compliance Act (FATCA)

U.S. law requiring reporting of foreign accounts to combat tax evasion.

Foreign Aid

Financial or material assistance to other countries, often for development or relief.

Foreign Corrupt Practices Act

U.S. law prohibiting bribery of foreign officials by companies.

Foreign Currency Convertible Bond (FCCB)

A bond issued in a foreign currency, convertible into the issuer’s stock.

Foreign Currency Swap

Exchanging principal and interest in different currencies to hedge or speculate.

Foreign Direct Investment (FDI)

Investing in a foreign business or assets, like factories, for control.

Foreign Earned Income Exclusion

U.S. tax break excluding certain foreign income for expatriates.

Foreign Exchange

Trading or converting one currency for another, like USD to EUR.

Foreign Exchange Reserves

A country’s holdings of foreign currencies, used for trade or stability.

Foreign Exchange Risk

Risk of loss from currency value fluctuations in international transactions.

Foreign Institutional Investor (FII)

Foreign entities investing in a country’s financial markets, like stocks or bonds.

Foreign Investment

Capital invested in foreign markets, businesses, or assets.

Foreign Portfolio Investment (FPI)

Investments in foreign securities, like stocks or bonds, without control.

Foreign Tax Credit

A U.S. tax credit offsetting taxes paid to foreign governments.

Forensic Accounting

Investigating financial records for fraud, disputes, or legal cases.

Forensic Audit

A detailed examination of financial records to uncover fraud or misconduct.

Forex (FX)

The global market for trading currencies, operating 24/7.

Forfaiting

Purchasing trade receivables at a discount, providing exporters immediate cash.

Forfeited Share

Shares lost by an investor or employee, often due to unmet conditions.

Form 3

SEC filing disclosing insider ownership of a company’s securities.

Form 4

SEC filing reporting changes in insider ownership or transactions.

Form 144

SEC filing for insiders planning to sell restricted or control securities.

Form 1040X

IRS form to amend a previously filed tax return.

Form 1045

IRS form for quick tax refunds via net operating loss carrybacks.

Form 1065

IRS form for partnerships to report income, losses, and deductions.

Form 1095-A

IRS form reporting health insurance coverage from the Marketplace.

Form 1095-B

IRS form reporting health coverage from insurers or employers.

Form 1095-C

IRS form reporting employer-provided health insurance coverage.

Form 1098

IRS form reporting mortgage interest or tuition payments for deductions.

Form 1099-B

IRS form reporting proceeds from broker or barter transactions.

Form 1099-DIV

IRS form reporting dividend income and capital gains distributions.

Form 1099-INT

IRS form reporting interest income, like from savings or bonds.

Form 1099-MISC

IRS form reporting miscellaneous income, like freelance payments.

Form 1099-R

IRS form reporting distributions from retirement plans or annuities.

Form 1099-Q

IRS form reporting distributions from education savings accounts, like 529 plans.

Form 1120S

IRS form for S corporations to report income, losses, and deductions.

Form 1310

IRS form to claim a tax refund for a deceased taxpayer.

Form 13F (SEC)

SEC filing by institutional investors reporting quarterly holdings over $100 million.

Form 2106

IRS form for employee business expense deductions, like travel or meals.

Form 2106-EZ

Simplified IRS form for unreimbursed employee business expenses, now obsolete.

Form 2439

IRS form reporting undistributed capital gains from mutual funds or REITs.

Form 2848

IRS form authorizing someone to represent a taxpayer before the IRS.

Form 4506

IRS form to request copies of previously filed tax returns.

Form 4562

IRS form reporting depreciation and amortization for business assets.

Form 4684

IRS form reporting losses from casualties or thefts, like natural disasters.

Form 4797

IRS form reporting sales of business property, like real estate or equipment.

Form 4952

IRS form for deducting investment interest expenses, like margin loans.

Form 5405

IRS form for claiming the first-time homebuyer tax credit, now expired.

Form 6251

IRS form calculating alternative minimum tax (AMT) liability.

Form 6252

IRS form reporting income from installment sales, like property.

Form 6781

IRS form reporting gains/losses from futures, options, or straddles.

Form 706

IRS form for estate tax returns, filed for deceased taxpayers’ estates.

Form 8283

IRS form reporting noncash charitable contributions, like property donations.

Form 8379

IRS form for injured spouse relief to protect tax refunds.

Form 8396

IRS form for claiming mortgage interest credits, aiding low-income homeowners.

Form 843

IRS form to request tax refunds or abatements for penalties or interest.

Form 8606

IRS form reporting nondeductible IRA contributions or Roth conversions.

Form 8949

IRS form reporting capital gains/losses from asset sales, like stocks.

Form ADV

SEC form disclosing investment advisor details, like fees and conflicts.

Fortune 100

The top 100 U.S. companies by revenue, per Fortune magazine.

Fortune 500

The top 500 U.S. companies by revenue, a benchmark for corporate success.

Forward Contract

A non-standardized agreement to buy/sell an asset at a future date and price.

Forward Dividend Yield

Projected dividend yield based on expected future dividends.

Forward Exchange Contract

An agreement to exchange currencies at a set rate on a future date.

Forward Integration

Acquiring or controlling distribution channels to enhance market control.

Forward Market

A market for trading assets for future delivery at agreed prices.

Forward Points

The interest rate differential in a forward exchange contract, adjusting spot rates.

Forward Premium

When a forward exchange rate exceeds the spot rate, reflecting interest rate differences.

Forward Price

The agreed price for a future asset delivery in a forward contract.

Forward Price-To-Earnings (Forward P/E)

Stock price divided by expected future earnings, forecasting valuation.

Forward Rate

The interest rate for a future period, implied by current rates.

Forward Rate Agreement (FRA)

A contract locking in an interest rate for a future loan or deposit.

Four Asian Tigers

Hong Kong, Singapore, South Korea, and Taiwan, known for rapid economic growth.

Four Percent Rule

A retirement withdrawal strategy taking 4% of savings annually, adjusted for inflation.

Four Ps

Product, price, place, and promotion, guiding marketing and financial strategies.

Fourth World

Poorest nations or communities with minimal economic development or infrastructure.

Fractal Indicator

A technical tool identifying repeating price patterns for trading signals.

Fractional Reserve Banking

Banks lending more than their reserves, expanding money supply and credit.

Fractional Share

Less than one share of stock, enabling small investors to buy high-priced stocks.

Franchise

A business model licensing a brand or system to a franchisee for fees.

Franchise Tax

A state tax on businesses for the privilege of operating, often based on revenue.

Franchisee

An individual or entity operating a franchise under a franchisor’s brand.

Franked Dividend

A dividend with attached tax credits, reducing recipient tax liability, common in Australia.

Fraud

Deceptive acts for financial gain, like falsifying records or Ponzi schemes.

Freddie Mac

A U.S. government-sponsored entity buying and securitizing mortgages.

Free Carrier (FCA)

A trade term where the seller delivers goods to a carrier chosen by the buyer.

Free Cash Flow (FCF)

Cash after operating expenses and capital expenditures, available for dividends or debt.

Free Cash Flow to Equity (FCFE)

Cash available to equity holders after debt and capital expenses.

Free Cash Flow to the Firm (FCFF)

Cash available to all capital providers, before debt payments.

Free Cash Flow Yield

FCF divided by market cap, measuring cash generation relative to value.

Free Enterprise

An economy driven by private businesses with minimal government intervention.

Free-Float Methodology

Weighting indices by shares available for public trading, excluding restricted stock.

Free Look Period

A period to review and cancel an insurance or annuity contract without penalty.

Free Market

An economy where prices and production are set by supply and demand.

Free On Board (FOB)

A trade term defining when risk and cost transfer from seller to buyer.

Free Rider Problem

Benefiting from resources without contributing, like in public goods or investments.

Free Trade

Trade without tariffs or restrictions, promoting global economic efficiency.

Free Trade Area

A region with reduced trade barriers among member countries, like NAFTA.

Freemium

A business model offering free basic services with paid premium features.

Frequency Distribution

A statistical summary of how often values occur, used in financial analysis.

Freudian Motivation Theory

Applying psychological motives to consumer behavior, influencing financial marketing.

Frictional Unemployment

Temporary joblessness during job transitions, impacting labor markets.

Friedrich Engels

Co-author of Marxist theory, influencing economic thought on capitalism and socialism.

Friedrich Hayek

Economist advocating free markets and limited government, impacting economic policy.

Fringe Benefits

Non-wage employee perks, like health insurance, impacting payroll costs.

Front-End Debt-to-Income Ratio (DTI)

Housing expenses divided by income, used in mortgage approvals.

Front-End Load

A fee charged upfront when buying a mutual fund, reducing invested capital.

Front Office

Customer-facing roles in finance, like trading or client relations, driving revenue.

Front-Running

Trading on insider or client order information before execution, often illegal.

Full Costing

Accounting allocating all costs (fixed and variable) to products or services.

Full Disclosure

Providing all material financial information to stakeholders, required by regulators.

Full Employment

An economy with minimal unemployment, maximizing labor utilization.

Full Ratchet

An anti-dilution provision adjusting share prices fully for new issuances.

Fully Amortizing Payment

Loan payments covering interest and principal, reducing balance to zero by maturity.

Fully Diluted Shares

Total shares including potential dilutive securities, like options or convertibles.

Fully Vested

Complete ownership of benefits or stock options after meeting vesting conditions.

Functional Currency

The primary currency used in a company’s operations or reporting.

Functional Obsolescence

Reduced asset value due to outdated design or technology, affecting depreciation.

Fund

A pool of capital invested for a specific purpose, like mutual or hedge funds.

Fund Flow

Tracking cash movement in/out of investments or sectors for analysis.

Fund Manager

A professional managing investment fund assets to achieve objectives.

Fund of Funds (FOF)

A fund investing in other funds, diversifying risk for investors.

Fundamental Analysis

Evaluating a company’s financials and operations to determine intrinsic value.

Fundamentals

Core financial metrics (e.g., earnings, revenue) driving a company’s value.

Funded Debt

Long-term debt obligations, like bonds or loans, requiring regular payments.

Funds From Operations (FFO)

A REIT metric: net income plus depreciation, excluding asset sales.

Funds Transfer Pricing (FTP)

Internal bank pricing to allocate costs/profits across business units.

Fungibility

The ability of assets (e.g., currency) to be interchangeable without affecting value.

Furniture, Fixtures, and Equipment (FF&E)

Tangible business assets, like desks or machinery, depreciated over time.

Future Value (FV)

The value of an investment at a future date, factoring in interest or growth.

Future Value of an Annuity

The total value of annuity payments at a future date, with compounding.

Futures

Standardized contracts to buy/sell an asset at a set price on a future date.

Futures Commission Merchant (FCM)

A firm executing and clearing futures trades for clients.

Futures Contract

A legal agreement to buy/sell an asset at a fixed price on a future date.

Futures Market

A marketplace for trading futures contracts, like commodities or indices.