Your Free Online Legal Dictionary • Featuring Black’s Law Dictionary, 2nd Ed.

Category: F

FAIL TO DELIVER

A situation where a selling DEALER has not delivered securities to the buying dealer, and will thus not receive payment. Fails are commonly used as a measure of operationsbased PROCESS RISK. See

FAMILY BRAND

A brand that several products are under. Refer to brand family and line extension.

FAT MAN STRATEGY

The way the directors of a company that prevent hostile takeover. It buys assets to make itself not attractive to buy. It also takes on debt as well.

FEASIBILITY STUDY

Analyzing to see if a project is technically doable, cost effective, and profitable. AKA feasibilty analysis. Refer to cost benefit analysis.

FEED FORWARD

1. turning logical cause and effect events upside down. 2.when output of the previous step down the line.

FIBER

Basic components of fabrics. It must be 100 times its width and be at least 5mm if made into yarn. It is also spelled as fibre.

FIELD RESEARCH

An activity that collects data by many means like phone and mail surveys.

FINAL PROSPECTUS

A document used to sell a security. It describes the enterprise, management style, and financial status of the company. Compare this term to Red Herrig Prospectus.

FINANCIAL CLOSE

When conditions are finished or waived and the drawdown is possible for a contract.

FINANCIAL HOLDING COMPANY

In the United States, a holding company authorized under the GRAMMLEACHBLILEY ACT that is permitted to own entities involved in securities TRADING and UNDERWRITING, CORPORATE FINANCE, INSURANCE, asset management, and commercial banking.

FINANCIAL SETTLEMENT

A DERIVATIVE contract that requires SETTLEMENT in financial or cash, rather than physical, terms. See also PHYSICAL SETTLEMENT.

FINANCING INSTRUMENT

Documents used as a certificate, note or bond that gets equity capital or loan capital.

FIRE DEPARTMENT SERVICE CLAUSE

A rule in fire insurance that pays the insured for expense incurred by the fire department. This is a reimbursement after the insured has already paid the expenses.

FIRST LIEN

The claim that takes precedence over all others.

FIRST-TO-DEFAULT SWAP

An OVER THE COUNTER DEFAULT SWAP comprised of a BASKET of reference credits that entitles the purchaser to a payout on the first one that DEFAULTS; once a default occurs, the transaction

FISHER HYPOTHESIS

The idea that interest have premium inflation anticipation built in and the rates of interest are linked to a real rate that is constant. It is named after Irving Fisher who wrote

FIXED ASSETS (NET) TO NET WORTH RATIO

The overhead absorbed by the assets. If an unexpected event happens than this ratio is used to decide the loss. The labor hours budgeted and the overhead is used to come to

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