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

Category: F

FLAG OF CONVENIENCE

A ship that is registered under the laws but is not registered to the mother country it came from. This is done fr lower taxes or leniency in requirements that cut costs.

FLEXIBLE FACTORY

A place that is made to do a variety of things and change with demands over time. an auto plant is an example of this. Refer to focused factory.

FLIGHT LEG

The part of the flight that is taken up by changing flights. AKA flight segment.

FLOATING EXCHANGE RATE

A system when a currency value changes by market demand and supply. The government has no control over this. Central banks do try to defend the rates in a range by buying

FLOTATION COSTS

The expenses with a new security. It is higher with the larger offering because of risk.

FOB DESTINATION

The location at which a customer must pay the charges to get the goods.

FONT FAMILY

A collection of type face of all kinds that are made to work together. They have the same size. It can be the roman family for example.

FOOT POUND

An old work unit. It is 1.36 joule, .32 calorie, and 0.0013 btu.

FORECASTING SYSTEM

Tools needed for analysis of data to predict future events based on past occurances. It uses models and forecasting analysis to name a few means of prediction.

FORMAL ADVERTISING

Legal notification advising the public of requests for job, program, or project bids. Typically, a government agency issues it.

FORTUITOUS EVENT

Having either positive or negative consequences, it is an unforeseen occurrence. An affected person has no control over it, be it a force natural or man-made, as it occurs by chance or

FORWARD FORWARD RATE

The FORWARD RATE used as a reference in a FORWARD RATE AGREEMENT or an INTEREST RATE FORWARD contract; it can be considered the interest rate for a certain period of time applicable

FORWARD START OPTION

An OVERTHECOUNTER COMPLEX OPTION that is contracted on trade date t to commence on forward date t+1, with the forward start date, STRIKE PRICE, and final maturity parameters established on trade date.

FOUNDERS’ SHARES

Stock issued to an entity’s originators. Entitled to after tax profits, no matter how much. Typically do not recognize any return or profit until common or ordinary stock holder dividend payout occurs.

FRACTIONAL RESERVE SYSTEM (FRS)

Modern banking system’s monetary policy. Banks hold typically 12 percent cash reserves, only a fraction, against depositors’ funds. Banks create deposits by loaning out the remaining 88 percent of deposited funds. This

FRANKED PAYMENT

Dividends paid that are subject to a tax credit, from a company to stockholders.

FREE ON RAIL

Pricing term for the seller putting goods on a railroad car, or truck in the US, without any extra charge at a named loading point. Known also as free on truck.

FREEDOM OF CHOICE

Unfettered right to do what one wants when one wants as one wants, except where it infringes or prevents another from doing what that one wants, and do so on. Also excluded

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