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

Category: F

FIRST ROUND FINANCING

Funds given by lenders or investors outside a firm. It happens when growth occurs at a steady rate and more is needed to keep up.More capital will be needed after the inital

FISCAL EFFORT

The profit a government collects. It depends on taxes, exemptions, and breaks that individuals or businesses are offered. It estimates the total amount that can be collected. It is a percent of

FIVE FORCES

External factors like new competitors, existing competitors, substitute products, buyers, and suppliers. It shows how viable a market is and how much profit can be expected should the firm choose to invest.

FIXED CHARGES

Overhead expenses that are related to production capacity but not the level of output. It can be rent, interest, and insurance. Refer to fixed charge.

FIXED PREMIUM

PREMIUM payable by an INSURED for an INSURANCE contract that remains constant during the payment period. See also FLEXIBLE PREMIUM.

FIXED TRIGGER

A TRIGGER in an INSURANCE contract that indicates whether or not an event has occurred; a fixed trigger does not typically impact the payoff value of the contract, it simply indicates whether

FLASH SERVICES PMI

The total responses to a survey of managers. It shows the economic conditions. It pertains to the service sector. It uses 85% of the surveys taken.

FLEXTIME

A work schedule that lets a full time employee choose their hours. It is done within limits and is done before core time is scheduled for all employees.

FLOATING ASSET

An asset that changes in many ways. It can be quantity, value, accounts receivable, inventory, or shares outstanding.

FLOTATION

When a firm sells to the general public on the stock exchange.

FLY ASH

Solid matter that isn’t combustable and expells gas from the burning process. It can contain toxins like dioxins, lead, and mercury.

FOMC MEETING

When the FOMC meet 8 times a year. All 24 members meet and present on issues and trends to make important decisions about the open market. There are 12 directors that are

FOOT IN THE DOOR

Getting a person to agree by asking them for something small first than something bigger. Salespersons use this to get their foot in the door. A small request is more likely to

FORCING

Changing costs from sustaining to cost object activity.It is done when the cost is not related to the activity being done. It can be used in plants to maintain costs from the

FORM S-1

A private company specifies its intention to publicly sell its stock on this Securities & Exchange Commission (SEC) filing. Refer to Initial Public Offering (IPO).

FORRESTER RESEARCH CUSTOMER EXPERIENCE INDEX (CXPI)

Using survey response about dealing with companies meeting consumer needs and enjoying easy interaction. The survey contacts about 5,000 customers. The data summarizes experiences with companies as a consumer sentiment indicator.

FORWARD FOREIGN EXCHANGE (FX) REVERSA

L An ARBITRAGE strategy in the FOREIGN EXCHANGE market to take advantage of mispricing in currency FORWARDS. The conversion occurs when forwards appear RICH, and is created by selling a forward, buying

FORWARD RATE

(1) The rate quoted for future delivery of an ASSET, used in the calculation of FORWARDS and FUTURES. A quoted forward rate may reflect a FORWARD PREMIUM or FORWARD DISCOUNT. (2) See

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