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

Category: F

FLIGHT CAPITAL

Money that leaves the country and never returns. A lack of confidence in the economy, high taxes, persecution, or discrimination causes this. It can be illegal or legal money.

FLOATING CHARGE

A mortgage on an asset that changes in quantity or value to make sure the loan is repaid. No charge is listed for the owner. If default happens the asset is frozen

FLOTATION COST

The expense a company bears in issuing new securities, typically computed as the difference between the price received by the company on an issue and the amount charged to investors (the UNDERWRITING

FOAM THE RUNWAY

When extra funds are sought to save a company from going under. It prevents the claiming of bankruptcy.

FONT CACHE

The printer’s solid state memory on hard drive for temporary storage of fonts.

FOOT OF HEAD

An old unit of water pressure. It is .43 psi, 29.90 millibar, and .88in mercury.

FORDISM

The idea that aims for higher productivity using standardized means to makes tasks smaller and achievable. A conveyer belt or assembly line is commonly used.

FORM SDF

Shipping bills accuracy, completeness, and compliance is attested by exporters to customs authorities by submitting this form. An exporter confirms the buyers payment is equal to the full export value stated on

FORTRESS APPROACH

to disaster proof a facility or position, every possible precaution is taken as a part of a risk avoidance approach.

FORWARD FORWARD

A FORWARD transaction that is contracted to start at a future date. See also RATE, FORWARD RATE AGREEMENT.

FORWARD RATE AGREEMENT (FRA)

A single period FORWARD contract on INTEREST RATES that does not involve an exchange of PRINCIPAL; at maturity the parties simply exchange the differential prevailing between the interest rate and the rate

FOUNDATION METHODOLOGY

A creditbased CAPITAL ALLOCATION process promulgated by the BANK FOR INTERNATIONAL SETTLEMENTS (BIS) under the INTERNAL RATINGS BASED (IRB) APPROACH. BANKS use internal models to determine a COUNTERPARTY

FRANKED DIVIDEND

The issuer’s tax rate and dividend amount are considered in this Australian method of avoiding double taxation.

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

FREEZE

Specific actions, processing, provisions, rates, rights, or rules are stopped for a limited time period.

FREQUENCY

How often an event occurs. Typically, the event repeats at some rate or cyclic period or is measurable by occurrences per period, like ‘hertz’ as cycles per second.

FRIENDLY TAKEOVER

Amiable takeover of a company by another. Each company’s owners agreed to the terms.

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