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

Category: F

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

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.

FRONT LINE MANAGEMENT

Top-level management below the vice-presidents and directors. Usually directly accountable for goods and services production, and clerical staff and shop floor employees supervision. Known as the first or second level managers, with

FUEL EFFICIENCY

A ratio of useful energy results over measured incoming fuel. An example is miles per gallon.

FULL COVERAGE

Guaranteed payment for all costs for any event protected in an insurance policy. Deductibles are usually in force. Protected against every type of loss.

FULL SERVICE MERCHANT WHOLESALER

(1) cash and credit card retailing, (2) supplier merchandising and promotion support, (3) its own sales force, (4) its own market research, and (5) presale, installation, and post sale services are what

FULLY PAID POLICY

A policy whose payment scheduled has been completely met. Often a limited payment policy. An example is a 30pay policy after 30 years of regular premium payments – it is fully paid.

FUNCTIONAL FLEXIBILITY

The ability of company organizations to be multi-functional, able to move employees to other duties or responsibilities within the company. Ability to adapt to changing conditions and requirements. Training, management, and outsourcing

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