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

Category: F

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

FIXED INTERVAL INVENTORY MODEL

Inventory when stock is watched regularly at intervals and if it falls below a level a reorder is placed. This is different than continuous stock intervals.

FLANKING

Marketing to a group that is not being served by the competition. They must fill the need or lose customers creating profit for the company that has targeted the market unexpectably.

FLAT YIELD

The interest on a security that is compared to the price. It is charged annually. It is shown as a percentage. Refer to redeptive yield.

FLEXIBLE SPECIALIZATION

When a firm has multi use equipment and multi tasking employees to adapt to market changes. The changes are fast and the company must change to continue to function and profit.

FLIPPER

An investor receiving an ALLOCATION in an INITIAL PUBLIC OFFERING, ADDON, or NEW ISSUE that sells the securities several hours or days after issuance to lockin a shortterm capital gain. Also known

FLOOR BROKER

A stock exchange memeber that executes orders for another party. Refer to floor trader.

FLUORIDES

A gas with flourine that is caused by manufacturing. It is harmful and can affect humans, plants, and animals.

FOLLOWER ADVANTAGE

The leverage a firm can get for long term competition due to its late entry in the market. It can get clarification, knowledge, opportunity, distrubution, and pioneers mistakes that have previously been

FOOD LABEL

A panel on labels with the nutritional values for that item. It lists the items facts and ingredients as well as vitamin content.It is based on the 2,000 calorie diet. The values

FOR YOUR INFORMATION (FYI)

Noting something about an item to make it more interesting to the target group. It can be a memo for a special audience.

FORGERY OR ALTERATION COVERAGE FORM

Commercial crime insurance. Forgery protection for an insured’s account in case a forged or illegally modified is used to get money from that account.

FORMATTING

Preparing an area for use. This can be a digital storage media or a document. In both cases the area will retain data in a standardized, fixed layout. A particular field of

FORWARD COVER

A hedge against fluctuating adverse exchange rates. Currency sale or purchase at a fixed price on a fixed future date. The purchase is arranged or bought as a contract or option.

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