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

Category: Finance Dictionary

FORMAL LOGIC

Determining an inference’s or conclusion’s validity or invalidity from two or more statements or premises. Classical or traditional system based on the theory of syllogism. Propose by the Greek philosopher Aristotle (384-322

FORTUNE 500

The 500 largest US manufacturing companies are listed based on reported revenue, display several corporate information reportings. It is an annual ranking by Fortune magazine.

FORWARD TRADING

Commodities, currencies, and securities trade with deliveries and settlement at a future (forward) date done at current market prices. Known also as front running.

FOUR P’S OF PERSUASION

Power, positioning, politeness and performance. These enhance one’s ability to persuade others in one’s work and personal life; focused around perception.

FRAGILITY

Category of how easily damage can occur from external pressure. Measure of an items’ susceptibility to fracture. To fail or loose value.

FRATERNAL BENEFIT SOCIETY

Members with common ethnic, religious, or vocational backgrounds form an organization to provide social, insurance, and other benefits.

FREE COINAGE

For a person or entity that brings coinage metal to the mint to be pressed, the legal coinage that results.

FREE RIDER

Contributing little or nothing to the effort, a person who enjoys the benefits from a collective effort.

FREEDOM OF INFORMATION

A citizen right to governmental information, requested in writing. Refuseals must be returned in writing. Reason for refusal can be requested, in writing.

FREEZE-OUT PROVISION

Corporate charter provision allowing a company to acquire noncontrolling stockholder shares at fair market value for a set time period. Two and five years is the typical time period.

FREQUENCY OF EXCLUSION

A rate of how often a particular group is skipped from a study or sample set. The statistical reliability of the expected outcome is typically damaged. The overall study or sample is

FRIVOLOUS APPEAL

Abusing the judicial process, delaying payment of a penalty, frustrating the opposing party, using baseless, unsubstantiated, questionable facts, and/or an insincere stance.

FRONT RUNNING

An illegal practice where a DEALER, MARKETMAKER, or SPECIALIST executes a transaction in advance of a customer trade in order to capture favorable price movements.

FUGITIVE MATERIAL

1. Substance changed during or after a chemical process, becoming partially inert or deactivated. 2. Duplicate copies, fliers, handouts, pamphlets, program listings that have a short useful life as printed material.

FULL INVOICE VALUE

Beneficiary able to draw full invoice amount rather than partial value. Documented as a notation on a letter of credit.

FULL TEXT DATABASE

Excluding drawings, graphics, pictures, an online database fully accessible, providing indexed articles in full text from one or more journals.

FULL-YEAR FORECAST

Year-ahead prediction of various financial and logistic needs for a business. Based on one or more prior years of business performance. It covers a range of business areas, mainly hiring and capital

FUNCTIONAL ORGANIZATION

The classic organizational structure. Hierarchically grouped employees, clear line management authority, and upward reporting to the single top leader. Downward hierarchy, with one top person, distinct lines of reporting, authority, and communication.

FUNGIBILITY

The ability to exchange or substitute one ASSET with another. Fungibility is important in COLLATERAL management for OVERTHECOUNTER DERIVATIVES and REPURCHASE AGREEMENTS, and in delivery decisions for EXCHANGETRADED DERIVATIVES.

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