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

Category: Finance Dictionary

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

FRACTIONAL OWNERSHIP

Ownership of an asset by more than one person. The reasons for this approach are many. Allows obtaining an asset beyond the financial capabilities of an individual. Disperses control and accountability of

FRANCOPHONE COUNTRIES

Benin, Burkina Faso, Cameroon, Central African Republic, Chad, Comoros, Congo, Equatorial Guinea, France, Gabon, Cote d’Ivoire, Mali, Niger, Senegal, and Togo are countries where French is the common language.

FREE CASH FLOW

A CASH FLOW computation that is based on OPERATING CASH FLOW, less cash allocated to new and replacement ASSETS; alternatively it is net operating income less the REPLACEMENT COST for depreciated assets,

FREE OF CAPTURE OR SEIZURE CLAUSE

Exclusion statement, typically in marine insurance policies. A special, separate policy is necessary to cover excluded losses in situations such as warlike hostile acts, rebellion, mutiny, and civil strife.

FREEDOM FROM ENCUMBRANCE

No lien or other inhibitor to selling property or assets. No other person has any say or rights on a property or asset one wishes to sell.

FREIGHT-OUT

Arrival port-to-customer transportation costs. Part of the final, total transportation costs of the shipment.

FRONT END SPECIFICATIONS

Starting statements in a contract that set the basis of contract administration, rights, responsibilities, and relationships of the contracting parties. T

FUEL

A substance that provides energy when its makeup is chemically or physically altered. A product consumed, oxidized, or otherwise used.

FULL COST ACCOUNTING

Balance sheet’s breakdown by action or decision. Economic, environmental, health, and social costs posted into specific accounts.

FULL SERVICE HOTEL

Typically has a restaurant attached to it. Also refer to full service restaurant.

FULLY INSURED STATUS

A condition a person must achieve to be eligible to collect social security retirement benefits. A section of OASDHI detailing the condition requirements. OASDHI stands for ‘Old Age, Survivors, Disability, and Health

FUNCTIONAL DEPRECIATION

Reduced productivity of a capital asset due to obsolescence. Decreased capability and throughput of an asset.

FUNDED DEBT

Using bonds or loans to raise monies. Sometimes done through issuance of securities such a bonds.

FUTURE INCREASE OPTION

Disability benefits improvement at specific listed times during the plan or contract without rechecking insurability.

GAIA HYPOTHESIS

Gaia is the ancient Greek goddess of the Earth. A metaphor, a concept, not a proven fact, that our Earth is an aware, self-regulating entity (giant cell?) that adjusts to changes and

GAMMA

Rate of option delta changes to the price change of an underlying asset. Positive gamma means the trading position has positive convexity. Positive convexity means an increase in the value of the

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