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Personal Finance Glossary



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F

Face Value
"Face value" is the nominal, or stated, value of a stock or bond. For bonds, face value is also... more
 
Face-Amount Certificate
A "face-amount certificate" is a type of debt instrument (like a bond). A face-amount certificate... more
 
Factor
"Factor" often refers to a financial institution that will purchase a company's accounts... more
 
FAFSA
The "Free Application for Federal Student Aid" or "FAFSA," is the form that student borrowers fill... more
 
Fair Credit Reporting Act
The "Fair Credit Reporting Act" or "FCRA" is a federal law that protects the consumers' rights... more
 
Fair Housing Act
The "Fair Housing Act" or "FHA" is a federal law promoting fair housing throughout the United... more
 
Fair Market Value
"Fair market value" is an appraisal term for the "price" of a property that a seller should be able... more
 
Fairness Opinion
A "fairness opinion" is an investment banker's professional opinion as to the "fairness" of a... more
 
Family Limited Partnership
A "family limited partnership" or "FLP" is a type of limited partnership in which family members... more
 
Family of Funds
"Family of funds" is a group of mutual funds, each having a different objective such as one may be... more
 
Fannie Mae - Federal National Mortgage Association
"Fannie Mae" is a government sponsored entity that buys mortgages from lenders, bundles them into... more
 
FCRA
The "Fair Credit Reporting Act" or "FCRA" is a federal law that protects the consumers' rights... more
 
FDIC
The "Federal Deposit Insurance Corporation" or "FDIC" is a government corporation that insures... more
 
Federal Deficit
The "federal deficit" is the amount of money within the annual budget that the federal government... more
 
Federal Deposit Insurance Corporation
The "Federal Deposit Insurance Corporation" or "FDIC" is a government corporation that insures... more
 
Federal Gift Tax
The "federal gift tax" is the tax imposed by the federal government on the person making a gift,... more
 
Federal Home Loan Bank System
The "Federal Home Loan Bank System" or "FHLB" is a corporation owned by thousands of member... more
 
Federal Insurance Contributions Act
The "Federal Insurance Contributions Act" or "FICA" is a U.S. federal law that established the... more
 
Federal Reserve Board
The "Federal Reserve Board" is the governing body of the Federal Reserve System, which is... more
 
Fee Simple
"Fee simple" ownership of real estate is the most common form of real property ownership in the... more
 
FHA
The "Fair Housing Act" or "FHA" is a federal law promoting fair housing throughout the United... more
 
FHLB
The "Federal Home Loan Bank System" or "FHLB" is a corporation owned by thousands of member... more
 
FHLMC
The "Federal Home Loan Mortgage Corporation" or "FHLMC", also known as Freddie Mac, is a... more
 
FICA
The "Federal Insurance Contributions Act" or "FICA" is a U.S. law that established the payroll tax... more
 
FICO Score
The "FICO score" is also known as an individual's credit score. FICO is an acronym for Fair... more
 
Fiduciary
A "fiduciary" is a person, company, or an association that holds or manages assets for a another... more
 
FIFO
"First In, First Out" or "FIFO" is an accounting method for inventory based on the premise that the... more
 
Filing Status
"Filing status" refers to certain tax categories used in connection with filing tax returns.... more
 
Final Prospectus
A "final prospectus" is a legal document that describes the offering of securities by a company,... more
 
Finance Charge
"Finance charge" is the total cost of credit a customer must pay on a consumer loan, including... more
 
Financial Accounting
"Financial accounting" is the preparation of financial statements by the reporting and recording of... more
 
Financial Accounting Standards Board
The "Financial Accounting Standards Board" or "FASB" is the entity composed of independent members... more
 
Financial Advisor
A "financial advisor" is someone who is proficient in the financial field and who can offer... more
 
Financial Asset
A "financial asset" is any identifiable asset such as equipment, land, or buildings that can be... more
 
Financial Institution
A "financial institution" is an organization that receives funds through deposits from corporations... more
 
Financial Instrument
"Financial instruments" are papers or documents, some in physical form and others in electronic... more
 
Financial Planner
A "financial planner" is a trained professional who offers advice on how to plan out personal or... more
 
Financial Statements
"Financial statements" typically refer to a company's profit and loss statement, balance sheet,... more
 
Firm Commitment Underwriting
A "firm commitment underwriting" is typically an arrangement in which an underwriter agrees to sell... more
 
First In, First Out
"First In, First Out" or "FIFO" is an accounting method for inventory based on the premise that the... more
 
First Mortgage
"First mortgage" is a loan secured by a first lien on real property, given the lien holder priority... more
 
Fiscal Policy
"Fiscal policy" refers to the federal tax and spending policies set by Congress and/or the... more
 
Fiscal Year
"Fiscal year" is a twelve month accounting statement for a business showing the financial results... more
 
Fiscal Year-End
"Fiscal year-end" is the last date of which a business' fiscal year ends. The accounting period... more
 
Fixed Rate Loan
A "fixed rate loan" is a loan whose interest rate is fixed throughout the term of the loan.... more
 
Fixed Rate Mortgage
A "fixed rate mortgage" is a real estate mortgage loan whose interest rate is fixed throughout the... more
 
Flat Tax
A "flat tax" is a system that taxes everyone's income at the same tax rate no matter how large... more
 
Flat Yield Curve
A "flat yield curve" is the graphical representation of a situation in which there is little or no... more
 
Flipping
"Flipping" is when shares of stock are purchased in an initial public offering (IPO) and then are... more
 
Float
The "float" is the number of shares of a company that are publicly owned and tradable. Large... more
 
Floating Interest Rate
"Floating interest rate" is a rate that goes up and down with the condition of the general market... more
 
Floating-Rate Note
A "floating-rate note" is a debt security the interest rate of which is periodically adjusted. For... more
 
Flood Insurance
"Flood insurance" is insurance that is designed to protect a homeowner against losses caused by a... more
 
FNMA
"FNMA" or "Fannie Mae" is a government sponsored entity that buys mortgages from lenders, bundles... more
 
Follow-On Offering
A "follow-on offering" is a type of secondary offering of a stock in which a company sells... more
 
Forbearance
"Forbearance" is a postponement of monthly payments for a limited amount of time in which a... more
 
Force Majeure
"Force majeure" is a contract clause that excuses one or both parties from fulfilling all or part... more
 
Foreclosure
"Foreclosure" is the process by which a holder of a mortgage or deed of trust forces a sale of the... more
 
Foreign Currency
"Foreign currency" is money of another... more
 
Form 10-K
"Form 10-K" is the SEC form required to be filed by publicly held companies that provide annual... more
 
Form 10-Q
"Form 10-Q" is the form required by the SEC to be filed by public companies on a quarterly basis,... more
 
Form 1099-DIV
"Form 1099-DIV" is the IRS form usually sent by financial institutions to investors and to the IRS... more
 
Form 1099-Q
"Form 1099-Q" is an IRS form used to report disbursements from a Coverdell Education Savings... more
 
Form 1099-R
"Form 1099-R" is a form issued by the Internal Revenue Service, used to report individual... more
 
Form 3
"Form 3" is the form required by the SEC from all holders of 10% or more of a public company's... more
 
Form 4
"Form 4" is the form required by the SEC for a change in the holdings of an individual owning 10%... more
 
Form 5
"Form 5" is an SEC form that must be filed annually by directors and officers of a public company,... more
 
Form 8-K
"Form 8-K" is an SEC filing that a publicly-traded company must file to report any material changes... more
 
Forward Contract
A "forward contract" is a contract in which a seller and buyer will privately agree upon delivery... more
 
Fractional Share
A "fractional share" is a stock that is less than one full share. This usually happens when an... more
 
Franchise
A "franchise" is a business that has been established or operates under the authorization to sell... more
 
Franchise Agreement
A "franchise agreement" is a contract that is between a franchisor and a franchisee. This contract... more
 
Fraudster
"Fraudster" refers to someone who commits fraud of some kind, such as Internet fraud or securities... more
 
Fraudulent Conveyance
The term "fraudulent conveyance" (or fraudulent transfer) refers to the transfer of valuable assets... more
 
Freddie Mac - Federal Home Loan Mortgage Corp
The "Federal Home Loan Mortgage Corporation" or "FHLMC", also known as Freddie Mac, is a... more
 
Free Application for Federal Student Aid
The "Free Application for Federal Student Aid" or "FAFSA," is the form that student borrowers must... more
 
Front Office
In a financial services company, the front office typically includes corporate finance and sales... more
 
Front-End Load
"Front-end load" is one of three types of sales charges imposed by mutual funds that charge fees:... more
 
Front-End Ratio
A "front-end ratio" is the percentage of a person's monthly income allotted to mortgage... more
 
Full Service Broker
A "full service broker" is a securities broker who provides clients a broad selection of fincial... more
 
Fully Subscribed
An offering of shares of securities is said to be "fully subscribed" when all the shares have been... more
 
Fund Manager
A "fund manager" is the person who oversees the investment money invested in a specific mutual... more
 
Fund of Funds
A "fund of funds" is a mutual fund, hedge fund, or other investment fund that invests in other... more
 
Futures
"Futures" is a term used to designate contracts covering the sale of financial instruments or... more
 
Futures Contract
A "futures contract" is a legally binding agreement to buy or sell a commodity or financial... more
 

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