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Fails |
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Short
for failed deliveries. Failure to deliver an asset on the settlement date.
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Fair market value |
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The
price a willing buyer would pay a willing seller if neither was under any
compulsion to buy or sell. The standard at which property is valued for
a deemed disposition. |
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Far date |
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A
term use to describe one side of a swap transaction. The far date is always
the contract with the longest maturity date or expiration date. |
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Fast market |
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Term
used to define unusually hectic market conditions. |
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FCM |
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See
Futures commission merchant. |
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Fence |
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See
Collar. |
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Fiduciary |
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An
individual or institution occupying a position of trust. An executor, administrator
or trustee. Hence, "fiduciary" duties. |
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Fill-or-kill (FOK) order (USA) |
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A type of order which requires that if the order cannot be completely executed,
it is to be cancelled immediately. |
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Fill-or-kill (FOK) order (Canadian stock exchanges) |
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A type of order that stipulates that as soon as a portion of the order which
can be traded immediately is completed, any remaining portion of the order
not filled is cancelled. |
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Fill-and-kill (FAK) order (Bourse de Montréal Inc.)
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A type of order that stipulates that as soon as a portion of the order which
can be traded immediately is completed, any remaining portion of the order
not filled is cancelled. |
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Finance or acceptance company paper |
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Short-term
negotiable debt securities similar to commercial paper, but issued by finance
companies. |
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Fiscal policy |
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The
policy pursued by government to manage the economy through its spending
and taxation powers. |
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Fixed assets |
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Assets
of a long-term nature, such as land and buildings. |
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Fixed liability |
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Any
corporate liability that will not mature within the following fiscal period.
For example, long-term mortgages or outstanding bonds. |
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Fixed income assets |
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Assets
such as bonds, debentures, mortgage-backed securities and preferred shares
that generate a predictable amount of interest or dividend income over the
life of the investment. |
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Fixed rate |
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A
term used to describe how an interest payment will be constant in a particular
contract versus variable such as a floating rate. |
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Flat-top butterfly |
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See Condor spread. |
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Flex options |
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Exchange-traded equity or index options, where the investor can specify,
within certain limits, the terms of the options, such as exercise price,
expiration date, exercise type, and settlement calculation. |
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Floating rate |
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A term used to describe how an interest payment will be variable in a particular
contract versus constant such as a fixed rate. |
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Forward |
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A forward contract is similar to a futures contract but trades on an OTC
basis. The seller agrees to deliver a specified commodity or financial instrument
at a specified price some time in the future. The terms of a forward contract
are not standardized but are negociated at the time of the trade. There
may be no secondary market. |
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Forward rate agreement (FRA) |
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Interest rate contract in which the rate to be paid or received for a set
period of time, beginning at some time in the future, is determined at contract
initiation. |
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Freeze |
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An interruption in trading on a security, triggered, when an order violates
parameters set by Market Surveillance for that particular security. |
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Front-end load |
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A sales charge levied immediately on the purchase of mutual fund units. |
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Fundamental analysis |
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An analysis of securities based on the fundamental facts about a company,
such as sales, earnings and dividend prospects. |
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Funded debt |
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All outstanding bonds, debentures, notes and similar debt instruments of
a company not due for at least one year. |
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Futures |
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A contract in which the buyer is obliged to take delivery of a specific
quantity of an underlying asset at a specific date, at the price determined
at the time of the transaction. |
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Futures commission merchant (FCM) |
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An individual or organization that solicits or accepts orders to buy or
sell futures contracts or options on futures and accepts money or other
assets from customers to support such orders. Also referred to as "commission
house" or "wire house". |
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