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F


Face amount
Par value (principal or maturity value) of a security appearing on the face of the instrument


Federal funds rate

The interest rate charged by banks on loans of their excess reserve funds to other banks. The Federal Reserve's ability to add or withdraw reserves from the banking system gives it close control over this rate.


Fiscal Year

A 365-day accounting period for which a company or mutual fund prepares financial statements.


Fixed Asset

Tangible property used in the operations of a business, but not expected to be consumed or converted into cash in the ordinary course of events.


Floating-rate bond

A bond for which the interest rate is adjusted periodically according to a predetermined formula, usually linked to an index.


Floor
The lower limit for the interest rate on a floating-rate bond.


Forward Contract

Purchase or sale of a specific quantity of a commodity, government security, foreign currency, or other financial instrument at the current or spot rate, with delivery and settlement at a specified future date.


Front Running

Practice whereby a securities or commodities trader takes a position to capitalize on advance knowledge of a large upcoming transaction expected to influence the market price.


Futures Contract

An agreement to buy or sell a specific amount of a commodity or financial instrument at a particular price on a stipulated future date.

G


General obligation bond

A municipal bond secured by the pledge of the issuer's full faith, credit and taxing power.


Global Depository Receipt (GDR)

Receipt of shares in a foreign-based corporation traded in capital markets around the world. The advantage to the issuing company is that they can raise capital in many markets, as opposed to just their home market.

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Growth Stock
Stock of a corporation that has exhibited faster-than-average gains in earnings over the last few years and is expected to continue to show high levels of profit growth.