Glossary of Stock Market

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F

FCCB - Foreign Currency Convertible Bond
A type of convertible bond issued in a currency different than the issuer's domestic currency.

FDI - Foreign Direct Investment
An investment abroad, usually where the company being invested in is controlled by the foreign corporation.

FII - Foreign Institutional Investor
An investor or investment fund that is from or registered in a country outside of the one in which it is currently investing.

Face Value
The nominal value of a security stated by the issuer. For shares, it is the original cost of the share shown on the certificate.

Financial Porn
A slang term used to describe sensationalist reports of financial news and products causing irrational buying that can be detrimental to investors' financial health.

Fiscal Year
Any 12-month period that a company uses for accounting purposes.

Flat Rate of Interest
Percentage representation of the amount of annual interest on the total loan amount.

Float
The number of shares outstanding minus what is owned by insiders and what the company is holding back (treasury stock.)

Fully Paid Shares
Shares issued in which no more money is required to be paid to the company by shareholders on the value of the shares.

Fund Of Funds
A mutual fund that invests in other mutual funds.

Fundamental Analysis
Fundamental analysis is to produce a value that an investor can compare with the security's current price in hopes of figuring out what sort of position to take on that stock.

Futures Contract
An agreement between parties for specified asses for performance on a fixed day in future. A futures contract is a legally binding agreement to buy or sell commodities to buy or sell commodities or financial securities at fixed time in the future at a price agreed upon today. The delivery period, quantity and quality of a futures contract is standardized and specified while the price is set at the time a contract is opened and is negotiated between buyers and sellers. Futures are traded either electronically or via open outcry on a traded either electronically or via open outcry on a trading floor on the Exchange offering the particular contract.

Futures
A financial contract obligating the buyer to purchase an asset (or a seller to sell an asset) at a predetermined date and price.

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