|
|
| A
B C
D E
F G
H-I J-K-L
M N O
P Q-R S
T U-V-W-X-Y-Z |
Face value
|
The face value of a bond
is the value the bond is worth at maturity.
A newly issued bond usually sells at face
value. Between issue date and maturity date,
the market value of the bond will fluctuate
depending on current interest rates, and the bond
will trade at a premium
or a discount.
|
Federal funds
rate
|
The federal funds rate is a target interest rate set by
the Federal Open Market Committee (FOMC), as part of the Federal
Reserve Board monetary policy. It is the interest rate at which
financial institutions lend balances at the Federal Reserve to other
financial institutions overnight (the overnight rate).
For current and historic target federal funds rates, see the Federal
Reserve Board Open Market Operations page.
See also discount rate. |
Financial statements
|
These usually consist of a
Balance Sheet, Income Statement,
Cashflow
Statement, and Notes to the
Financial Statements. Most public corporations publish their
financial statements in an Annual Report which is sent to
shareholders. They also usually publish quarterly
financial statements, which may or may not be sent out to
shareholders. Most public corporations also have their financial
statements available on their corporate web sites, or will mail copies
to interest parties.
|
Fiscal period/fiscal year
|
Many businesses prepare their accounting records on a
calendar year basis, with December 31 as their year-end date.
Their fiscal year is the same as the calendar year. Some
businesses prefer to have their year-end date coincide with a slow
period in their business, so they may choose another date as their
year-end. If they choose March 31, then their fiscal year, or
accounting year, is April 1 to March 31.
A fiscal period is normally 12 months, but may be less than 12
months when a business starts up.
|
Free cashflow
|
Free cashflow is calculated as
EBITDA (earnings before interest, taxes, depreciation and
amortization) minus taxes paid during the year, minus capital
expenditures, and plus or minus changes in working
capital. See also cashflow and
operating
cashflow.
|
Front-end
load fund
|
This type of mutual
fund charges a sales commission, often in the range of 2% to 5%,
when the mutual funds are purchased. Also, as with all mutual
funds, trailer fees are paid annually by the
fund to the advisor, broker or dealer where you hold your funds.
See also no-load fund, and back-end
load fund.
|
Fundamental
analysis
|
Analysis of a company and its
financial strength, in order to determine its
value. Fundamental analysis is used by value
investors. |
Futures
|
Contract to buy or sell a product
at a fixed price on a specified date, usually
traded on futures exchanges. |
| [back to top]
Revised: February 20, 2009
|
