Datasets:
sohomghosh
/
FinRAD_Financial_Readability_Assessment_Dataset

Dataset card Data Studio Files Community
1
terms
stringlengths
1
156
definitions
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3
4.2k
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15 values
assigned_readability
int64
0
1
flesch_reading_ease
float64
-301.79
121
flesch_kincaid_grade
float64
-3.5
55.6
smog_index
float64
0
26.5
coleman_liau_index
float64
-33.81
51.4
automated_readability_index
float64
-6.9
65
dale_chall_readability_score
float64
0.1
35.3
linsear_write_formula
float64
-0.5
73
gunning_fog
float64
0.4
56
FIRM PRICE
See FIRM QUOTE.
palgrave
0
119.19
-2.7
0
-2.38
0.5
14.31
0.5
1.2
FIRM QUOTE
A BID and/or OFFER supplied by a DEALER or MARKET MAKER to a BROKER or client that can be regarded as reliable and action- able. Also known as FIRM PRICE. See also INDICATIVE QUOTE, QUOTED SPREAD.
palgrave
0
67.76
6.8
8.8
6.83
5.6
9.5
6
8.13
FIRM VALUE
The value of a firm, computed as EQUITY value plus the MARKET VALUE of DEBT.
palgrave
0
64.71
8
0
5.33
5.5
9.64
8.5
11.33
FIRST CALL DATE
The first date on which an ISSUER can call back a CALLABLE BOND outstanding in the marketplace; a typical bond might have several sequential call opportunities appearing after the first date. The time period between the issuance of the security and the first call date is regarded as HARD CALL PROTECTION and protects the INVESTOR against REINVESTMENT RISK. See also YIELD TO CALL.
palgrave
0
58.62
10.3
14.6
11.72
12.9
9.44
14.5
15.38
FIRST CLASS PAPER
BILLS OF EXCHANGE or other MONEY MARKET SECURITIES with the highest CREDIT RATING, typically backed by a top-rated BANK or DISCOUNT HOUSE. Also known as A-1 PAPER, FINE PAPER.
palgrave
0
56.76
8.9
0
10.32
9.7
9.8
7.25
8.56
FIRST DOLLAR COVERAGE
An INSURANCE CONTRACT that is not sub- ject to a DEDUCTIBLE or which is made equivalent to a “no deductible” pol- icy through an EXCESS INSURANCE clause. Under first dollar coverage the INSURER, rather than the INSURED, occupies the FIRST LOSS position.
palgrave
0
58.62
10.3
0
11.14
12.9
9.94
14
14.11
FIRST IN FIRST OUT (FIFO)
An INVENTORY management and ACCOUNTING methodology where the first raw materials or work-in-progress inventory acquired for production of final goods are used first. Costs and inventory valuation are thus based on the earliest, and then latest, items in inventory, regardless of whether this corresponds to the actual physical move- ment in the inventory. See also LAST IN FIRST OUT (LIFO).
palgrave
0
34.26
13.5
16.7
13.63
14.6
10.68
15.666667
16
FIRST LOSS
In an INSURANCE or REINSURANCE arrangement, the pos- ition that absorbs the initial losses arising from damage or destruction. The first loss position can be created through a DEDUCTIBLE where the INSURED bears the losses up to the ATTACHMENT point. If no DEDUCTIBLE exists, the INSURER bears the first loss position up to the POLICY CAP, or the point at which REINSURANCE attaches. See also EXCESS LAYER.
palgrave
0
54.42
9.8
13
11.08
10.8
9.65
11.375
12.69
FIRST LOSS PIECE
See RESIDUAL SECURITY.
palgrave
0
-24.64
17.4
0
11.15
11.5
14.31
2.5
27.87
FIRST LOSS POLICY
A form of INSURANCE POLICY that places a CAP on the total value being insured, even if this is less than the appraised value of the item or property being insured.
palgrave
0
48.47
14.2
0
7.85
14.3
9.25
18.5
16.27
FIRST MORTGAGE DEBENTURE
In the United Kingdom, a DEBENTURE that is secured by a first priority FIXED CHARGE over a specific property.
palgrave
0
52.19
10.7
0
9.86
10.6
9.57
12.5
13.92
FIRST NOTICE DAY
In the EXCHANGE-TRADED DERIVATIVE market, the day on which the seller of a CONTRACT advises the buyer of its intent to deliver.
palgrave
0
40.69
13.1
0
9.86
12.3
10.47
15
14.25
FISCAL AGENT
An AGENT in a BOND transaction that arranges for COUPONS to be paid to INVESTORS.
palgrave
0
81.63
5.6
0
7.65
7.1
10.7
7.5
8.67
FISCAL YEAR
A 12-month period that is used to compute income or REVENUES for TAX and other financial reporting purposes, and which may vary by country (e.g., in the United Kingdom, Canada, and Japan the fiscal year runs from April 1 to March 31, in the United States October 1 to September 30, and so forth). Also known as FINANCIAL YEAR, TAX YEAR.
palgrave
0
57.44
12.8
0
8.25
15.1
9.55
18.75
14.82
FISHER EFFECT
In MACROECONOMICS, a theory put forth by economist Irving Fisher indicating that the real INTEREST RATE is equal to the NOM- INAL INTEREST RATE less expected INFLATION, implying that for a constant real rate, the nominal rate is a direct function of the expected inflation rate. Using CONTINUOUS COMPOUNDING, the relationship is given as:where rn is the nominal interest rate, infl is the expected inflation rate, e is the exponential constant. Also known as FISHER PARITY.
palgrave
0
28.88
15.5
18.2
12.54
15.9
9.88
19.666667
17.49
FISHER PARITY
See FISHER EFFECT.
palgrave
0
59.97
5.6
0
3.43
5.2
14.31
0.5
1.2
FIX PROTOCOL
See FINANCIAL INFORMATION EXCHANGE PROTOCOL
palgrave
0
-18.21
17
0
23.52
17.8
13.36
4.5
26
FIXED ANNUITY
An ANNUITY where PREMIUMS received from the INVESTOR grow at a fixed rate (known as the credited rate) specified by the INSURER. The growing amount accrues and is added to the cash value of the annuity, which remains untaxed as long as it remains in its annuitizedform. The most common types of fixed annuities include the flexible pre- mium deferred annuity (with flexible timing and amount of contribution by the investor) and the single premium deferred annuity (with set timing and amounts). See also GUARANTEED INVESTMENT CONTRACT, VARIABLE ANNUITY.
palgrave
0
48.84
12
14.9
12.54
14.4
10.07
15.375
14.31
FIXED CAPITAL
The CAPITAL of a company that is specifically used to sup- port FIXED ASSETS.
palgrave
0
57.27
8.8
0
7.82
7.1
9.97
9
8.46
FIXED CHARGE
A CHARGE on the specific ASSETS of a company in favor of the chargee (typically a lending BANK), which prohibits the company from disposing of the assets without prior consent. Fixed charge CREDITORS have a SENIOR, secured ranking in the event of BANKRUPTCY, and are repaid before outstanding PENSION and employee compensation obligations. See alsoFLOATING CHARGE.
palgrave
0
44.03
11.8
14.6
13.92
13.9
11.05
13.333333
14.62
FIXED CHARGE COVERAGE
A measure of a company’s ability to repay its PRINCIPAL AMORTIZATION, INTEREST, LEASE payments, and other fixed charges with pretax EARNINGS. Fixed charge coverage is computed via:where EBFC equals earnings before fixed charges, Tax is income tax paid, and FC is fixed charges.The larger the ratio, the greater the company’s ability to cover its obliga- tions. See also DEBT SERVICE COVERAGE, INTEREST COVERAGE, TIMES INTEREST EARNED.
palgrave
0
40.69
13.1
15
13.92
15.9
10.71
15.333333
13.04
FIXED COST
An EXPENSE that does not change in proportion to a com- pany’s output, but which remains constant regardless of activity (e.g., rent, salaries). Fixed cost is one of two elements, along with VARIABLE COST, which comprise TOTAL COSTS.
palgrave
0
69.11
8.3
0
10.79
12.4
12.06
11.5
11.81
FIXED EXCHANGE RATE
An EXCHANGE RATE that is set by a country’s CENTRAL BANK or monetary authority based on its MACROECONOMIC policies and its intervention in the FOREIGN EXCHANGE markets. A fixed exchange rate is not freely determined by market forces.
palgrave
0
52.19
10.7
0
12.36
12.4
10.4
12
12.86
FIXED-FIXED
A CURRENCY SWAP where each LEG of the swap car- ries a FIXED RATE. See also FIXED-FLOATING, FLOATING-FLOATING.
palgrave
0
79.26
4.4
0
8.96
7.4
8.47
5
5.82
FIXED-FLOATING
A CURRENCY SWAP or INTEREST RATE SWAP where one LEG has a FIXED RATE and the second leg a FLOATING RATE. See also FIXED-FIXED, FLOATING-FLOATING.
palgrave
0
75.71
5.8
0
8.74
7.6
7.41
6.75
8.2
FIXED INCOME
The general class of marketable DEBT, or any SECURITY that pays an implicit or explicit INTEREST RATE RETURN to INVESTORS on a DISCOUNT or COUPON-bearing basis, including BILLS, NOTES, and BONDS. Also known as FIXED INTEREST.
palgrave
0
53.21
10.3
0
11.89
12.4
11.99
13
12.76
FIXED INTEREST
See FIXED INCOME.RATE MORTGAGE.
palgrave
0
33.58
9.6
0
14.5
13.5
11.73
2
1.6
FIXED PREMIUM
PREMIUM payable by an INSURED for an INSURANCE CONTRACT that remains constant during the payment period. See alsoFLEXIBLE PREMIUM.
palgrave
0
36.45
10.5
0
14.53
11.1
11.59
6.25
12.22
FIXED-PRICE REOFFER
An agreement among SYNDICATE members not to resell a NEW ISSUE of NOTES or BONDS at a price that is lower than the initial offer until issuance is complete and the syndicate has been broken.
palgrave
0
52.87
14.6
0
9.01
17.1
10.34
19.5
15.14
FIXED-PRICE TENDER
A form of TENDER where a fixed price is set for an ASSET or SECURITY, allowing buyers and sellers to BID or OFFER any quantity they like.
palgrave
0
60.99
11.5
0
6.45
11.4
9.65
16.5
15.24
FIXED RATE
An INTEREST RATE on a financial contract, ASSET, or LIABILITY that remains constant during the life of the contract. Also known as FIXED INTEREST RATE. See also FLOATING RATE.
palgrave
0
53.17
8.3
9.7
9.66
7.3
9.02
5.166667
8.02
FIXED-RATE BOND
A DEBT obligation, such as a domestic BOND, EUROBOND, or GLOBAL BOND, which pays a fixed COUPON on a monthly, quarterly, semiannual, or annual basis. Fixed-rate bonds, which carry MATURITIES ranging from 1 to 30 years, can be issued directly or from MEDIUM-TERM NOTE or EURO MEDIUM-TERM NOTE programs, and may be sold as publicly placed REGISTERED SECURITIES, BEARER SECURITIES, or PRIVATE PLACEMENTS. See also FLOATING RATE NOTE.
palgrave
0
48.43
12.1
13.6
12.42
15.1
12.43
14.666667
14.37
FIXED STRIKE LADDER OPTION
An OVER-THE-COUNTER COMPLEX OPTION that allows the buyer to lock in any accumulated gains prior toexpiry as the price of the UNDERLYING exceeds prespecified market levels (or “rungs”); gains are not lost if the market subsequently retraces. This version of the option compares the terminal price and ladder rungs against a predefined STRIKE PRICE and allocates a gain to the larger of the two. See also CLIQUETOPTION, FLOATING STRIKE LADDER OPTION, LADDER OPTION, SHOUT OPTION.MINIMUM.
palgrave
0
37.64
14.2
14.1
13.87
16.9
10.14
16.166667
15.33
FIXED STRIKE SHOUT OPTION
An OVER-THE-COUNTER COMPLEX OPTION that allows the buyer to lock in any accumulated gains when a “shout” is declared (i.e., the buyer formally declares its intention to lock in); gains are not lost if the market subsequently retraces. This version of the option com- pares the terminal price and shout level against a predefined STRIKE PRICE and allocates a gain to the larger of the two. See also CLIQUET OPTION, FLOATING STRIKE SHOUT OPTION, LADDER OPTION, SHOUT OPTION.
palgrave
0
53.55
12.3
12.5
11.26
15.4
9.58
15.666667
13.99
FIXED TRIGGER
A TRIGGER in an INSURANCE CONTRACT that indicates whether or not an event has occurred; a fixed trigger does not typically impact the payoff value of the contract, it simply indicates whether a SETTLEMENT will occur.
palgrave
0
34.94
17.3
0
11.96
20.3
11.12
23
17.73
FIXING
The process of setting or resetting a specific INTEREST RATE on a LOAN or DERIVATIVE. Fixing is done in relation to the specific mechanics of a transaction, and is defined by market, rate, time, and other particulars.
palgrave
0
44.24
11.7
0
10.15
10.9
9.25
13.75
16.05
FLAG
A TECHNICAL ANALYSIS pattern where a SECURITY or INDEX price fluctuates in a narrow, and relatively stable, range (the body of the flag) pre- ceded and/or followed by large upward or downward moves (the flagpole).See also PENNANT.
palgrave
0
25.46
18.9
0
12.14
21.8
11.87
24.5
20.21
FLASH
See PRICE.
palgrave
0
77.91
2.9
0
-7.41
0.8
0.1
0
0.8
FLASH PRICE
The current price of a SECURITY; during very heavy volume sessions on an EXCHANGE, quote tickers become delayed with “stale” price information, so flash prices periodically appear to signal the current value. Also known as FLASH.
palgrave
0
44.75
11.5
0
12.87
13
9.79
10.5
10.53
FLAT BOND
A BOND that is bought or sold without ACCRUED INTEREST, either because the SETTLEMENT date is equal to the payment date, no COUPON is due, or the ISSUER is unable to pay a current coupon (e.g., the SECURITY is an INCOME BOND).
palgrave
0
45.77
17.3
0
7.91
20.3
9.48
24
18.7
FLAT TAX
See PROPORTIONAL TAX.
palgrave
0
34.59
9.2
0
9.23
9.9
9.05
1.5
14.53
FLAT YIELD
The current YIELD of a CONVERTIBLE BOND, typically com- puted via:where C is the COUPON of the issue (in percentage terms) and PCB is the cur- rent price of the convertible bond. Also known as RUNNING YIELD. See alsoEQUIVALENT BREAKEVEN, SIMPLE BREAKEVEN, YIELD ADVANTAGE.
palgrave
0
65.01
7.8
11.2
10.84
10.4
10.83
8.333333
10.43
FLAT YIELD CURVE
A TERM STRUCTURE where short-term INTEREST RATES are equal to long-term interest rates. See also KINKED YIELD CURVE, NEGATIVE YIELD CURVE, POSITIVE YIELD CURVE, YIELD CURVE.
palgrave
0
75.2
6
0
13.27
11.9
8.53
7.5
9.82
FLATTENING
(1) The act of neutralizing a LONG POSITION or a SHORT POSITION, either by selling or covering, or by establishing an equal and oppos- ite HEDGE. A position that has been flattened is no longer exposed to market movements. (2) A reshaping of the YIELD CURVE so that short-term and long- term INTEREST RATES appear approximately equal.
palgrave
0
51.01
13.2
0
10.1
15.8
10.31
18.75
16.31
FLEX OPTION
See FLEXIBLE EXCHANGE OPTION.
palgrave
0
33.58
9.6
0
13.05
11.2
11.73
2
11.6
FLEXIBLE DRAWDOWN
A DRAWDOWN under a REVOLVING CREDIT FACILITY or other financing arrangement that occurs in stages, often to cor- respond with specific CASH FLOW or INVESTMENT requirements of theBORROWER.
palgrave
0
17.68
17.8
0
15.55
19.5
12.92
22
22.63
FLEXIBLE PREMIUM
PREMIUM payable by an INSURED for an INSURANCE CONTRACT that may increase or decrease during the payment period. See alsoFIXED PREMIUM.
palgrave
0
52.36
8.6
0
12.44
9.6
10.92
6.25
9.91
FLIGHT TO QUALITY
A market action or event where INVESTORS liquidate risky or speculative SECURITIES holdings and deposit proceeds with BANKS or purchase GOVERNMENT BONDS or other “safe haven” ASSETS. Flight to quality may occur when financial markets start becoming volatile and ILLIQUID, economic conditions deteriorate, and/or systemic threats grow. See also CAPITAL FLIGHT.
palgrave
0
37.3
12.3
14.1
16.88
15.6
12.22
12.166667
13.07
FLIP IN PILL
A POISON PILL that allows existing SHAREHOLDERS of a company that is the subject of a TAKEOVER to buy new SHARES at a DISCOUNT; the pill increases DILUTION, and is thus intended to dissuade a potential acquirer from bidding for the company. See also FLIP OVER PILL.
palgrave
0
56.08
11.3
0
9.52
12.3
9.51
16.25
15.36
FLIP OVER PILL
A POISON PILL that allows existing SHAREHOLDERS of a company that is the subject of a TAKEOVER to buy the acquiring company’s SHARES at a sharp DISCOUNT if the transaction is completed; the pill is intended to dissuade an acquirer from bidding for the company. See also FLIP IN PILL.
palgrave
0
54.56
11.9
0
9.81
13.1
9.3
17.5
16.4
FLIPPER
An INVESTOR receiving an allocation in an INITIAL PUBLIC OFFERING, ADD-ON, or NEW ISSUE that sells the SECURITIES sev- eral hours or days after issuance to lock in a short-term capital gain. Also known as STAG.
palgrave
0
53.21
10.3
0
9.51
10.5
10.67
11.5
11.64
FLOAT
(1) The value of all cash balances that result from delays in SETTLEMENT and processing of CHECKS, DRAFTS, and other payments; col- lection float represents lost INTEREST to DEPOSITORS while payment float represents a gain to payers. (2) Funds established by an INSURER to pay for incurred losses under INSURANCE contracts. (3) The act of issuing new SECUR- ITIES in the PRIMARY MARKET.
palgrave
0
7.53
27.9
0
12.14
34.3
13.53
42.5
30.91
FLOATER
(1) In INSURANCE, an ENDORSEMENT that allows cover age of moveable property to be transferred with the property between locations. (2) See FLOATING RATE NOTE.
palgrave
0
46.1
13
0
12.48
16.3
11.19
17.5
16.4
FLOATING-FLOATING
A CURRENCY SWAP or INTEREST RATE SWAP where each LEG references a different FLOATING RATE, i.e., a BASIS SWAP. See also FIXED-FIXED, FIXED-FLOATING.
palgrave
0
59.8
7.8
0
11.06
10.1
9.7
7.25
9.82
FLOATING LIEN
See FLOATING CHARGE.
palgrave
0
93.81
0.9
0
7.32
8.3
9.05
0.5
1.2
FLOATING POLICY
(1) An INSURANCE POLICY that relates to movable personal property. (2) An insurance policy that is used to cover merchandise that is continuously changing, such as in maritime shipments of cargoes, orpersonal property which is substituted. Although the specific items being cov- ered change over time, the policy remains in force until it is cancelled. Also known as FLOATING INSURANCE POLICY.
palgrave
0
33.95
13.6
15.9
13.23
14.5
11.11
15.166667
14.02
FLOATING RATE
An INTEREST RATE on a financial CONTRACT, ASSET, or LIABILITY that changes on a periodic basis, based on the specific rate bench- mark that serves as a reference. Also known as FLOATING INTEREST RATE. See also FIXED RATE.
palgrave
0
58.58
8.2
11.9
8.86
7.7
10.08
7.666667
11.4
FLOATING RATE LOAN
A LOAN where the INTEREST paid by the BOR- ROWER is based on a FLOATING RATE BENCHMARK, such as LIBOR orEURIBOR.
palgrave
0
75.54
7.9
0
7.31
9.7
10.69
11.5
10.3
FLOATING RATE SECURITY
Any SECURITY with a COUPON that adjusts on a periodic basis with reference to a FLOATING RATE BENCHMARK. Common floating rate securities include FLOATING RATE CERTIFICATES OF DEPOSIT, FLOATING RATE NOTES, and VARIABLE RATE NOTES. Also known as VARIABLE RATE SECURITY.that creates the greatest economic profit. This version of the option carries no preset STRIKE PRICE, it simply compares the terminal price against the lowest buying price (for CALL OPTIONS) or highest selling price (for PUT OPTIONS). See also LOOKBACK OPTION.The payoff to the purchaser of a cap on each settlement date is given as:N∗ ( f − rref ) ∗ (n / d )where N is the notional, rref is the value of the reference rate at the settlement date, f is the floor strike, n is the number of days in the settlement period, d is the number days in the year.The floor provides no payoff to the purchaser if the reference rate is higher than the floor strike for any individual settlement period. (1) See also CAP,CAPTION, FLOORTION.
palgrave
0
37.37
16.4
15.1
10.75
18.5
9.72
12.2
16.06
FLOOR BROKER
A BROKER that fulfills the BROKERAGE role on the FLOOR of an EXCHANGE. See also FLOOR TRADER.
palgrave
0
79.77
4.2
0
6.23
4.2
8.7
3.75
5.75
FLOOR TRADER
A TRADER operating on the FLOOR of an EXCHANGE, EXECUTING relevant ORDERS for clients or for proprietary purposes. See alsoFLOOR BROKER.
palgrave
0
43.9
9.7
0
12.44
9.8
11.68
6.75
13.72
FLOORED FLOATING RATE NOTE
A FLOATING RATE NOTE (FRN) that features a COUPON that is floored at a lower STRIKE level. The INVESTOR therefore faces a minimum return on invested capital once rates fall below the strike. See also CAPPED FLOATING RATE NOTE.
palgrave
0
75.2
6
8.8
9.03
7.8
9.95
6.5
7.25
FLOORLET
One of a series of INTEREST RATE FLOORS comprising aFLOOR.
palgrave
0
69.79
6
0
9.08
6.6
12.03
6
12
FLOORTION
An OVER-THE-COUNTER OPTION on a FLOOR, granting the buyer the right to purchase a floor at a predetermined STRIKE PRICE. See alsoCAP, CAPTION.
palgrave
0
68.26
6.6
0
10.3
8.9
9.7
6.25
8.08
FLOTATION
The act of UNDERWRITING a NEW ISSUE of SECURITIES in the PRIMARY MARKET.
palgrave
0
41.36
10.7
0
8.16
6.8
9.14
8.5
14.43
FLOTATION COST
The EXPENSE a company bears in issuing new SECURITIES, typically computed as the difference between the price received by the company on an issue and the amount charged to INVESTORS (the UNDERWRITING SPREAD) plus out of pocket expenses. See also ALL-IN.
palgrave
0
42.21
12.5
0
12.01
13.3
9.66
14.75
14.05
FLOW
The total of customer ORDERS passing through a BROKER orDEALER.
palgrave
0
52.87
8.4
0
11.98
9
12.03
5
8
FNMA
See FEDERAL NATIONAL MORTGAGE ASSOCIATION.
palgrave
0
-35.13
19.4
0
21.2
16.9
16.52
4.5
26
FOB
See FREE ON BOARD.
palgrave
0
118.18
-2.3
0
-2.91
-1.9
0.2
1
1.6
FOF
See FUND OF FUNDS.
palgrave
0
118.18
-2.3
0
-2.91
-1.9
11.73
1
1.6
FOLLOWING THE FORTUNES
A clause in a REINSURANCE CONTRACT indicating that the REINSURER will be subject to the same finan- cial fate as the CEDING INSURER. The clause is designed to align the interests of the two parties.
palgrave
0
62.17
8.9
0
9.1
9.4
10.82
11.25
12.71
FOMC
See FEDERAL OPEN MARKETS COMMITTEE.
palgrave
0
32.56
10
0
13.08
10.3
13.36
3.5
18
FOOTNOTES
Additional, often detailed, explanation regarding the FINANCIAL STATEMENTS presented by a company. The explanatory mater- ial may related to the BALANCE SHEET, INCOME STATEMENT, and/or CASH FLOW STATEMENT, and may also include information on the operating envir- onment, litigation, and other RISK FACTORS.
palgrave
0
15.81
16.4
0
16.71
18.2
12.41
16.25
17.9
FOOTSIE
See FINANCIAL TIMES STOCK EXCHANGE (FTSE) 100.
palgrave
0
81.29
3.7
0
10.74
9
13.01
3.5
8.51
FORBEARANCE
(1) A decision by a BANK not to exercise its rights against a BORROWER in technical DEFAULT, in exchange for the borrower’s promise to begin making regular payments of PRINCIPAL and/or INTEREST. (2) SeeREGULATORY FORBEARANCE.
palgrave
0
19.03
19.3
0
13.65
21.8
12.14
27.5
25.43
FORCE MAJEURE
Literally “irresistible force”; in the corporate sector it is a financial event of such gravity (e.g., systemic dislocation, severe CREDIT RATING downgrade, BANKRUPTCY) that a relationship/transaction (such as a LOAN, NEW ISSUE, or CORPORATE FINANCE deal) may be cancelled or accelerated. See also MATERIAL ADVERSE CHANGE CLAUSE, VIS MAJOR.
palgrave
0
21.23
16.4
0
15.67
18.9
13.55
17.75
18.78
FORCED CONVERSION
An act taken by an ISSUER to require the conversion of a CONVERTIBLE BOND into SHARES, taken when the structure of the SECURITY allows for such a step, e.g., as in a MANDATORY CONVERTIBLE BOND.
palgrave
0
44.41
15.8
0
8.66
17.5
10.79
22.5
18.57
FORECLOSURE
A legal process where CREDITORS take possession of COLLATERAL securing a LOAN to a BORROWER in technical DEFAULT, gen- erally through the filing of a foreclosure suit. In some systems the ability to seize ASSETS and foreclose may be limited or delayed by AUTOMATIC STAY provisions.
palgrave
0
39.67
13.4
0
12.25
14.2
12.33
17.5
19.63
FOREIGN BILL
In the United Kingdom, a BILL OF EXCHANGE that is either drawn or payable outside the country.
palgrave
0
71.14
7.6
0
8.35
8.7
6.34
7.5
6.8
FOREIGN CORRUPT PRACTICES ACT
In the United States, legislation designed to ban corruption and bribery in US companies operating in foreign jurisdictions.
palgrave
0
27.83
13.9
0
16.24
15.5
12.42
14
18.31
FOREIGN CURRENCY BOND
(1) A BOND issued in a CURRENCY other than the ISSUER’s home currency. (2) See DUAL CURRENCY BOND.
palgrave
0
53.21
10.3
0
6.61
8.8
10.67
12
9.42
FOREIGN DIRECT INVESTMENT
A CAPITAL INVESTMENT by a company in one country in productive ASSETS located in another country, often through a controlled foreign affiliate. Also known as DIRECT INVESTMENT.
palgrave
0
32.39
12.1
0
13.68
11.5
8.4
10.75
11.33
FOREIGN EXCHANGE (FX)
A transaction that involves the exchange of two CURRENCIES. TRADING in foreign exchange is extremely active, with institu- tions regularly using SPOT and DERIVATIVE contracts to HEDGE, ARBITRAGE, or SPECULATE. See also RATE.
palgrave
0
43.39
9.9
12.5
14.07
11.5
11.84
7.166667
14.1
FOREIGN EXCHANGE (FX) BROKER
A BROKER that deals exclusively with clients in the FOREIGN EXCHANGE MARKET, generally across a broad range of currencies. Foreign exchange brokers are permitted to disclose their PRINCIPALS in certain markets, but not in all markets. See also COMMODITY BROKER, INTER-DEALER BROKER.
palgrave
0
40.35
11.1
11.9
14.43
12.6
10.35
8.333333
11.31
FOREIGN EXCHANGE (FX) DEALER
A DEALER who specializes in TRADING FOREIGN EXCHANGE, acting as PRINCIPAL by taking positions and filling ORDERS through the commitment of RISK CAPITAL.
palgrave
0
31.21
14.6
0
15.32
16.7
12.33
16.5
16.16
FOREIGN EXCHANGE (FX) MARKET
The general marketplace for buy- ing and selling of CURRENCIES. The FX market allows currency HEDGERS and SPECULATORS to establish prices and exchange both major and emer- ging market currencies. The market is global, operating 24 hours per day, and is conducted on an OVER-THE-COUNTER basis (though certain cur- rency DERIVATIVES are traded on EXCHANGES). See also BOND MARKET, COMMODITY MARKET, STOCK MARKET.
palgrave
0
46.98
10.6
13
13.11
12.4
11.19
10.875
12.03
FOREIGN EXCHANGE (FX) RATE
The price or value of a country’s CURRENCY. Market forces may set a foreign exchange rate (i.e., a market exchange rate) or a country’s CENTRAL BANK or monetary authority may con- trol or influence the rate (i.e., a MANAGED FOREIGN EXCHANGE RATE, or a semifloating rate determined through PEGGING or CRAWLING PEGS). Fixedforeign exchange rates may or may not reflect the perceived market value of the currency; where significant discrepancies arise a black market, based purely on market SUPPLY and DEMAND forces, may develop. Also known as RATE OF EXCHANGE.
palgrave
0
48.64
12.1
12.6
12.02
14.4
9.66
14
13.44
FOREIGN EXCHANGE (FX) RESERVES
ASSETS of a country, held with the CENTRAL BANK or monetary authority, which are used for currency man- agement and intervention. RESERVES generally comprise of GOLD and major RESERVE CURRENCIES, along with SPECIAL DRAWING RIGHTS held with the INTERNATIONAL MONETARY FUND.
palgrave
0
33.75
13.6
0
14.68
15.5
10.82
14.25
15.03
FOREIGN EXCHANGE (FX) RISK
The RISK of loss due to an adverse move in the direction of FOREIGN EXCHANGE RATES. Foreign exchange risk is a form of DIRECTIONAL RISK.CURRENCY SWAP.
palgrave
0
66.74
7.2
0
9.03
7.7
8.53
7
8.28
FORENSIC ACCOUNTING
A reconstruction of a company’s past financial transactions and records in order to fulfill a court-order or legal investigation.
palgrave
0
26.81
14.2
0
16.01
15.6
11.23
14.5
18.13
FORFAITING
A process where an exporter sells to a BANK or specialized financial institution a PORTFOLIO of discounted long-term ACCOUNTS RECEIVABLE or PROMISSORY NOTES (generally backed by GUARANTEES from the importer’s own BANK). See also FACTORING.
palgrave
0
45.25
11.3
0
15.54
14.9
12.17
13.75
18.43
FORM 3
In the United States, a document filed by a company with the SECURITIES AND EXCHANGE COMMISSION that details the amount of SHARES and OPTIONS held by the company’s officers and its largest shareholders.
palgrave
0
37.98
16.2
0
12.83
19.3
10.54
23.5
20.47
FORM F1
In the United States, a document filed by a company with the SECURITIES AND EXCHANGE COMMISSION indicating that a NEW ISSUE of SHARES is being sold to the public.
palgrave
0
42.04
14.6
0
9.7
14.8
8.89
19.5
17.12
FORTUITOUS EVENT
An unforeseen, unexpected, or accidental occurrence; such an event is a general characteristic of an INSURABLE RISK and must be present in order for an INSURED to make a CLAIM under an INSURANCE CONTRACT.
palgrave
0
28.51
17.7
0
11.79
19.3
10.9
25
21.84
FORWARD
A bilateral OVER-THE-COUNTER DERIVATIVE that permits the purchaser to buy, and the seller to sell, a reference ASSET at a predetermined future price and future date. Unlike a SWAP, a forward CONTRACT features no intervening cash FLOWS, simply a final cash exchange at the conclusion of the contract. Forwards are highly customizable; the two parties can negotiate terms regarding amount, SETTLEMENT, MATURITY, and UNDERLYING reference.Long forward payoff profileShort forward payoff profileSee also FORWARD DISCOUNT, FORWARD FORWARD, FORWARD PREMIUM, FORWARD PRICE, FORWARD RATE, FORWARD RATE AGREEMENT, NONDELIVERABLE FORWARD.
palgrave
0
16.66
18.1
17.1
18.05
22.4
11.25
20.5
18.5
FORWARD BALANCE SHEET
A future depiction of a firm’s BALANCE SHEET and OFF-BALANCE SHEET commitments and contingencies. Construction of a forward balance sheet is an important element in managing RISK, LIQUIDITY, and CAPITAL as it provides an estimate of how a firm’s operations will change with the passage of time or the occurrence of contingent events.
palgrave
0
36.12
14.8
0
13.23
16.8
10.31
20.25
18.9
FORWARD BUNDLE
A BUNDLE of EURODOLLAR FUTURES that does not begin with the FRONT MONTH contract, but with some future CON- TRACT date.
palgrave
0
75.54
7.9
0
9.23
11.3
9.19
11.5
10.3
FORWARD DELIVERY
Arrangement for the future delivery of goods for cash, or vice-versa, and an essential feature of a FUTURES contract and a FORWARD contract. See also CASH DELIVERY.
palgrave
0
57.77
8.6
0
10.72
9.4
9.57
8.25
9.84
FORWARD DISCOUNT
A FORWARD PRICE (or rate) for future delivery of an ASSET that is lower than the SPOT PRICE (or rate) for immediate delivery. See also FORWARD PREMIUM.
palgrave
0
57.77
8.6
0
7.71
7.1
7.81
7.75
9.84
FORWARD FORWARD
A FORWARD transaction that is contracted to start at a future date. See also RATE, FORWARD RATE AGREEMENT.
palgrave
0
62.34
6.8
0
8.67
6.3
7.59
4.5
8.04