|Fade the Market: The smart money is
selling into rallies.
|Fannie Mae - Federal National Mortgage
Association. A publicly owned organization
that purchases mortgages from banks and resells
them on the open market to investors.
|FASB -Financial Accounting Standards Board:
A governing body established in 1973 to define and
monitor the usage of generally accepted accounting
principles, called GAAP.
|FDIC: Federal Deposit Insurance
Corporation, the federal agency that guarantees
deposits made by consumers in member banks.
|Federal Funds Rate: The interest rate
on overnight loans between banks who cannot meet
reserve cash requirements.
|Federal Reserve Board (FED): Seven
members appointed by the president to oversee the
federal reserve banking system. They set key
interest rates to stimulate or slow down the
|Federal Reserve System: An organization
established by the Federal Reserve Act of 1913 to
regulate the U.S. banking system.
|Fiscal Year: A 12 month period selected
by a company for reporting to the IRS.
|FIFO: First In, First Out, a method of
accounting for inventory that assumes that the
first item to be produced was the first item sold.
The opposite of LIFO.
|Fixed Cost: Production costs that do
not vary, even when sales volumes change. Expenses
such as rent, interest, and executive compensation
are considered fixed costs.
|Float: 1. The total number of shares
available for trading. 2. The time lag between
when a check is deposited and when it clears.
|Franchise: The sale of the license and
rights to establish and manage a business under a
recognized name using set business practices.
|Franchisee: The individual or company
that purchases the rights to operate a business
from the owner or franchiser or franchiser.
|Franchisor - Franchiser: The owner of
the rights to a business concept who sells them to
|Fraudulent Conveyance: The transfer of
funds or property from one individual or business
to another in order to avoid having to turn over
such assets to creditors. A form of hiding assets.
|Fraud: Any scheme used to misrepresent,
deceive, or take advantage of another in order to
deprive them of money, property, or a legal right.
|Freddie Mac: A nickname for the Federal
Home Loan Mortgage Corporation (FHLMC) A private,
shareholder-owned company that was chartered by
Congress in 1970 to create a secondary market in
conventional mortgages, thus increasing the supply
of funds available to prospective homebuyers. The
FHLMC purchases mortgages from federally-insured
financial institutions and resells them in the
form of mortgage-backed securities, which it
guarantees. FHLMC is often called a
"government-sponsored corporation" because it was
created by Congress and is regulated differently
than other corporations
|Free on board (FOB): Shipping
arrangements that indicate exactly when the buyer
assumes responsibility for the transport of a
product. The location specified on an invoice as
FOB is the point to which the seller will assume
responsibility for transport. Beyond that point,
it is the buyer's responsibility.
|Fundamental Analysis: Predicting the
potential of a company’s stock by analyzing the
financial data from its financial statements, as
well as other economic factors that affect the
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