Glossary F
Fair market value
The price at which an asset would sell in a competitive market.
Fair value pricing
The process of determining the value of an asset based on market conditions.
Family offices
Private wealth management firms that manage the financial affairs of wealthy families.
Federal Reserve System
The central banking system of the United States.
Financial advisor
A professional who provides financial advice to clients.
Financial advisory
A professional who provides financial advice to clients.
Financial advisory services
Professional advice on financial matters, such as investment strategies and financial planning.
Financial Analysis
The process of evaluating a company’s financial performance and health.
Financial buyer
An investor who acquires a company for financial gain.
Financial Crimes Enforcement Network (FinCEN)
A bureau of the U.S. Treasury Department that combats financial crimes.
Financial engineering
The use of mathematical models and computer programs to create financial products and strategies.
Financial institutions
Organizations that provide financial services, such as banks, insurance companies, and investment firms.
Financial instruments
Contracts that represent a financial asset or liability, such as stocks, bonds, and derivatives.
Financial intermediation
The process of connecting borrowers and lenders through financial institutions.
Financial Intermediation Function
The role of financial institutions in connecting borrowers and lenders.
Financial leverage
The use of debt to finance a company’s operations.
Financial leverage risks
The potential risks associated with using debt to finance a company’s operations.
Financial modeling
The process of creating a mathematical representation of a company’s financial situation.
Financial planning
The process of creating a roadmap for achieving financial goals.
Financial reporting
The process of preparing and presenting financial information to stakeholders.
Financial reporting standards
Guidelines for how financial information should be presented in a company’s financial statements.
Financial statement audit
An independent examination of a company’s financial statements to ensure accuracy and compliance with accounting standards.
Financial statements
Technology that improves financial services and operations.
Financing options
Reports that show a company’s financial performance and position.
Fixed deposits
Methods of raising capital for a business or investment.
Fixed income investments
Investments that provide a fixed rate of return, such as bonds.
Fixed income securities
Investment products that pay a fixed rate of interest.
Flow trading
Securities that pay a fixed rate of return.
Foundations
Trading strategy that involves buying and selling securities quickly.
Free Cash Flow to Equity (FCFE)
Non-profit organizations that provide funding for charitable causes.
Free Cash Flow to Firm (FCFF)
Measure of a company’s cash flow available to equity investors.
Fund Administration
Measure of a company’s cash flow available to all investors.
Fundamental analysis
Investment fund that invests in other funds.
Fund of funds
Management of administrative tasks for investment funds.
Futures contracts
Agreements to buy or sell an asset at a predetermined price and date in the future.