Face Value refers to the nominal or dollar value of a security stated by the issuer. This is the amount that will be paid back to the bondholder at maturity, regardless of the market price of the bond or stock.…

Factor investing is an investment strategy that involves targeting specific drivers of return across asset classes. These factors are characteristics or attributes of securities that are believed to influence their performance. Common factors include: Value: Investing in undervalued stocks, often…

Factors of Production refer to the resources used to create goods and services in an economy. These factors are typically categorized into four main groups: Land: This includes all natural resources used in production, such as minerals, water, and forests.…

FAFSAFAFSA stands for the Free Application for Federal Student Aid. It is a form completed by current and prospective college students in the United States to determine their eligibility for financial aid.Examples Federal Grants: Students may receive Pell Grants based…

Fair Market Value (FMV) is defined as the price at which property would change hands between a willing buyer and a willing seller, both of whom are knowledgeable about the relevant facts and neither being under any compulsion to buy…

A "Falling Knife" refers to a stock or asset that has experienced a significant and rapid decline in price, leading investors to believe that it is undervalued and may present a buying opportunity. However, attempting to buy into a falling…

A "Family of Funds" refers to a collection of mutual funds or investment funds that are managed by the same investment company. This arrangement allows investors to have a variety of investment options under one umbrella, often facilitating easier transfers…

Family Trust A family trust is a specific type of trust established to benefit family members. It allows a person (the grantor) to transfer assets to a trustee, who then manages those assets on behalf of the beneficiaries, typically family…

Fannie Mae is a government-sponsored enterprise (GSE) created in 1938 to expand the secondary mortgage market in the United States. By purchasing and guaranteeing loans made by lenders, Fannie Mae facilitates increased liquidity and stability in the mortgage market. It…

Fast Fashion refers to a business model in the clothing industry that emphasizes the rapid production of inexpensive clothing in response to the latest trends. This model enables retailers to quickly bring new styles from the runway or popular culture…

FATFIRE refers to a financial independence strategy aimed at achieving a lavish lifestyle in retirement or early retirement, requiring a significantly higher net worth than traditional FIRE (Financial Independence, Retire Early) approaches. Individuals pursuing FATFIRE typically focus on accumulating enough…

A FDA Complete Response Letter (CRL) is a communication from the U.S. Food and Drug Administration (FDA) that indicates the agency's review of a New Drug Application (NDA) or Biologics License Application (BLA) has been completed, but the application cannot…

FDIC stands for the Federal Deposit Insurance Corporation. It is a United States government agency that provides deposit insurance to depositors in U.S. commercial banks and savings institutions. The primary purpose of the FDIC is to maintain public confidence in…

The Fear and Greed Index is a market sentiment indicator that measures the emotions driving investors' behavior, primarily fear and greed. It is calculated using various factors, including volatility, market momentum, social media activity, and safe-haven demand. The index ranges…

The Federal Funds Rate is the interest rate at which depository institutions, such as banks and credit unions, lend reserve balances to other depository institutions overnight on an uncollateralized basis. This rate is a critical benchmark for other interest rates…

Federal Income Tax is a tax imposed by the federal government on the income of individuals, corporations, and other entities. This tax is a progressive tax, meaning that the rate increases as the taxable amount increases. The tax is calculated…

The Federal Insurance Contributions Act (FICA) is a U.S. federal law that mandates a payroll tax to fund Social Security and Medicare. FICA contributions are taken from employees' wages and matched by employers, with the funds supporting retirement, disability, and…

Federal Reserve The Federal Reserve, often referred to as the Fed, is the central banking system of the United States. Established in 1913, it serves several key functions, including regulating banks, conducting monetary policy, maintaining financial stability, and providing financial…

The Federal Trade Commission (FTC) is an independent agency of the United States government established in 1914. Its primary purpose is to protect consumers and promote competition by preventing anticompetitive, deceptive, and unfair business practices.The FTC enforces various federal antitrust…

A feeder fund is an investment vehicle that pools capital from multiple investors to invest in a master fund. The master fund manages the investments and operates as a single entity, while feeder funds serve as conduits for investors to…

FF&E stands for Furniture, Fixtures, and Equipment. It refers to the movable items in a building that are not part of the structure itself but are necessary for its functionality and comfort.Examples of FF&E include: Furniture: chairs, tables, desks, and…

Fiat Currency Fiat currency is a type of currency that is issued by a government and has value primarily because the government maintains it and people have faith in its value. Unlike commodity money, which is backed by a physical…

A Fiat Wallet is a digital wallet that stores traditional currency (fiat money) rather than cryptocurrencies. It allows users to manage, transfer, and transact using government-issued currencies such as USD, EUR, or JPY. Fiat wallets can be linked to bank…

Fibonacci Retracement is a technical analysis tool used to identify potential levels of support and resistance in financial markets. It is based on the Fibonacci sequence, where each number is the sum of the two preceding ones, and the key…

FICA Taxes FICA taxes refer to the Federal Insurance Contributions Act taxes, which are payroll taxes imposed on both employees and employers to fund Social Security and Medicare programs. These taxes are critical for providing retirement benefits, disability income, and…