FICO® Score is a credit scoring model developed by the Fair Isaac Corporation (FICO) that lenders use to assess an individual's credit risk. The score ranges from 300 to 850, with higher scores indicating better creditworthiness. It is calculated based…

A Financial Advisor is a professional who provides guidance on financial matters to individuals or organizations. This includes investment strategies, retirement planning, estate planning, tax optimization, and risk management. Financial advisors may hold certifications such as Certified Financial Planner (CFP)…

Financial derivatives are contracts whose value is derived from the performance of underlying assets, indices, or interest rates. They are used for various purposes, including hedging risks, speculating on future price movements, and arbitrage. Common types of financial derivatives include:…

A financial institution is an establishment that provides financial services to its clients, including individuals, businesses, and governments. These institutions facilitate the flow of money in the economy by accepting deposits, providing loans, and offering investment products. Financial institutions can…

Financial Leverage refers to the use of borrowed funds to increase the potential return on investment. It involves using various financial instruments or borrowed capital—such as debt—to amplify the outcomes of an investment. The underlying principle is that by using…

Financial securities are financial instruments that represent an ownership position, a creditor relationship, or rights to ownership as represented by an option. They can be categorized into two main types: equity securities and debt securities.Equity securities, such as stocks, represent…

FINRA stands for the Financial Industry Regulatory Authority. It is a non-profit organization that regulates member brokerage firms and exchange markets. FINRA's primary purpose is to protect investors by ensuring that the securities industry operates fairly and honestly. It oversees…

Fintech, short for financial technology, refers to the integration of technology into offerings by financial services companies to improve their use of financial services. This encompasses a broad range of applications including mobile banking, online payment systems, and blockchain technology.…

FinViz is a financial visualization platform that provides a comprehensive suite of tools for stock market analysis, screening, and data visualization. It offers real-time quotes, charts, financial news, and stock screening capabilities, allowing users to analyze stocks based on various…

First In, First Out (FIFO) is an inventory management and accounting method where the first items added to inventory are the first ones to be sold or used. This approach ensures that older stock is utilized before newer stock, helping…

First World Countries refer to nations that are characterized by high levels of economic development, advanced technological infrastructure, and a high standard of living. These countries typically have stable governments, well-developed industries, and a high Human Development Index (HDI).Examples of…

First World Countries refer to nations that are characterized by high levels of economic development, advanced technological infrastructure, and a high standard of living. These countries typically have stable governments, well-developed industries, and a high Human Development Index (HDI).Examples of…

A fiscal quarter is a three-month period that companies and organizations use for financial reporting and budgeting purposes. A fiscal quarter may not necessarily align with the calendar quarter and can vary by organization. Businesses typically divide their fiscal year…

A Fiscal Year (FY) is a one-year period that companies and governments use for financial reporting and budgeting. It may not align with the calendar year, allowing organizations to choose a period that best fits their operational needs. For instance,…

A fixed annuity is a type of insurance product that provides a guaranteed return on investment and regular income payments over a specified period or for the lifetime of the annuitant. Fixed annuities are designed to protect against market fluctuations,…

Fixed Asset Capitalization Policy refers to the guidelines set by an organization to determine when to capitalize a fixed asset rather than expensing it. This policy outlines the criteria for recognizing fixed assets on the balance sheet, including the cost…

Fixed Income refers to a type of investment that provides returns in the form of regular, fixed payments and the eventual return of principal at maturity. These investments typically include bonds, loans, and other debt instruments where the issuer agrees…

Flippening refers to a hypothetical event in the cryptocurrency world where a lesser-known cryptocurrency overtakes a more dominant one in terms of market capitalization, usage, or overall influence. Examples include: Ethereum vs. Bitcoin: The term gained popularity during discussions about…

Float In computer programming and web development, "float" refers to a data type used to represent numbers with fractional parts. It allows for the storage and manipulation of decimal values. Examples: Floating-point number: 3.14, -0.001, 2.71828 In programming: float pi…

A Floating Rate Note (FRN) is a debt security that has a variable interest rate, which is typically tied to a benchmark rate, such as LIBOR or the U.S. Treasury Bill rate. The interest payments on an FRN fluctuate at…

FMLA The Family and Medical Leave Act (FMLA) is a United States federal law enacted in 1993 that allows eligible employees to take unpaid, job-protected leave for specified family and medical reasons. It aims to help employees balance their work…

A "Focused Fund" is an investment fund that concentrates its holdings in a limited number of securities or sectors, typically aiming to achieve higher returns through a more targeted investment strategy. This approach allows fund managers to leverage their expertise…

The FOMC (Federal Open Market Committee) is a component of the Federal Reserve System responsible for overseeing open market operations, which influence money supply and interest rates in the U.S. economy. The FOMC meets regularly to assess economic conditions and…

Foolish refers to a lack of good sense or judgment

Forbearance refers to the act of refraining from enforcing a right, obligation, or debt. It often involves a temporary delay or suspension of action, particularly in a legal or financial context. Forbearance is commonly seen in loan agreements, where a…