Fixed-income investmentFixed-income investments typically pay interest or dividends on a regular schedule and may promise to return your principal at maturity, though that…
Fixed-rate APRAn APR set at a certain percent that cannot change during the period of time outlined in your credit card agreement.
Fixed-Rate Mortgage (FRM)(FRM)a mortgage loan with a fixed interest rate that remains the same for the life of the loan.
FlagsFlags identify missing or incomplete information on a financial disclosure report in FDM.
Flat taxA flat tax, also known as a regressive tax, applies to everyone at the same rate, as a sales tax does.
Flexible spending accountSome employers offer flexible spending accounts (FSA), sometimes called cafeteria plans, as part of their employee benefits package.
Float1) The amount of uncollected funds represented by checks in the possession of one bank but drawn on other banks.
FloatingThe process of an applicant deciding against locking-in an interest rate at the time of application and instead electing to float with the market until a…
Floating an issueWhen a corporation or public agency offers new stocks or bonds to the public, making the offering is called floating an issue.
Floating rateA debt security or corporate preferred stock whose interest rate is adjusted periodically to reflect changing money market rates is known as a floating…
Floating sharesFloating shares are shares of a public corporation that are available for trading in a stock market.
Flood InsuranceFlood insurance protects against water from an overflowing river or a hurricane's tidal surge and also covers damage from water that builds up during…
Flood PlainA strip of relatively flat and normally dry land alongside a stream, river, or lake that is covered by water during a flood.
Floor brokerFloor brokers at a securities or commodities exchange handle client orders to buy or sell through a process known as a double action auction, in which…
Floor traderUnlike floor brokers who fill client orders, floor traders buy and sell stocks or commodities for their own accounts on the floor of an exchange.
For Sale By Owner (FSBO)(FSBO)Indicative of a real estate transaction in which the seller is not represented by a real estate broker.
ForbearanceA temporary period of time during which a regular monthly mortgage payment is reduced or suspended.
ForeclosureA legal process in which property that is collateral or security for a loan may be sold to help repay the loan when the loan is in default.
Foreclosure Preventionsteps by which the servicer works with the homeowner to find a permanent solution to resolve an existing or impending loan delinquency.
Foreign currency transactionA foreign currency transaction is a purchase and/or cash advance that you make in a foreign currency, i.e. not U.S. dollars.
Foreign exchange (FOREX)Any type of financial instrument that is used to make payments between countries is considered foreign exchange.
Foreign Transaction FeeA fee assessed by your financial institution for making a transaction at another financial institution or bank's ATM.
Forged CheckA check on which the drawer's signature has been forged.
ForgeryThe fraudulent signing or alteration of another's name to an instrument such as a deed, mortgage, or check.
Form ADVAll investment advisory firms must register by filing a Form ADV either with the Securities and Exchange Commission if they manage $25 million or more in…
Formula investingWhen you invest on a set schedule, you're using a technique known as formula investing.
Forward contractA forward contract is similar to a futures contract, in the sense that both types of contracts cover the delivery and payment for a specific commodity at…
Forward price-to-earnings ratioStock analysts calculate a forward price-to-earnings ratio, or forward P/E, by dividing a stock's current price by estimated future earnings per share.
foster childA foster child is any child placed with a taxpayer by an authorized placement agency or by court order.
Fourth marketInstitutional investors, including mutual fund companies and pension funds, who trade large blocks of securities among themselves are operating in what's…
Fractional shareIf you reinvest your dividends or invest a fixed dollar amount in a stock dividend reinvestment plan (DRIP) or mutual fund, the amount may not be enough…
Fraud AlertA key provision of the Fair and Accurate Credit Transactions Act of 2003 is the consumer's ability to place a fraud alert on their credit record.
Freddie MacFreddie Mac is a shareholder-owned corporation that was chartered in 1970 to increase the supply of mortgage money that lenders are able to make available…
Free cash flowA business's free cash flow statement may differ significantly from its cash flow statement.
Free ChecksNumber of free transactions allotted to the described account on a monthly basis. If this limit is exceeded, the per-item charge is assessed.
Freedom of Information Act (FOIA)(FOIA)A Federal law that mandates that all the records created and kept by Federal agencies in the executive branch of government must be open for public…
Front-end loadA sales charge levied on the purchase of mutual fund units.
FrontrunningIf you trade stock or other investments because you know that an upcoming transaction by a third party is likely to affect the market price of the…
Frozen AccountAn account on which funds may not be withdrawn until a lien is satisfied and a court order or other legal process makes the account available for…
Full faith and creditFederal and municipal governments can promise repayment of debt securities they issue because they can raise money through taxes, borrowing, and other…
Full-service brokerage firmFull-service brokerage firms usually offer their clients a range of services in addition to executing their buy and sell orders.
Fund familyA fund family, or family of funds, is a group of mutual funds controlled by a single investment company, bank, or other financial institution.
Fund networkFund networks, sometimes called fund supermarkets, offer access to thousands of different mutual funds from many of the major fund families.
Fund of funds (FOF)A fund of funds is a pooled investment, such as a mutual fund or a hedge fund, whose underlying investments are other funds rather than individual…
Fundamental analysisFundamental analysis is one of two primary methods for analyzing a stock's potential return.
Funds ReceivableFilers and their spouses and dependent children may also serve as the lender for a loan, which is a receivable account.
FungibleWhen two or more things are interchangeable, can be substituted for each other, or are of equal value, they are described as fungible.
FurnisherAn entity that provides information about a consumer to a consumer reporting agency for inclusion in a consumer report.
FuturesContracts to buy or sell specific quantities of a commodity or financial instrument at a specified price with delivery set at a specified time in the…
Futures Commission Merchant (FCM)A futures commission merchant (FCM) is a person or a firm that acts as an agent to execute buy or sell orders for futures contracts or commodity options.
Futures contractFutures contracts, when they trade on regulated futures exchanges, obligate you to buy or sell a specified quantity of the underlying product for a…
Futures exchangeTraditionally, futures contracts and options on those contracts have been bought and sold on a futures exchange, or trading floor, in a defined physical…
GainerStocks that increase in value over the course of the trading day are described as gainers or advancers.
Garnishment/GarnishA legal process that allows a creditor to remove funds from your bank account to satisfy a debt that you have not paid.
gasoline excise taxAn excise tax paid by consumers when they purchase gasoline. The tax covers the manufacture, sale, and use of gasoline.
General accountA general account is a deposit account. In the insurance industry, a general account is the account into which all incoming funds, except those designated…
General Agreement on Tariffs and Trade (GATT)A General Agreement on Tariffs and Trade was signed in 1947 to provide an international forum to encourage free trade, reduce tariffs, and provide a…
General obligation (GO) bondState and local governments issue general obligation (GO) municipal bonds and pay the interest and repay the principal from general revenues.
geocodeGeocode refers to the combination of applicable codes for the metropolitan area, state, county and census tract.
GiftA payment, advance, forbearance, rendering, or deposit of money, or anything of value, unless consideration of equal or greater value is received by the…
Gift taxA gift tax is a tax on the combined total value of the taxable gifts you make that exceed your lifetime federal tax-exempt limit of $1 million.
Gilt-edged securityWhen the term gilt-edged is applied to bonds, it's the equivalent of describing a stock as a blue chip.
Global depositary receipt (GDR)To raise money in more than one market, some corporations use global depositary receipts (GDRs) to sell their stock on markets in countries other than the…
Global fundGlobal, or world, mutual funds invest in US securities as well as those of other countries.
Go longWhen you go long, you buy a security or other financial product that you intend to hold for a period of time or one that you expect to increase in value…
Go publicA corporation goes public when it issues shares of its stock in the open market for the first time, in what is known as an initial public offering (IPO).
Go shortWhen you enter a futures contract that commits you to sell or deliver the underlying product, you go short or have a short position.
Gold standardThe gold standard is a monetary system that measures the relative value of a currency against a specific amount of gold.
Good 'til canceled (GTC)If you want to buy or sell a security at a specific price, you can ask your broker to issue a good 'til canceled (GTC) order.
Good faith depositA good faith deposit is a sum of money provided by a buyer to a seller, which demonstrates the buyer's intention to purchase.
Good faith estimateA good faith estimate is a written summary provided by your mortgage lender. It shows the amount you can expect to pay at your real estate closing to…
Good Faith Estimate (GFE)(GFE)A document which tells borrowers the approximate costs they will pay at or before settlement, based on common practice in the locality.
Good willWhen the term good will is used in connection with evaluating a company, it covers the intangible value of its reputation, its satisfied clients, and its…
Government bondThe term government bond is used to describe the debt securities issued by the federal government, such as US Treasury bills, notes, and bonds.
Government National Mortgage Association (Ginnie Mae)(Ginnie Mae)The Government National Mortgage Association, known as Ginnie Mae, guarantees mortgage-backed securities issued by approved private institutions and…
Government-Sponsored Enterprise (GSE)(GSE)Business organizations chartered and sponsored by the federal government, which include Fannie Mae, Freddie Mac, and the FHLBanks.
Government-Sponsored Enterprise (GSEs)(GSEs)Private corporations created by the U.S. Government to reduce borrowing costs. They are chartered by the U.S.
Grace PeriodA time period after the due date that you may pay a premium without penalty. The policy remains in force during this time.
GrantorThe person conveying real property by a trust deed as security for the performance of an obligation.
Green fundA mutual fund that selects investments based on a commitment to environmental principles may be described as a green fund.
Green shoe clauseA green shoe clause allows the group of investment banks that underwrite an initial public offering (IPO) to buy and offer for sale 15% more shares at the…
Gross Annual IncomeThe income reported is the total gross annual income an institution relied upon in making the credit decision.
Gross domestic product (GDP)The market value of goods and services produced by labor and property in the United States, regardless of nationality; GDP replaced gross national product…
Gross IncomeMoney, goods, services, and property a person receives that must be reported on a tax return. Includes unemployment compensation and certain scholarships.
Gross marginGross margin, sometimes called gross profit, is the percentage by which profits exceed production costs.
Gross national product (GNP)The market value of goods and services produced by labor and property supplied by U.S. residents, regardless of where they are located.
Gross spreadIn an initial public offering (IPO), the gross spread is the difference between what the underwriters pay the issuing company per share and the per share…
GrowthGrowth is an increase in the value of an investment over time. Unlike investments that produce income, those that are designed for growth don't…
Growth and income fundGrowth and income mutual funds invest in securities that provide, as their name suggests, a combination of growth and income.
Growth rateA growth rate measures the percentage increase in the value of a variety of markets, companies, or operations.
GuaranteeA pledge to investors that the issuing company will bear the default risk on the collateral pool of loans, thereby ensuring the timely payment of…
Guaranteed Investment Contract (GIC)A guaranteed investment contract, or GIC (pronounced gick), promises to preserve your principal and to provide a fixed rate of return when you begin to…
Guaranteed renewable policyYour insurance company can't cancel a guaranteed renewable life insurance policy as long as you pay the premium on time.
Guaranteed Student LoanAn extension of credit from a financial institution that is guaranteed by a Federal or State government entity to assist with tuition and other…
GuarantorA party who agrees to be responsible for the payment of another party's debts should that party default.
GuardianA guardian is someone you designate to be legally responsible for your minor children or other dependents who are unable to take care of themselves if you…
HAFA Short Salewhen the homeowner sells the property for less than the full amount due on the mortgage.