Face Value
Face value typically refers to the value of a coin, bill, bullion coin, or stamp as printed on its face by the minting authorities of the particular country. In some instances, the face value is largely symbolic. On the other hand, it may also refer to the nominal value of security as specified by the issuing body. The face value of stocks is their original cost as indicated on the certificate. The stated or par value of common stock is most often symbolic. In view of bonds, face value stands for the amount that should be paid to the bond holder at maturity date. It should be noted that before maturity, the value of the bond may be greater or smaller than the face value. This depends on the interest rate to be paid and on the potential risk of default. The value of bonds which are sold on the secondary market typically fluctuates with the change in the interest rate. If the interest rate exceeds the coupon value of the bond, than the latter will be sold at a discount. When the coupon rate surpasses the interest rate, the bond will be sold at a premium. In contrast, the actual and the face value match at maturity.
There are other examples of assets with face value. For instance, the death benefit stands for the face value of life insurance policies. The insurance company is obliged to pay a stated double amount of the face value in the event of accidental death. This term excludes death caused by natural causes as well as acts of homicide or suicide. This policy is referred to as double indemnity. In addition, the face value of property insurances and health insurance policies equals the maximum amount to be paid. Finally, face value also refers to the price of tickets for sports, music, or other events and initiatives, as printed on their face.
http://en.wikipedia.org/wiki/Face_Value
FATF - [Financial Action Task Force]
International policy making body to address money laundering issues.
Finance Minister: Rafia al-Issawi [Sunni]
He is currently serving as a deputy prime minister. He was a fierce critic of U.S. troop activity during the first major battle of Fallujah in 2004 when he was serving as director of the city’s hospital, claiming more than 600 people – half of them women and children – were killed in the fighting.
http://www.mof.gov.iq/ar/ http://www.mof.gov.iq/en/
FinCEN - [Financial Crimes Enforcement Network]
The US regulatory body charged with drafting regulations, overseeing BSA examinations, and assessing penalties.
Fiscal Deficit
When a government's total expenditures exceed the revenue that it generates (excluding money from borrowings). Deficit differs from debt, which is an accumulation of yearly deficits.
Fiscal Year
The term fiscal year refers to a time period, usually a 12 month period, which a company or another organization uses for accounting purposes. The legislation that regulates accounting stipulates that companies should issue financial statements every twelve months. The fiscal year may vary depending on the regulatory laws of each country. Notably most of the time, the fiscal year coincides with the calendar year. The term is always referred to by the end date of the fiscal year. For instance, if a company ends its fiscal year on November 30, 2008 the period between December 1, 2008 and November 30, 2008 comprises the fiscal year. This period will be referred to as fiscal year 2008. Companies gain actual benefits by not using the calendar year. They may close the company’s records at a time of their convenience.
However, there are some institutional as well as country-specific exceptions to this rule. The higher educational institutions typically commence the fiscal year at the beginning of the school year and complete it during the summer. The purpose is to have a match between the fiscal year and the school year. Furthermore, some states have different regulations in view of the fiscal year. The Australian law stipulates that the fiscal year commences on July 1 and finishes on June 30 of the next calendar year. This regulation is applicable to the federal budget, the personal income tax, as well as the fiscal year of most companies. Similarly, the fiscal year of the government of New Zealand starts on July 1 and ends on June 30 of the following calendar year. The financial year of legal entities commences on April 1 and ends on March 31. This timeframe also applies to the personal income tax. In other countries such as Canada, Hong Kong, India, and Japan, the fiscal year of the government authorities begins on April 1 and finishes on March 31.
For example: Royal Bank of Canada fiscal year end on October 31 each year.
FIU - [Financial Intelligence Unit]
A central governmental organization that obtains financial reports and information for analysis.
Fixed Charges
The fixed charges or expenses are not related to the level of consumption of goods and services. The fixed expense stands for costs which do not fluctuate from one period to another or which change just negligibly. Fixed expenses are typically paid in a regular manner - week to week, month to month, quarter to quarter or year to year.
In small and medium businesses, fixed costs stand for the regular expenses that will not fluctuate with regard to production. Typically, the fixed expenses of small businesses cover charges for internet access, long-term rentals of equipment, and insurance policies.
Fixed expenses represent a major element of the overhead expenses of the firm. As mentioned, they do not fluctuate with changes in production or the sales volume. Other such factors are the rented facilities, insurance policies, dues, equipment leases, loan repayments, salaries for the executive level, and advertisements. Fixed costs do not vary with regard to production or sales volume, but they can change in time. As a result, fixed costs may be also referred to as period costs.
The fixed expenses of corporations are typically regarded as the interest upon bonds, floating debts, and sinking funds. The sinking fund can be classified as insurance policies, rentals, and various taxes, related to the production capacity of the company and to its actual level of output. At times, the three items may be listed under a separate heading and excluded from the fixed expenses. The operating expenses of the company should cover them; otherwise, they are listed under fixed expenses. These charges may also include expenses fixed by agreements, such as pension fund contributions.
There is a large number of specialists who believe that in good periods, the companies’ fixed charges must not exceed more than fifty percent of the net earnings. This is important as to provide for decline in earnings in unfavorable time periods.
Floor
A Floor is a large trading area of a stock exchange where securities, futures and bonds are traded. For example “The floor of the Chicago Stock Exchange”.
http://en.wikipedia.org/wiki/Trading_floor
Forex
The Forex market is similar to the equities` market. Some important differences exist, however. Two or more accounts are offered by majority of the brokers.
When one decides to trade on the Forex market, he should choose a broker. In this regard, here are some things to look for:
- Low spread – it is the difference between the purchase price of a currency and the price at which it can be sold. This difference shows how Forex brokers make money while they do not charge a commission.
- Quality institution – Forex brokers are unlike equity brokers who are normally related to the lending institutions or the banks. The reason is that a large amount of capital is required for operations. They are registered with the Futures Commission Merchant
- Tools and research – A wide variety of trading platforms are offered by the Forex traders. Among them are the technical analysis tools, real-time charts, support for trading systems, and real time news and data. It is a good idea to test different trading platforms by requesting trials prior to committing to any broker. Economic calendars, as well as fundamental and technical commentaries are often provided by the brokers
- Leverage options ranging widely – the price deviations are just fractions of a cent the leverage. Leverage represents the amount of money a broker will lend one, shown as a ratio between the available total capital and the actual one. A broker will lend to the borrower one hundred dollars for every dollar of actual capital when the ratio is 100:1. The risk of a marginal call is lower when the leverage is low.
- Types of Accounts - The mini account is considered to be the smallest type of account. It has a required minimum of $250. The Mini offers a high leverage amount, which one is going to need in order to trade with such a small amount of capital. The standard account has initial capital minimum requirement of $2000.
http://www.forex.com/
Face value typically refers to the value of a coin, bill, bullion coin, or stamp as printed on its face by the minting authorities of the particular country. In some instances, the face value is largely symbolic. On the other hand, it may also refer to the nominal value of security as specified by the issuing body. The face value of stocks is their original cost as indicated on the certificate. The stated or par value of common stock is most often symbolic. In view of bonds, face value stands for the amount that should be paid to the bond holder at maturity date. It should be noted that before maturity, the value of the bond may be greater or smaller than the face value. This depends on the interest rate to be paid and on the potential risk of default. The value of bonds which are sold on the secondary market typically fluctuates with the change in the interest rate. If the interest rate exceeds the coupon value of the bond, than the latter will be sold at a discount. When the coupon rate surpasses the interest rate, the bond will be sold at a premium. In contrast, the actual and the face value match at maturity.
There are other examples of assets with face value. For instance, the death benefit stands for the face value of life insurance policies. The insurance company is obliged to pay a stated double amount of the face value in the event of accidental death. This term excludes death caused by natural causes as well as acts of homicide or suicide. This policy is referred to as double indemnity. In addition, the face value of property insurances and health insurance policies equals the maximum amount to be paid. Finally, face value also refers to the price of tickets for sports, music, or other events and initiatives, as printed on their face.
http://en.wikipedia.org/wiki/Face_Value
FATF - [Financial Action Task Force]
International policy making body to address money laundering issues.
Finance Minister: Rafia al-Issawi [Sunni]
He is currently serving as a deputy prime minister. He was a fierce critic of U.S. troop activity during the first major battle of Fallujah in 2004 when he was serving as director of the city’s hospital, claiming more than 600 people – half of them women and children – were killed in the fighting.
http://www.mof.gov.iq/ar/ http://www.mof.gov.iq/en/
FinCEN - [Financial Crimes Enforcement Network]
The US regulatory body charged with drafting regulations, overseeing BSA examinations, and assessing penalties.
Fiscal Deficit
When a government's total expenditures exceed the revenue that it generates (excluding money from borrowings). Deficit differs from debt, which is an accumulation of yearly deficits.
Fiscal Year
The term fiscal year refers to a time period, usually a 12 month period, which a company or another organization uses for accounting purposes. The legislation that regulates accounting stipulates that companies should issue financial statements every twelve months. The fiscal year may vary depending on the regulatory laws of each country. Notably most of the time, the fiscal year coincides with the calendar year. The term is always referred to by the end date of the fiscal year. For instance, if a company ends its fiscal year on November 30, 2008 the period between December 1, 2008 and November 30, 2008 comprises the fiscal year. This period will be referred to as fiscal year 2008. Companies gain actual benefits by not using the calendar year. They may close the company’s records at a time of their convenience.
However, there are some institutional as well as country-specific exceptions to this rule. The higher educational institutions typically commence the fiscal year at the beginning of the school year and complete it during the summer. The purpose is to have a match between the fiscal year and the school year. Furthermore, some states have different regulations in view of the fiscal year. The Australian law stipulates that the fiscal year commences on July 1 and finishes on June 30 of the next calendar year. This regulation is applicable to the federal budget, the personal income tax, as well as the fiscal year of most companies. Similarly, the fiscal year of the government of New Zealand starts on July 1 and ends on June 30 of the following calendar year. The financial year of legal entities commences on April 1 and ends on March 31. This timeframe also applies to the personal income tax. In other countries such as Canada, Hong Kong, India, and Japan, the fiscal year of the government authorities begins on April 1 and finishes on March 31.
For example: Royal Bank of Canada fiscal year end on October 31 each year.
FIU - [Financial Intelligence Unit]
A central governmental organization that obtains financial reports and information for analysis.
Fixed Charges
The fixed charges or expenses are not related to the level of consumption of goods and services. The fixed expense stands for costs which do not fluctuate from one period to another or which change just negligibly. Fixed expenses are typically paid in a regular manner - week to week, month to month, quarter to quarter or year to year.
In small and medium businesses, fixed costs stand for the regular expenses that will not fluctuate with regard to production. Typically, the fixed expenses of small businesses cover charges for internet access, long-term rentals of equipment, and insurance policies.
Fixed expenses represent a major element of the overhead expenses of the firm. As mentioned, they do not fluctuate with changes in production or the sales volume. Other such factors are the rented facilities, insurance policies, dues, equipment leases, loan repayments, salaries for the executive level, and advertisements. Fixed costs do not vary with regard to production or sales volume, but they can change in time. As a result, fixed costs may be also referred to as period costs.
The fixed expenses of corporations are typically regarded as the interest upon bonds, floating debts, and sinking funds. The sinking fund can be classified as insurance policies, rentals, and various taxes, related to the production capacity of the company and to its actual level of output. At times, the three items may be listed under a separate heading and excluded from the fixed expenses. The operating expenses of the company should cover them; otherwise, they are listed under fixed expenses. These charges may also include expenses fixed by agreements, such as pension fund contributions.
There is a large number of specialists who believe that in good periods, the companies’ fixed charges must not exceed more than fifty percent of the net earnings. This is important as to provide for decline in earnings in unfavorable time periods.
Floor
A Floor is a large trading area of a stock exchange where securities, futures and bonds are traded. For example “The floor of the Chicago Stock Exchange”.
http://en.wikipedia.org/wiki/Trading_floor
Forex
The Forex market is similar to the equities` market. Some important differences exist, however. Two or more accounts are offered by majority of the brokers.
When one decides to trade on the Forex market, he should choose a broker. In this regard, here are some things to look for:
- Low spread – it is the difference between the purchase price of a currency and the price at which it can be sold. This difference shows how Forex brokers make money while they do not charge a commission.
- Quality institution – Forex brokers are unlike equity brokers who are normally related to the lending institutions or the banks. The reason is that a large amount of capital is required for operations. They are registered with the Futures Commission Merchant
- Tools and research – A wide variety of trading platforms are offered by the Forex traders. Among them are the technical analysis tools, real-time charts, support for trading systems, and real time news and data. It is a good idea to test different trading platforms by requesting trials prior to committing to any broker. Economic calendars, as well as fundamental and technical commentaries are often provided by the brokers
- Leverage options ranging widely – the price deviations are just fractions of a cent the leverage. Leverage represents the amount of money a broker will lend one, shown as a ratio between the available total capital and the actual one. A broker will lend to the borrower one hundred dollars for every dollar of actual capital when the ratio is 100:1. The risk of a marginal call is lower when the leverage is low.
- Types of Accounts - The mini account is considered to be the smallest type of account. It has a required minimum of $250. The Mini offers a high leverage amount, which one is going to need in order to trade with such a small amount of capital. The standard account has initial capital minimum requirement of $2000.
http://www.forex.com/