Financial Terms – F
Financial Terms F
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Fabric – 1. Fabric or cloth. 2. A building’s walls, floor, and roof. 3. The framework of a car or aircraft. 4. A society’s fundamental foundation or structure, as in “the fabric of society.”
Fabrication – the process of making or manufacturing something from raw or semi-finished materials instead of from ready-made components. The word also means a lie, forgery, or falsehood.
Face Value – represents the value of a tradable asset that is stated by the institution that issues it. Also known as the nominal value.
Facility – 1. A place where certain activities occur. Military activities, for example, occur at military facilities. 2 An arrangement with, for example, a bank (overdraft facility). 3. A talent for something (he has a facility for languages).
Fact-Finding – the term refers to the gathering or confirming of information, i.e. ascertaining or collecting facts. Often, a fact-finding mission gathers facts before organizing a full hearing or investigation.
Factor Income – the income that the factors of production provide. Land, for example, provides rent, while labor provides wages. The other two factors of production, capital and enterprise, provide interest and profit respectively.
Factoring – a form of financing when a “factor” purchases an organization’s invoices, or accounts receivables. The factor collects the money owed from the buyer and instantly pays the seller between 70% and 85% of the invoice amount. For the service, the factor charges a fee that is based on a portion of the invoice’s value. For businesses in need of working capital, factoring is beneficial. In algebra, determining a number’s factors is referred to as factoring (UK: factorising).
Factor Portfolio – a diversified portfolio that has a variety of stocks, with different levels of risk exposure (including alterations in interest rates and inflation).
Factors of Production – the components or underlying units from which we create economic commodities and services. Land, labour, capital, and enterprise comprise the four types of production factors (entrepreneurship). The four Ms, or management, machines, materials, and money, are divisions of a factor. The definitions of the primary and secondary factors of production are also provided in the main article.
Facism – a system for managing a nation or civilization, typically involving strict regulation and ultra-nationalist propaganda. A tyrant in charge of the nation rules over both the government and the population’ daily life. Dissension is forcefully suppressed and is not allowed. A fascist is someone who supports fascism.
Failed Trade – when either the buyer or the seller of a securities misses the settlement deadline. Both the buyer and the seller have the potential to default on making payments by the settlement date. We refer to a short fail as the seller failing. We refer to a protracted fail when the buyer fails.
Failover – The phrase describes a continual capacity for proper operation. The system instantly switches to a backup in the event of an issue. In other words, users are not aware of any system flaws or malfunctions. If a system or equipment has a failover mechanism, it can function even if there is a problem.
Fail-Safe – a component of a machine or system that enables “safe failure.” It automatically reacts in a way that avoids harm or at the very least greatly reduces possible risks if something goes wrong. For instance, a lawnmower’s “dead man’s switch” is a fail-safe device. The moment the user releases the lever, the lawnmower will no longer operate.
Fail Soft System – a system that only disables non-essential operations when a defect or other issue arises. As a result, the user can keep utilising it at the most basic level. For instance, the Windows operating system offers a Safe Mode. Windows’ fail-safe mode is called Safe Mode.
Failure Analysis – an investigation into how something failed and why. The investigation also tries to determine what corrective actions are needed. In some cases, the investigators also determine liability.
Failure of Consideration – if one of the parties in a contract fails to fulfill their end of the deal, there is a failure of consideration. The failure may be partial or entire. We also call it a ‘failure of basis.’
Failure Mode – a description of the possible causes of failure. The phrase might refer to a failure that has already happened or one that is imminent. When discussing numerous failures, we use the terms “many failure modes” or “competing risks.” The phrase stands in contrast to failure effect, which considers the future, and failure cause, which examines the past.
Failure Rate – the regularity with which a system, part, or product malfunctions. The phrase is frequently used in a variety of fields and industries, including medicine and reliability engineering. The percentage of new businesses that fail within a certain period of time is referred to as the failure rate.
Fair Competition – refers to a market where all players have an equal chance of success. Bullying, exploitative pricing, and defamation of competitors are not tolerated. Competitors concentrate on increasing their market share and sales by providing the greatest products, services, and prices.
Fair Rate of Return – how much clients can be charged by regulated businesses. For instance, there are restrictions on how much utility providers can charge their customers for services like water, electricity, or natural gas. A fair rate of return in investments indicates that the risk is justified.
Fair Trade – a cooperative movement that seeks to purchase and market goods that guarantee that those who generate them get a fair price, work in an environment that is recognised internationally, are given a respectable income, receive training, and have their standard of living and quality of life improved. Making sure that international trade is done on an even playing field without unfairly favouring one party or country through subsidies, taxes, or quotas is another definition of fair trade.
Fair Value – the price that makes both the buyer and seller happy. In other words, both parties enter the transaction willingly and pleased with the price. We also use the term in accounting in disputes involving assets or liabilities.
Fallacy of Composition – emerges when we believe that what holds true for a small portion of something also holds true for the entire item. For instance, I am aware that standing up will provide me a better view if I am attending a sporting event at a stadium. I would be wrong if I assumed that if everyone stood up, we would all have a better view. My presumption would be a compositional error.
Fat Cat – a derogatory term for either a rich person with influence or a major contributor to a political party. In the UK, fat cats are overpaid executives, i.e., their bonuses do not reflect their performance.
Fat Man Strategy – a strategy to thwart an unfriendly takeover attempt by a predatory firm. The corporate raider buys into a company or asset that the target corporation purchases. It might also accrue more debt. It consequently seems fatty and bloated, which is undesirable.
FBI (Federal Bureau of Investigation) – America’s domestic intelligence and security service. It is a federal level organization that focuses on law enforcement and investigating criminal activity across the country.
F-Commerce – is the term used to describe the buying and selling of products and services on a Facebook page. Similar in definition, social commerce refers to buying and selling on any social media platform. F-commerce got off to a poor start, with several retailers closing their Facebook shops within a year. It then took off once again and seems destined to become a significant trading platform.
FDA (Food and Drug Administration) – the organisation in charge of regulating drugs, medical devices, food, cosmetics, and tobacco in the United States. An FDA approval is required before a pharmaceutical company can launch a new medicine. This process takes a while.
Feasibility Study – an assessment of a proposed project to determine its viability and whether it should move further. The technical, financial, and operational viability of the project are examined in the study. It is customary to do a feasibility assessment before moving forward whenever significant financial stakes are involved.
Feasible Portfolio – a pool of investments that can realistically be put together, given all available alternatives, that an investor can buy, according to his or her investment goals, capital resources limits, and tolerance for risk.
Feather One’s Nest – to take advantage of a situation, one’s position, or information to get rich. It is a derogatory term that means the same as ‘to line one’s pockets.’ The action does not necessary have to be illegal, but people see it as unethical.
Features – what makes a product or service what it is. When we discuss a product’s attributes, we describe what it is like, including its size, colour, weight, and other characteristics. However, customer attention is skewed more toward benefits than features. A lot of individuals are unaware of the distinction between features and benefits. That can be a costly error in business.
Federal Home Loan Mortgage Corporation – a US government corporation that trades in mortgages on financial markets in order to raise money to lend to home buyers. Also known as Freddie Mac.
Federal National Mortgage Association – colloquially known as Fannie Mae, it is a a government-sponsored enterprise (GSE) that buys and guarantees mortgages that comply with its funding criteria. It guarantees mortgage payments, even if borrowers default.
Federal Open Market Committee – known commonly by its abbreviation FOMC, is a 12-member committee within the Federal Reserve System that sets US monetary policy, including the discount rate and Fed funds target.
Federal Reserve System – commonly known as the Federal Reserve (or simply the ‘Fed’). It is the central banking system of the United States of America.
Fertility Rate – the typical number of offspring (babies) that each female has while she is fertile. The reproductive years of a woman last from about 15 to 49 years of age. If there is little immigration or emigration, a nation’s fertility rate should be 2.1 to sustain its population.
FF&E – represents Furnishings, Fixtures, and Equipment. The phrase refers to moveable objects inside a home or structure that aren’t attached to it permanently. Additionally, FF&E goods are not connected to any utilities. Items of FF&E include things like chairs, tables, computers, water coolers, and photocopiers.
Fiat Money – money that is recognised as legal tender by the government. Fiat money has no inherent value, and neither the metal nor the paper it is written on have any value. Contrarily, commodity money has intrinsic worth. Commodity money includes gold coins. Today, fiat money is used by most nations.
FICO Score – a metric (number) that banks and other lenders use to measure a loan applicant’s creditworthiness. The FICO Score is used by more than ninety-percent of US lenders when deciding whether to lend a consumer money.
Fill or Kill Order (FKO) – an order to buy a considerable amount of stock – the broker is instructed buy straightaway or cancel the order (kill it).
Fill Rate – the percentage or proportion of customer orders that a company can deliver from stock at hand without back orders or loss of sales. Companies should aim for a fill rate of 100%.
Final Consumer – the term has two possible meanings. 1. The person or entity that consumes or uses a product or service, i.e., the ultimate consumer. 2. An advertising strategy that targets the final consumer.
Final Good – a product that the final consumer or ultimate consumer consumes. A final good is a consumer good. Unlike intermediate goods, we do not use final goods in the production of something else.
Finance – a set of activities related to the trading of capital assets between multiple entities. Finance is different from economics, which also includes also the production, consumption and distribution of services.
Finances – apart from being the plural of ‘finance,’ the term refers to the money that people, businesses, organizations, and governments earn and spend. Your ‘finances’ refers to your financial state, i.e., whether you are managing, struggling, etc.
Financial – the adverb of the word or noun finance. Financial refers to matters involving money or finances. Financials refers to shares of banks and other financial institutions in the realm of investment. You might hear someone remark, “Invest in financials instead of computer equities; they are performing well.”
Financial Activities – all activities involving the movement of money. Buying, selling, transferring money, for example, are financial activities. Financial activities include all the inflows and outflows of cash.
Financial Adviser – a person who provides clients with advice on how to manage their finances. They also suggest investment options, such as stocks and shares, bonds, and other financial instruments.
Financial Analysis – an assessment of a project, company, or any entity regarding its stability, viability, solvency, and profitability. Before making a major business decision or investing in a project, it is common to carry out a financial analysis.
Financial Assets – intangible assets including stocks (shares), bonds and bank deposits. The value of a financial asset is derived from a contractual claim of what it represents. Unlike tangible assets (e.g. real estate), they are not physical.
Financial Assistance – any type of monetary aid or help. Subsidies, tax allowances, and cost-sharing arrangements are examples of financial assistance. Welfare payments, bailouts, and loans are also forms of financial assistance.
Financial Attributes – factors of a company that show us how healthy it is financially. The parameters suggest how well or badly the business is faring and whether it is in good shape.
Financial Center – a district or city with a large concentration of financial institutions and a well-established commercial and communications infrastructure is referred to as a financial hub. Large amounts of domestic and international trading transactions are carried out in financial centres. The three biggest financial hubs in the world are London, New York, and Tokyo.
Financial Commitment – 1. An agreement to pay a specific sum of money on a particular future date. 2. To take on financial obligation for something at a future date. 3. To consistently pay someone or something over a predetermined time. The phrase can be applied to obligations with short, medium, and long terms.
Financial Incentive – a financial incentive to persuade individuals to act in a particular manner. Financial inducements come in the form of compensation, commissions, bonuses, profit-sharing plans, stock options, and tax advantages. In particular, monetary rewards promote acts or conduct that wouldn’t have happened without them.
Financial Instrument – a financial agreement between two parties. Financial instruments can be created, traded, modified, and settled. They could serve as proof of ownership or legal claims to money. Financial instruments include securities and derivatives.
Financial Management – involves the planning, monitoring, organizing, directing, and controlling of a company’s, organization’s, or client’s monetary resources. The aim is to make sure that the business achieves its goals and objectives.
Financial Market – a market where traders buy and sell financial securities, foreign exchange, commodities, and other fungible items. Banks, insurance companies, pension funds, and other financial institutions form part of the financial markets.
Financial Ratios – several ratios using data from a company’s financial statement that compare its performance and ability to pay off short- and long-term debts. Also known as accounting ratios.
Fintech – abbreviation for financial technology The phrase describes contemporary software and other technologies that have revolutionised the banking and finance industries. This category includes inventions like blockchain, internet banking, digital wallets, and cryptocurrency.
Firm – a business or any other organisation that, for the purpose of making money, purchases and resells products or services to consumers. Partnerships, public limited companies, sole proprietorships, and limited liability companies are a few types of businesses. Firms are the most common term for partnerships in law, accounting, or consulting (not companies).
First-mover advantage – is a word used in marketing strategy when the advantage is acquired by the early significant occupant of a market segment, i.e., the first to launch a new type of product or service. It is also known as FMA. likewise known as technological leadership. The market share of the first mover can grow quickly and significantly, and with it come large profits, customer loyalty, brand awareness, and position as a near monopoly. But not all first movers are successful; occasionally they fall short, leaving the money to the second or third movers.
Fiscal – related to government revenue, i.e., taxes, public spending, and government borrowing. Therefore, a ‘fiscal issue’ is a ‘government finance issue.’
Fiscal Drag – an automatic brake used in a progressive tax system on a fast expanding economy. Many people find themselves in higher income brackets when their salaries rise. As a result, tax liabilities grow. The result is a decrease in or a slowdown in spending.
Fiscal Policy – refers to taxation and spending by the government. A sluggish economy can be stimulated through an expansionary fiscal policy, whereas a contractionary fiscal policy is employed to either slow the economy down or pay down the nation’s debt. While central banks are concerned with monetary policy, governments deal with fiscal policy.
Fiscal Stimulus – government action to boost the economy that may involve either tax cuts or greater spending. Left-leaning parties favor boosting public spending while right-leaning parties favor tax cuts.
Fiscal Year – also known as a financial year, it is the 12-month-period that an entity uses for calculating and disclosing annual financial statements. The fiscal year may not be the same as the calendar year (Jan 1 to Dec 31).
Fiscalist – somebody who believes that government spending and methods of raising revenue, i.e., fiscal policy, are vital in economic regulation. Fiscalists contrast with monetarists, who warn that fiscal policies often lead to high inflation and economic decline.
Five Forces – the five external factors that tell us how viable an industry is for a company. In other words, how profitable it is likely to be. We also call them Porter’s Five Forces. The forces are customers, existing competitors, new competitors, suppliers, and substitute products.
Five W’s of Communication – five words beginning with the letter ‘W’ that we should focus on when communicating. They are WHO, says WHAT, in WHICH channel, to WHOM, and with WHAT effect? In public relations, ‘effect’ may refer to ‘feedback.’
Fixed Assets – assets that help a company produce things and earn income. Fixed assets cannot be converted into cash easily. Examples include PP&E (property, plant & equipment), vehicles, etc. We use fixed capital to purchase fixed assets.
Fixed Capital – the money that people invest in fixed assets, i.e., equipment, land, buildings, vehicles, etc. We also use the term ‘fixed investment.’
Fixed Costs – costs that do not change according to output or sales volume levels. They are the opposite of variable costs. Examples of fixed costs include rent, utilities and insurance premiums.
Fixed Exchange Rate – a system where the government or central bank attempts to peg its currency to gold, a basket of other currencies, or another precious metal. The system stands in contrast to a floating exchange rate, where the value of the currency is determined by market forces.
Fixed-Rate Mortgage – The monthly mortgage payments don’t alter because the interest rate is “fixed” for a predetermined amount of time, which can be up to thirty years. Homes with limited resources and those who wish to prepare ahead of time frequently employ this form of mortgage.
Flea Market – an outdoor market with stalls that sell old furniture, antiques, second hand items, etc. Most of them are outdoors. However, some may be in a warehouse or school gym. Britons call a flea market a ‘car boot sale.’
Flesch Formula – a formula that indicates how simple or complex a document is to read and comprehend. The easier it is to read and comprehend, the better the score. The Flesch Readability Score, Flesch Rate, or Flesch Reading Ease Formula are other names for it. The Formula was developed in the 1940s by Austrian-American readability specialist Rudolf Flesch.
Flexible Budget – a budget (financial plan) that fluctuates in line with a business’s or a department’s needs. In other words, the size of the budget fluctuates in line with changes in the department’s or company’s variable costs. The budget increases as they increase. The budget, however, decreases as they do.
Flexible Factory – a production facility that can quickly change from producing one thing to producing something else. It can do this with the minimum of downtime. Many car factories are flexible factories.
Flexible Firm Model – a management or organizational technique that segments employees into different groups, i.e., core and peripheral groups. The Model uses different forms of flexibility to optimize the use of human resources.
Flexible Pricing – a strategy that allows buyers and sellers to negotiate the final price of a good or service. Some businesses benefit from flexible pricing, especially sellers of perishable goods. Most consumer like to be able to influence prices.
Flexible Schedule – an alternative to the nine to five working day that has previously been the norm. It serves as a substitute for the forty-hour workweek. People today may work from almost anywhere thanks to current communications tools like the Internet, the cloud, emails, and others. This implies that they have more flexibility in their employment than their parents or grandparents had.
Flexible Specialization – a strategy that some businesses use to remain competitive. They employ multi-skilled workers and have multi-use equipment and machinery. They are then ready to adapt to any changes in the marketplace.
Flexible Staffing – an alternative to permanent staffing, i.e., an alternative to having permanent employees. The employer uses part-time workers, temporary employees, or independent contractors.
Flexible Workforce – the word can mean two things: 1. A workforce that includes numerous people with a variety of talents. When someone is absent or develops ill, they may readily fill in. 2. A workforce whose size changes depending on the demands of the business. The workforce expands when sales increase. There is a reduction in the staff as sales drop.
Flexible working – a general term for working patterns that vary from the traditional nine-to-five, Monday-to-Friday office job. The patterns typically vary by location of work, number of hours, and start and finish times.
Flexitime – a scheme whereby workers can vary the start and finish of their working day within certain limits. Most systems comprise a fixed core time with flexibility to vary the beginning and end of the day outside of the core.
Flight Capital – the cash involved in a capital flight out of a nation. Flight capital is the actual money, whereas capital flight is the occurrence. People transfer money out of a country for many different reasons. They might no longer have faith in the economy.
Flight to Quality – the widespread switching of investments from high-risk to low-risk assets. The yield on the high risk assets is higher than the yield on the low risk ones. It is a herd-like shift to flee to quality or safety. It can be the outcome of extremely negative news, such a bank or corporate failure.
Flighting – a marketing tactic where the marketer runs a lot of advertisements during one time frame and none during the next. Flighting is more prevalent in small businesses with constrained marketing costs. Additionally, seasonal product or service vendors often use it.
Flipping – buying something at a low price and selling it quickly at a high price. It is a form of speculation, but the speculator moves quickly. We can use the term for shares, commodities, real estate, cars, and many other items.
Floating Exchange Rate – an exchange rate where the Forex market, based on supply and demand, sets the price of a currency. The currency’s price is not fixed by the government, i.e., it is not pegged to another currency or precious metal.
Fluoridation – adding fluoride to drinking water to protect people’s teeth from decay. We also use the term ‘fluoridation of drinking water.’ If you add fluoride to drinking water, the incidence of tooth decay and cavities declines significantly.
Fluorocarbons (FCs) – Fluorine and carbon-containing substances. Perfluorocarbons, or PFCs, is another name for them. They are employed in the production of aerosol propellants, coolants, oils, and greases. Fluorocarbon use is currently either forbidden or constrained in order to maintain the ozone layer.
FMEA (Failure Mode and Effects Analysis) – a methodical procedure for identifying potential flaws in a procedure, system, service, or product. The phrase can be used in a concrete or figurative manner. The strategy considers every failure and its distinct repercussions. Then, we consider them all at once to determine what the overall effects are currently or may become in the future.
Focused Factory – a factory that is not flexible, i.e., it cannot easily switch from making one thing to making something else. It contrasts with a flexible factory.
Focused Fund – a mutual fund that invests in a very limited number of companies and sectors. It contrasts with a diversified fund, which invests in a wide range of sectors and many different companies. Focused funds tend to be riskier than diversified funds.
Focus Group – a group of five to fifteen people who talk about specific themes as part of a market research project. A focus group could also be a brainstorming group, i.e., a group of people who get together to try to solve a problem.
Food Additives – functional substances that we add to food. Food additives may improve a food’s taste, color, texture, or consistency. Other additives may extend a food’s shelf life.
Food Biotechnology – the use of technology to change or modify the DNA of the food sources (plants and animals) that we consume. We can increase crop yields and create disease-resistant plants thanks to food biotechnology. Today’s fruits and vegetables are generally more nutrient-dense because of food engineering.
Food Chain – a series of organisms that depend on each other to stay alive, i.e., as sources of food. Plants are at the bottom of the chain. Human, lions, eagles, and sharks, for example, are at the top.
Food Contaminant – a foreign object, organism, microorganism, or chemical that makes food unfit for human consumption. The term usually refers to the accidental contamination of food.
Foodborne Illness – an illness caused by something we ate or drank. We also call it a foodborne disease or food poisoning. Bacteria, viruses, fungi, parasites, and poisons, for example, can contaminate food. If we eat that food, we can get a foodborne illness.
Food Stamps – an American federal assistance program for low income individuals and their families. It is a nutrition program. Its official name is SNAP. SNAP stands for Supplemental Nutritional Assistance Program.
Footfall – 1. The number of people entering a shop or shopping mall per hour, day, week, month, etc. 2. The sound of footsteps. For retailers, footfall is an extremely important metric.
Foot Traffic – the number of people walking in a given area, i.e., pedestrian activity. Foot traffic matters more for shops than law practices. A shoe shop, for example, gets more business from pedestrians walking in off the street than a law practice does.
Forbearance – a special agreement in which a borrower who is falling behind on payments gets extra time to catch up. The lender postpones foreclosure, i.e. puts off seizing the borrower’s asset.
Force Majeure – unforeseeable events or circumstances that prevent a party in a contract from fulfilling its obligation. Examples include earthquakes, tsunamis, war, new legislation, riots, or strikes.
Forced Distribution – a system for evaluating worker performance. The forced distribution approach and stacked ranking are other names for it. It is a highly common strategy used by businesses. Employee performance is rated by managers and supervisors using three or four categories.
Forecasting – a planning technique used by business managers and directors, economists, investors, and government agencies in an effort to manage future uncertainty. The analysis of trends and historical and present data are the key sources of information used in forecasting. Several distinct forecasting techniques exist.
Foreclosure – occurs when a borrower defaults and the lender demands he or she sells an asset (such as a house) in order to pay back a loan.
Foreign Policy – how a government deals with other nations, i.e., its plan of action. We also call it foreign relations or foreign affairs policy. It includes such matter as defense and trade. Its main goal is to protect the country’s citizens both while they are at home and abroad.
Foreign Reserves – foreign currency that a central bank holds. Its main aim is to defend the local currency and stabilize the economy. Most foreign reserves consists of hard currencies such as the US dollar, pound sterling, euro, and Swiss franc.
Forensic – 1. (Adjective) related to courts of law or used in courts. 2. (Adjective) suitable for discussion or public debate. 3. (Adjective) applying technical or scientific knowledge to legal problems. 4. (Noun) scientific tests or techniques people use to try to solve crimes. In this case, we often use the plural form, i.e., forensics.
Forensic Accounting – the use of accounting knowledge to assess if unlawful behaviour has occurred. We also use the terms “forensic audit,” “forensic auditing,” and “forensic accounting.” The financial world’s detectives are forensic accountants.
Forensic Engineering – applying engineering knowledge to find out why something failed or went wrong. The forensic engineer often uses reverse engineering to determine why a structure, machine, component, or material failed.
Forensic Medicine – a branch of medicine that deals with the application of medical knowledge to determine what happened to somebody who died. We also call it forensic pathology.
Forensic Science – the process of using science to determine what went wrong and why. When a bridge collapses or someone dies, forensic experts try to figure out why. Authorities dispatch forensic accountants when fraud is suspected. To find out things like the cause of death, forensic pathologists do autopsies.
Forex – also known as the foreign exchange market, it is the international market for trading currencies. The abbreviation for ‘foreign exchange’ is ‘Forex’.
For-Profit Organization – an organization or company whose principal goal is to generate profit. It contrasts with a not-for-profit organization. For-profit organizations are a crucial part of a free-market economy. Successful ones have greater revenue than costs.
Fossil Fuels – crude oil (petroleum), natural gas, and coal. Fossil fuels consist of decayed animals and plants. It is a long process that takes millions of years.
Fractional Reserve Banking – occurs when a bank has reserves that are less than the amount deposited by its customers. It is what makes the money supply grow.
Franchise – an agreement under which the franchisor (company owner) grants the franchisee the authority to market and sell the franchisor’s products or services and to utilise the franchisor’s brand and operating procedures. The rights to a certain region can occasionally be granted to the franchisee.
Fraud – occurs when somebody uses deception, dishonesty, or tricks to gain money or property. Fraud is illegal. Somebody who engages in fraudulent activity is a fraudster. It is typically a white-collar crime, i.e., an office-based crime.
Free Market – an economy where the purchasing and selling of goods and services are not under the control of the government. Individuals and businesses can buy and sell freely. Also known as an open market.
Freight– products and merchandise that are transported by land, sea, or air. The term may also refer to the cost of shipping/delivery. Cargo today means the same as freight. We can also use freight as a verb and adjective.
Frictional Unemployment – is made up of folks looking for their perfect job who are currently unemployed and attending interviews. Frictional unemployment is higher when employment is close to capacity because people take more time to go to interviews and consider if the offers they receive are truly what they want. Frictional unemployment decreases swiftly when unemployment is high because people are less picky and seek to find work as soon as possible, even if it is not perfect.
Fungible – refers to a commodity that can be traded for another good or service. I can exchange a $10 dollar for another $10 bill, two $5 bills, or ten $1 bills, for instance. Items that can be freely exchanged for or replaced by another of the exact same or extremely close type are referred to as fungible. Pure gold is fungible, meaning that two bars of the same weight or an identical bar can be used in place of one bar. The noun fungibility is the adjective fungible.
Futurology – a study of future possibility by carefully analyzing both present and historical trends. Futurists predict alternative futures. We also call it future studies.
Futures Contract – a contract to exchange a specified security (of a specific quantity) for a price that is determined on the day the contract is created for delivery and payment on a future date. Futures contracts are appealing for those seeking price stability.
Futures Market – a market where people buy and sell futures contracts and commodities. There are many across the world. The largest is the Chicago Mercantile Exchange (CME). We also call it a Futures Exchange.
FYI – abbreviation of For Your Information. We pronounce the abbreviation /ɛfwaɪˈaɪ/. We use it in e-mails, memos, and informal messages. The information within the message is not urgent, i.e., the receiver does not need to take urgent action.