The right to sell an ownership interest to another party who acquires all of the seller's rights, without permission from others. This is a characteristic of corporate stock, though not of restricted stock, as contrasted with a partnership interest.
Indirect supervision of subordinates, form of management supervision that allows others to function on their own without extensive direct supervision. People are allowed to prove themselves based upon accomplishments rather than meeting specific supervisory criteria.
The Freedom of Information Act (FOIA) is a federal law that provides the public with the right to request access to records from any federal agency. It is often described as the law that keeps citizens in the know about their government.
The Freedom of Information Act (FOIA) is a federal law that mandates the disclosure of documents and materials generated or held by federal agencies to the public, subject to specified exemptions including issues related to national security.
A type of estate in land where ownership is held in fee simple, giving the owner complete and indefinite ownership of the property.
A freehold estate is an estate in land of uncertain duration, encompassing both estate in fee and a life estate. This term describes rights in land ownership that are free from any rent or leasehold obligations.
Computer software that is distributed at no cost, typically over the Internet, allowing users to use, test, and provide feedback or improvements. Unlike shareware, freeware is fully functional without requiring payment.
A multiple-lane divided highway with fully controlled access, usually involving interchanges for intersecting roads, designed for high-speed vehicular traffic and typically without toll charges.
A court order preventing a defendant from dealing with specified assets to ensure that any judgment given against them will not be rendered ineffectual by their disposal or dissipation of those assets.
A freight forwarder, also known as a forwarding company, acts as an intermediary between a shipper and various transportation services, facilitating the global movement of goods while managing logistics and documentation.
Freight insurance provides coverage for goods during shipment on a common carrier, ensuring protection against potential losses or damages during transit.
Frequency refers to the number of times an event or occurrence happens within a specified period, applicable in various contexts such as advertising, communications, and general activities.
A frequency diagram is a type of bar diagram that illustrates how many observations fall within each category. It is a fundamental tool in statistics for data visualization.
Frequently Asked Questions (FAQ) serve as a resource where common questions regarding a particular topic are compiled and answered, ensuring users can easily find essential information without having to ask repeatedly.
Frictional unemployment is a form of unemployment that occurs naturally within an economy, caused by individuals transitioning between jobs, relocating, and altering their economic activities. It is considered a normal and unavoidable aspect of the labor market.
The term 'friendly fire' has dual meanings: one in the context of intentional, contained fires for practical use and another in a military context where individuals are accidentally harmed by their own allies.
A non-profit-making mutual company registered under the Friendly Society Acts (1896-1955), offering personal assurance and insurance benefits.
A Friendly Suit is an action authorized by law, brought by agreement between the parties, to secure a judgment that will have a binding effect in cases where an agreement or settlement would not.
A friendly takeover occurs when the management and board of directors of the target company are in agreement with the acquisition and recommend that shareholders approve the offer.
Non-monetary benefits offered to the employees of a company in addition to their wages or salaries, and benefits provided to shareholders beyond dividends.
A frivolous lawsuit is a legal claim presented in court without substantial grounds or factual support. Such claims are considered a waste of judicial resources and can result in penalties for the party who files them.
A frivolous tax position is one that is knowingly advanced in bad faith and is patently improper, often with the intent to delay or avoid tax obligations without any legitimate basis.
A standard measurement of land, applied at the frontage of its street line. It is used for lots of generally uniform depth in downtown areas.
Cash necessary to start a project. Front money is generally required for purchasing a site, preparing plans and studies, obtaining permits, and securing loan commitments.
The front office refers to the offices of the major executives within a company; it is the nucleus of the operational management center, often located near the entrance of the organization.
A charge levied by a lender when a loan is set up or when the first payment of the loan is taken.
A front-end load is an initial sales charge or commission incurred by an investor when buying a financial product, used to cover administration fees and agent commissions.
Frontage refers to the linear distance of a piece of land along a body of water, street, or highway. Properties with frontage are often valued based on the rate per front foot, which can significantly influence their market price.
A frozen account refers to a bank account from which funds may not be withdrawn until a lien is satisfied or a court order is received freeing the balance. This situation can occur due to legal issues such as disputes over the ownership of property.
Assets that, for one reason or another, cannot be used or realized. This might occur due to government restrictions, legal actions, or sanctions, preventing their liquidity or transfer.
FRS 102 sets the standard for accounting principles and practices for small to medium-sized enterprises in the UK and Republic of Ireland, aiming to simplify reporting requirements and enhance financial transparency.
Frustration of Contract refers to the termination of a contract due to an unforeseen event that renders its performance impossible, illegal, or radically different from what was initially agreed.
The FTSE 100, widely known as the Footsie, is a major market capitalization-weighted index consisting of 100 blue-chip stocks listed on the London Stock Exchange, commonly referenced for gauging the performance of leading companies in the UK.
The FTSE Indexes are a series of stock market indices created by the Financial Times and the London Stock Exchange to measure the performance of companies listed on the London Stock Exchange.
A comprehensive overview of FTSE Indexes, including their types, historical significance, and relevance to investors and portfolio managers.
Fulfillment encompasses the processes necessary to receive, service, and track orders sold via direct marketing. It includes various systems tailored to specific product types and services, such as subscriptions, book club memberships, continuities, catalog merchandise, and fund raising efforts.
Full absorption costing, also known as absorption costing, is a method of accounting that captures all direct and indirect manufacturing expenses when determining the cost of the final product.
Full consolidation is a method in which 100% of each item of all subsidiary undertakings is incorporated into the consolidated financial statements of a group, even when the parent company does not own 100% of a subsidiary.
Full cost pricing is a method of setting the selling prices of a product or service that ensures the price is based on all the costs likely to be incurred in its supply.
Full costing, also known as absorption costing, is an accounting method where all fixed and variable manufacturing costs are considered to be product costs.
The Full Costing Method is an extensive approach in accounting that includes all the costs associated with producing a product or service, encompassing both direct costs and overheads allocated to the cost unit.
In the context of insurance, full coverage refers to an insurance policy that covers all insured losses in full, without leaving the policyholder responsible for any out-of-pocket expenses related to a covered event.
Full Disclosure refers to the obligation to release all material information pertinent to a transaction, especially in the context of securities where public information requirements are regulated.
In computer usage, full duplex refers to the transmission of data in two directions simultaneously, allowing for more efficient communication.
Full employment is a rate of employment defined by government economists to take into account the percentage of unemployed individuals who would not be employed regardless of the nation's economy. It is currently considered to be at 5.2% unemployment.
Full faith and credit refer to the comprehensive commitment of a government entity to use its taxing and borrowing power and other revenue sources to ensure the payment of interest and principal on its issued bonds.
The age at which a Social Security beneficiary can receive full Social Security retirement benefits. It is defined by the Social Security Act of 1935 and its amendments, particularly the 1983 amendment which adjusted full retirement ages based on date of birth.
Full-cost transfer prices are internal pricing strategies where transfer prices are set based on full cost pricing but do not include a profit margin for the supplying division. This method is widely used but can lead to issues if cost information is inaccurate.
A full-service broker is a financial professional who offers a wide range of services to clients, including investment advice, research, and portfolio management. This contrasts with a discount broker, who typically only executes trades.
A fully amortized loan is one in which payments of both interest and principal are made regularly according to a set schedule, which are sufficient to liquidate the loan over its term; it is essentially self-liquidating.
A term used in accounting to describe a fixed asset to which all allowable depreciation has been charged according to accounting or tax laws. The asset is carried on the books at its residual value, although its market value may be higher or lower.
A figure showing earnings per common share after assuming the exercise of all outstanding warrants and stock options, and the conversion of convertible bonds and preferred stock, all potentially dilutive securities.
Fully Diluted Earnings Per Share (EPS) for a company that takes into account not only the number of shares in issue but also those that may be issued as a result of such factors as convertible loans, options, or warrants. International Accounting Standard 33 requires that diluted earnings per share be disclosed on the face of the profit and loss account as well as basic earnings per share. The US equivalent is primary earnings per share.
A Fully Paid Policy is a type of limited pay whole life insurance policy under which all premium payments have been made. This status indicates that no further premium payments are required, yet the policy remains active for the life of the insured.
A Fully Paid Share is a share on which the full nominal or par value has been paid by the shareholder, including any premium. Such shares denote that the shareholder has no further financial obligation towards the company concerning the initial capital amount.
This technique involves collecting the costs of an organization by function and presenting them to the functional management in operating statements on a regular basis.
A function in accounting refers to a specific section or department of an organization that carries out discrete activities managed by a director or manager. Functional budgets are often created for these sections. Examples include production, sales, finance, and personnel.
Functional Authority refers to the ability of staff members to initiate and veto actions in their area of expertise, allowing decisions to be directly implemented by those with specialized knowledge. Common areas include accounting, labor relations, and employment testing.
A functional budget is a financial or quantitative statement prepared for a specific function of an organization. It summarizes the policies and the expected level of performance to be achieved by that function over a budget period.
The currency of the immediate economic environment in which an entity operates, i.e. the one in which it earns and spends cash and which chiefly determines its costs and prices. This will sometimes differ from the currency in which its accounts are presented (the presentation currency), especially where the entity is part of a multinational group.
Functional obsolescence refers to the decline in a property's value due to changes in design, style, or technology that make the property less desirable in the eyes of buyers or tenants.
A structure of an organization based on functional performance; organizational departments created to fulfill organizational functions such as marketing, finance, and personnel. This type of organization has characteristics of both line and staff functions.
A fund refers to a pool of financial resources managed and set aside for a specific purpose. Common types of funds include mutual funds, pension funds, and endowment funds, among others.
Fund accounting is a system used by nonprofit organizations and governments to track resources and ensure accountability and compliance with legal requirements, rather than focusing on profitability.
A fund family, also known as a family of funds, is a group of mutual funds offered by the same investment company that share similar investment objectives, management, and administrative structures.
A Fund of Funds (FoF) is a mutual fund or hedge fund that invests in a portfolio consisting of other investment funds rather than investing directly in stocks, bonds, or other securities. This investment strategy provides enhanced diversification and the potential for reduced risk by spreading investments across multiple fund managers and asset classes.
Fund raising involves efforts to solicit contributions from individuals or organizations for nonprofit entities with educational, medical, religious, political, charitable, or other stated purposes.
Fund switching refers to the process of moving money from one mutual fund to another within the same fund family, often to respond to market fluctuations or changing financial needs.
Fundamental accounting concepts are the core principles that underpin the practice of accountancy, shaping the integrity, consistency, and efficiency of financial reporting.
Fundamental analysis involves evaluating a company's financial statements, health, competitors, and markets to assess the intrinsic value of its stock. This method helps determine whether a stock is undervalued or overvalued.
A material mistake or omission from the accounts of a business, which is not a recurring adjustment or the correction of an accounting estimate made in a prior period.
Funded debt refers to debt that is due after one year and is formalized by the issuing of bonds or long-term notes. It often involves a sinking fund to ensure the debt can be retired systematically.
A funded pension plan is a type of retirement plan where funds are currently allocated to purchase future retirement benefits, ensuring that employees receive retirement payments even if the employer is no longer in business at the time of retirement.
A funded pension scheme is a retirement plan that pays benefits to retirees from a fund that is actively invested in securities. The returns generated by this fund are distributed as pensions to its members.
A funded retirement plan is a type of retirement savings arrangement where contributions are made to a dedicated fund to provide future retirement benefits.
Funding is the act or process of providing financial resources, typically in the form of money, to finance a program, project, or organization. Funding is critical across various sectors for initiating and sustaining operations and achieving objectives.
A funds flow statement provides a detailed analysis of the changes in a company's working capital during a specific period, detailing the sources and applications of funds.
Funds from operations (FFO) is a financial performance metric primarily used by real estate investment trusts (REITs) to define the cash generated by their operations. It specifically excludes the depreciation and amortization that obscures the actual cash earnings of these types of entities. FFO is essential to assess a REIT’s capability to pay dividends to its shareholders.
Funds From Operations (FFO) is a key measure used to determine the profitability and performance of a Real Estate Investment Trust (REIT).
A fungible issue refers to a bond or security that can be interchanged with another of the same class, offering benefits such as consistent documentation and an increased market depth.
Interchangeable goods, securities, etc., that allow one to be replaced by another without loss of value. Bearer bonds and banknotes are notable examples. Additionally, perishable goods whose quantity can be estimated by number or weight fall under this category.
A furlough is a temporary leave of absence from an organization, typically granted to employees for a specified period, often without pay. Furloughs can be used for various reasons, including economic downturns, training, or personal necessity.
Domestic accommodation available for letting for at least 140 days each year and actually let for at least 70 days. Each letting during a seven-month period of the year must also be for less than 31 days. When this arithmetical definition is satisfied, the income arising is treated as if it were trading income. Loss relief is available, pension contributions can be made on the basis of the letting income, and the income qualifies as earned income.
Furniture, Fixtures, and Equipment (FF&E) are tangible assets that businesses use to enrich their operations. Unlike real property, these items are typically moveable and are not permanently affixed to buildings.
Furniture, fixtures, and equipment (FF&E) are movable assets essential to the operation of a business, often found in hospitality industries such as hotels and motels. These items typically wear out faster than other properties, necessitating detailed management of their condition, cost, and replacement frequency.
Future Interest refers to an individual’s legal right to possess or enjoy property or assets in the future, usually upon the occurrence of a specified event or the fulfillment of certain conditions.
The future value is the value that a sum of money will have in the future when invested at compound interest. If the future value is *F*, and the present value is *P*, at an annual interest rate *r*, compounded annually for *n* years, the formula is *F = P*(1 + r)^n. This concept is crucial for understanding the growth of investments over time.
Future Worth, also known as the Future Value (FV), refers to the amount of money that an investment made today will grow to at a specific point in the future when interest is compounded over time.
In financial mathematics, the future worth (or value) of one per period, also known as the compound amount of one per period, is the amount of money that an investment of one monetary unit will grow to after a certain number of periods at a constant rate of interest.
A futures contract is a standardized legal agreement to buy or sell a particular commodity, currency, or financial instrument at a predetermined price at a specified time in the future. Unlike options, futures contracts entail a mandatory obligation to execute the transaction.
A futures market is a financial exchange where futures contracts, which are agreements to buy or sell specific commodities or financial instruments at a predetermined future date and price, are traded.
A futures option is a derivatives contract that grants the holder the right, but not the obligation, to buy or sell a futures contract at a predetermined price before the option expires.
A futures transaction refers to the buying and selling of futures contracts on commodities or financial instruments, which obligate the buyer to purchase or the seller to sell an asset at a predetermined future date and price.
Fuzzy logic is a system of computer instructions enabling computers to deal with ambiguities, emulating human-like decision-making processes.
FX, or Foreign Exchange, refers to the global market where currencies are traded. It is one of the most liquid and largest financial markets in the world, encompassing all aspects of trading, buying, selling, and exchanging currencies at current or determined prices.
An indicative quote is a price provided to a client as a guide to current market prices. It is not a firm offer to buy or sell at the quoted price.
A legal form is a structured model of a legal document that contains the necessary phrases and words of art required to ensure the document is procedurally correct in accordance with legal standards. The meticulous arrangement of such forms serves as a template for drafting legally binding documents such as contracts, wills, or pleadings, ensuring their compliance with specific legal requirements and formalities.
The Right of First Refusal (ROFR) is a contractual right that gives its holder the option to enter into a business transaction with the owner of an asset before the owner is entitled to enter into that transaction with a third party.
A Tenant Finish-Out Allowance, also known as a Tenant Improvement Allowance, is a sum of money provided by a landlord to a tenant for the purpose of customizing and improving the leased space to meet the tenant’s needs.
