A firm offer is a contractual proposal to sell goods that remains in effect for a specific period. If the buyer accepts the offer within this period, the seller is obligated to sell the goods.
A firm order is an instruction given to a broker to execute a transaction at specific terms that remains valid for a stated period or until cancelled.
A firm quote is a specific type of bid or offer price for a security, typically stated by a market maker, that is binding and not identified as nominal or subject to further negotiation or review.
First Call is a financial service network historically used by institutional investors, financial analysts, and corporate executives for timely and accurate earnings estimates and financial data.
A method of inventory valuation in which cost of goods sold is charged with the cost of raw materials, semi-finished goods, and finished goods purchased 'first.' Under FIFO, the inventory contains the most recently purchased materials, and in times of rapid inflation, FIFO can inflate profits.
A first lien is a legal right or claim against a property that is recorded before other liens or claims. It takes precedence over any subsequent liens in the event of foreclosure.
A first mortgage is a primary loan that has priority as a lien over all other mortgages. In cases of foreclosure, the first mortgage will be satisfied before other mortgages.
A first mortgage debenture is a type of debenture that holds the first charge over property owned by a company, often utilized by property companies to secure financing.
First-Class Mail is a class of mail service that ensures rapid handling, delivery, free forwarding, and is not subject to opening for postal inspection. This service is generally used for sending letters, postcards, bills, and personal correspondence.
A method of valuing raw materials or finished goods by using the earliest unit value for pricing issued items until all stock received at that price has been used up. This method is significant in inventory management and accounting, ensuring a logical and often tax-efficient way to evaluate inventory costs.
Supervisors on an organizational level immediately above non-managerial workers. First-line managers primarily oversee performance on line tasks. Some typical titles associated with supervisory positions are foreman, shift boss, sergeant, section head, and ward nurse.
A first-tier market is the main trading platform for the equity of large, established companies, characterized by high levels of regulation and supervision. It represents the primary, most liquid segment of the market, ensuring efficient and transparent transactions.
In the UK, a special capital allowance against corporation tax that is granted in the year of purchase of an asset in place of the standard writing-down allowance of 25%.
Pertaining to public finance and financial transactions; relating to the public treasury.
A fiscal agent typically refers to a bank or trust company that manages various financial transactions and responsibilities, such as disbursing funds for dividend payments, redeeming bonds and coupons, handling bond-related taxes, and paying rents.
Fiscal policy involves the strategic use of government spending and taxation to influence a nation's macroeconomic conditions. It plays a crucial role in managing economic cycles by affecting demand, employment, inflation, and overall economic growth.
A fiscal tax year is a 12-month period used by businesses and organizations for accounting and taxation purposes. Unlike the calendar year, it does not necessarily end on December 31.
A fiscal year is a 12-month period used for calculating annual financial statements in businesses and other organizations. The start and end dates of a fiscal year can vary between countries and organizations.
A fiscalist is an economist who believes that government intervention in the economy, primarily through changes in taxation and government spending, is essential for managing economic stability and growth.
The Fisher Effect is an economic theory proposed by American economist Irving Fisher, which describes the relationship between nominal interest rates and real interest rates under the impact of inflation.
FIT refers to a situation where the features of a particular product, such as an investment, perfectly match the requirements of a buyer, ensuring maximum utility and satisfaction.
FIT Investment refers to Foreign Investment Tax, a concept that pertains to the taxation policies applied to foreign investments within a host country. This concept is crucial in international business and taxation.
Fixation refers to the process of setting the present or future price of a commodity based on market analyses and assessments of supply and demand.
An allowable method for computing a business automobile mileage allowance that is not reported as wages on Form W-2.
A fixed annuity is an investment contract sold by an insurance company that guarantees fixed payments, either for life or for a specified period, to an annuitant. It provides a stable and predictable income stream, making it a popular choice for retirees seeking financial security.
Fixed assets are long-term assets used in the operations of a business, such as land, buildings, machinery, and equipment. These assets are essential for production and business operations and are classified in various ways on the balance sheet.
A fixed assets register is a detailed record that keeps track of all the fixed assets owned by an individual or organization. It includes important information such as asset location, purchase details, useful life, and depreciation values, aiding in accurate financial reporting and asset management.
Payment to a beneficiary that remains constant over time, such as a fixed monthly retirement income benefit.
A fixed budget, also known as a static budget, is a financial plan that remains unchanged regardless of variations in actual levels of activity or circumstances. It does not adjust budget cost allowances for variable items, providing a steady financial framework.
Fixed Capital refers to the amount of an organization's capital that is invested in its fixed assets, such as buildings, machinery, and equipment, which are essential for ongoing operations and production.
A fixed charge is the portion of an expense that remains constant, regardless of the amount of a commodity or service used or consumed.
A fixed cost is a type of business expense that is constant and does not fluctuate with changes in the level of goods or services produced. These costs are incurred regularly, regardless of the business's activity level.
A fixed cost (also known as a fixed expense) is an item of expenditure that remains unchanged in total, irrespective of changes in the levels of production or sales. Examples include business rates, rent, and some salaries.
A fixed disk, also known as a hard disk, is a data storage device used for storing and retrieving digital information.
A fixed exchange rate is an exchange rate system where the value of a currency is pegged by the government to that of another currency, a basket of currencies, or a measure of value, such as gold. The government maintains this rate through economic policies and interventions in the foreign exchange market.
In the operation of a business, fixed expenses are those that remain constant regardless of production or sales levels. These are crucial for budgeting and financial planning, and they contrast with variable expenses, which fluctuate with the level of production or sales.
A fixed fee is a set price agreed upon for the completion of a project, representing a predetermined total cost regardless of the incurred expenses. This arrangement can provide budget certainty for clients while imposing some financial risk for contractors.
The fixed overhead absorption rate is calculated by dividing the budgeted fixed overheads by the budgeted production units or other budgeted production measures, reflecting the allocation of fixed manufacturing overheads to individual units of production.
In a system of standard costing, the fixed overhead capacity variance measures the difference between the actual hours worked and the budgeted capacity available, valued at the standard fixed overhead absorption rate per hour.
Fixed overhead costs are the elements of the indirect costs of an organization's product that, in total, remain unchanged irrespective of changes in the levels of production or sales. Examples include administrative salaries, sales personnel salaries, and factory rent.
In a system of standard costing, the fixed overhead efficiency variance represents the difference between the actual labor hours worked and the standard time allowed for the quantity actually produced, valued at the standard fixed overhead absorption rate per hour.
Fixed Overhead Expenditure Variance in standard costing refers to the difference between the fixed overhead budgeted and the actual fixed overhead incurred.
In a system of standard costing, the fixed overhead total variance represents the difference between the standard fixed overhead absorbed for the actual units produced and the actual fixed overhead expenditure incurred.
Fixed Overhead Volume Variance is a metric used in standard costing systems to quantify the difference between actual and budgeted production levels, valued at the standard fixed overhead absorption rate per unit. It measures the over- or under-recovery of fixed overheads due to the variance in actual activity levels from what was budgeted.
A fixed premium is a payment for insurance coverage that remains the same throughout the entire premium-paying period.
Fixed production overhead consists of factory costs that remain constant regardless of changes in the level of production or sales. Understanding these overheads is crucial for accurate financial and managerial accounting.
Fixed-asset investment refers to the expenditure on tangible assets that are likely to have a life of more than one year. These investments are essential for business operations and often include property, machinery, and infrastructure.
The Fixed-Asset to Equity-Capital Ratio is a financial metric used to assess a business's ability to satisfy long-term debt by comparing the value of its fixed assets to its equity capital.
A ratio that measures an organization's activity over a period by calculating the number of times the sales are a multiple of the balance-sheet value of the fixed assets.
A comprehensive listing of a company's fixed assets, detailing each asset's location, cost, revaluation, estimated net value, useful economic life, depreciation method, accumulated depreciation, and net book value.
The Fixed-Charge Coverage Ratio (FCCR) is a financial metric that reflects a company's ability to cover its fixed charges, such as interest and lease expenses, with its earnings before interest and taxes (EBIT). It's a key metric used by lenders and investors to assess a company's financial health and risk level.
The Fixed-Charge Coverage Ratio measures a firm's ability to meet its fixed financial obligations, including interest payments on long-term debt and other contractual commitments, relative to its earnings before interest and taxes.
Fixed-income refers to a type of investment or income stream where payments are received on a regular schedule and are typically not adjusted for inflation. Common examples include most bonds, certain annuities, and some pension funds.
Fixed-income investments are financial instruments that provide a fixed rate of return in the form of periodic interest or dividends until maturity.
Fixed-interest securities provide defined interest payments and are considered lower-risk investments. Examples include gilt-edged securities, bonds, preference shares, and debentures.
A fixed-point number in which the decimal point is set at a fixed location, commonly used for representing numbers with a predetermined scale.
A Fixed-Price Contract is a type of contract where the price is preset and not affected by the actual costs incurred during production or service execution. It ensures cost certainty for the buyer, transferring risk to the seller.
A fixed-rate loan is a type of financing arrangement where the interest rate remains constant for the entire term of the loan, providing borrowers with predictable monthly payments.
A fixture is an item that was initially personal property but has become real property due to its attachment to a building or land in such a way that removal would damage the property.
Flame in the context of communications refers to a publicly posted message, often in an email or online forum, that contains strong opinions or criticisms, sometimes harsh or vitriolic.
A Flash Crash refers to a very sudden and severe drop in security prices, followed by a quick recovery. The term is most famously associated with the nearly 1,000-point drop in the Dow Jones Industrial Average (DJIA) on May 6, 2010.
A flash drive is a data storage device that uses flash memory to store data persistently. It incorporates a USB interface for easy connection to various devices and has replaced many other storage formats due to its portability and ease-of-use.
Flash memory is a type of non-volatile computer storage chip that can be electrically erased and reprogrammed. It is commonly used in devices such as memory cards, USB flash drives, MP3 players, and solid-state drives for data storage and transfer.
A flash report is a management tool used in the USA to quickly highlight key data points that require corrective action.
Flash trading is a form of high-frequency trading (HFT) where certain traders get information about market orders fractions of a second before the general public does. This practice enables them to capitalize on this advance notice of potential trades.
A term with multiple definitions, spanning real estate, finance, bond trading, and general business contexts. The nuanced meanings can significantly impact various industries.
A flat rate, also known as a fixed rate, is a price that remains constant irrespective of the quantity purchased or other considerations. It is commonly used in various fields including advertising and direct marketing.
In industry and labor contexts, 'Flat Scale' refers to a uniform rate of pay that does not take into account the volume, frequency, or other variance factors.
A flat tax is a simple proportional tax system with a single rate. It has no reliefs or exemptions apart from a standard personal allowance, thereby streamlining tax compliance and administration.
A flea market is an open-air market where vendors display and sell used or secondhand goods. These markets often feature a variety of items, including antiques, collectibles, and household goods.
The term 'Fleet Factors' refers to a landmark 1990 court decision in the United States regarding a lender's potential exposure to liability for environmental cleanup if the lender acquires the property by foreclosure.
Flexed Budget Allowance refers to the budgeted expenditure level for each of the variable cost items adjusted to the level of activity actually achieved. This concept is crucial for adjusting budgetary figures based on actual performance.
A flexible budget adjusts budgeted income and expenditure based on changing circumstances and actual activity levels, allowing for a more accurate financial planning and performance measurement.
Flexible manufacturing is a computer-controlled manufacturing process that provides adaptability and flexibility in altering machinery to accommodate various products, thereby allowing rapid production customization at competitive costs.
A flexible manufacturing system (FMS) is an automated production line that can be quickly adapted to produce multiple product lines, enabling companies to lower costs and respond swiftly to changes in consumer demand.
A plan under which employees may make tax-free salary-reduction contributions to a medical or dependent care reimbursement plan, or to purchase group health insurance or life insurance coverage on a pretax basis.
Flexitime (also known as flextime) is a daily work system where employees have the flexibility to choose their starting and ending times within agreed limits, while ensuring they fulfill a minimum number of required work hours.
Flight to quality is an investment strategy where investors shift their capital to the safest possible assets, such as U.S. Treasury bills, to protect against loss during periods of market instability.
Flipping involves buying and then quickly reselling real estate, securities such as IPOs, or other assets for a profit. It relies on the volatility of prices and market efficiency.
In accounting and finance, 'float' refers to various concepts including delayed money processing, publicly held stock proportions, contingency fund allocation, and processes related to financial transactions and securities.
Floater coverage provides insurance for property that moves from location to location, whether on a scheduled or unscheduled basis, ensuring protection regardless of its position.
Floating an issue refers to the process by which a company issues new securities to the public in order to raise capital. This process involves several steps, including registering the securities with regulatory bodies and underwriting the issue.
Floating Assets, also known as Current Assets, are the assets in a company's possession that is expected to be converted into cash within a year.
A floating charge is a security interest over a pool of changing assets of a business, which ‘floats’ until it crystallizes and attaches to specific assets of the company.
The floating currency exchange rate, also known as a flexible exchange rate, is the movement of a foreign currency exchange rate in response to changes in market forces of supply and demand. The value of a country's currency is determined by market conditions rather than by any direct intervention by the central or national government.
Floating debt refers to short-term financial obligations that are continuously refinanced. It is commonly seen in both business and government sectors and includes instruments such as commercial paper and Treasury bills.
A floating exchange rate is a type of exchange rate regime wherein a currency's value is allowed to fluctuate due to market forces without direct governmental control. However, governments and central banks may intervene to stabilize the currency if necessary.
Floating securities refer to securities that are actively traded or outstanding in the market, often bought for quick profits or persistently remaining unsold after issuance.
In the context of financial markets, the term 'Floating Supply' refers to the total number of securities, such as municipal bonds or stocks, which are presently available for purchase by investors in the open market.
A floating-point number is a number in which the decimal point is allowed to float, represented by a base and an exponent. It allows for the efficient and accurate representation of a wide range of values, mimicking scientific notation.
A floating-rate loan has an interest rate that is not fixed and can fluctuate over the loan's tenure. These loans are often tied to short-term market indicators like the London Inter Bank Offered Rate (LIBOR).
A Floating-Rate Note (FRN) is a type of bond with a variable interest rate, often based on the London Interbank Offered Rate (LIBOR), adjusting periodically to reflect market conditions.
A Floating-Rate Note (FRN) is a type of debt instrument with a variable interest rate that adjusts periodically based on a benchmark interest rate, such as the LIBOR or the federal funds rate.
Flood insurance is an insurance policy that covers property damage due to natural flooding. This type of insurance is offered by private insurers but is encouraged and subsidized by the federal government. Buyers using a federally related mortgage to purchase a property in a floodplain are required to purchase flood insurance.
A floodplain is a level land area that is subject to periodic flooding from a contiguous body of water, such as a river, lake, or ocean. Floodplains are delineated by the expected frequency of flooding and are important in urban planning, agriculture, and environmental management.
In finance, a floor refers to the minimum interest rate set by the lender on a loan or other obligation. This ensures that the interest rate will not fall below a certain level, which provides a safety net for lenders' returns. It contrasts with a cap, which sets an upper limit on the interest rate.
A designated period during which salespeople, especially in real estate, are required to stay in the office to handle inquiries from prospective clients who do not have an existing relationship with the firm.
A floor loan represents the minimum amount that a lender is willing to advance to a borrower, typically within real estate or construction financing.
A floor plan is an architectural drawing depicting the layout, dimensions, and arrangement of rooms, as well as other physical features at one plane level of a building. It serves as a crucial tool in planning, designing, and constructing buildings.
Coverage for a lender who has accepted property on the floor of a merchant as security for a loan. It indemnifies the lender if the merchandise is damaged or destroyed, with the policy being on an all-risk basis.
