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FASB
(USA) The Financial Accounting Standards Board. The quasi-public body primarily
responsible for developing rules governing USA generally accepted accounting
practices.
Federal Deposit Insurance Corporation (FDIC)
(USA) A US federal agency that insures deposits in member banks
and thrift institutions up to $100,000.
Final Prospectus
The final version of a prospectus that includes the final price,
delivery date and the underwriting spread; it is given to all investors
who wish to purchase the issue.
Financial Services Authority (FSA)
The Financial Services Authority is an independent non-governmental
body in the UK which exercises statutory powers under the Financial
Services and Markets Act 2000 (and certain other legislation).
The FSA is the competent authority regulating the securities industry
in the UK, including banks, brokers, investment houses, and financial
advisers. It was created by the merger of functions previously
performed by the Securities Investment Board, or SIB, Investment
Management Regulatory Organisation, or IMRO, the Bank of England,
and other agencies. See ‘Competent Authority’.
Firm Commitment Underwriting
An underwriting arrangement in which an underwriter agrees to purchase
all of the securities being offered for resale to the public, thereby,
in theory, assuming the risk of finding buyers. In practice, this
risk is very slight by the time an underwriter becomes legally
obligated to purchase the securities from the issuer, as the underwriters
will already have ‘built a book’ of investors who have
indicated an interest in buying the securities. See ‘All-or-None’ and ‘Best
Efforts Underwriting’ for comparison.
First Preferred Stock or Shares
Preferred stock that takes precedence over other preferred and
common stock with regard to dividends and assets. Also called ‘Senior
Preferred Stock or Shares’.
First Refusal
See ‘Right of First Refusal’.
Float or Free Float or Public Float
The number of shares not held by corporate insiders that are freely
tradable in the public market or markets on which a company’s
securities are listed.
Flowback
(USA) Term used to describe securities initially offered outside
the USA that are subsequently resold to USA residents, which may
be in violation of applicable restrictions or registration requirements.
This term is also used in Europe in the same context. See ‘Anti-Flowback
Rules’.
Follow-on Investment
An additional investment by existing investors, which may be provided
for in documentation relating to the initial investment.
Forms
See ‘Registration Statement’ and ‘Reporting Company
Forms’.
Forward Pricing
(USA) The SEC requirement that open-end investment companies (popularly
called mutual funds) set their share price based on net asset value
and base all incoming buy and sell orders on the immediately subsequent
net asset value.
Founder’s Stock
Stock issued to the founders of a company, usually at a low price
in comparison to that paid by investors.
Free Float
See ‘Float’.
Freezeout
A process whereby a controlling stockholder of a company prevents
dividends or other benefits from flowing to minority stockholders,
usually as a prelude to buying out their stock at a low price.
FTSE 100
An index based on the stock of the top 100 companies traded on
the London Stock Exchange (Official List). See ‘Index’ and ‘Official
List’.
Full List
See ‘Official List’.
Fully Diluted Earnings Per Share
Common stock earnings per share calculated as if all warrants and
stock options were exercised and all convertible bonds and preferred
stock (and certain convertible debt) were converted. Fully diluted
earnings per share are usually a more accurate reflection of the
company’s real earning power.
Fund of Funds
An investment fund that invests in other investment funds.
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