| Follow on Public Offering (FPO) |
|
|
When an already listed company makes either a fresh issue of securities to the public or an offer for sale to the public, through an offer document, it is known as Follow on Public Offering. An offer for sale in such case is allowed only if it is made to satisfy listing or continuous listing obligations. |
|
| Floor Price |
|
|
The minimum offer price below which bids cannot be entered. The Issuer Company in consultation with the Book Running Lead Manager fixes the floor price. |
|
| Futures Contract |
|
| An agreement between parties for a specified asset for performance on a fixed date in future. |
|
| Fair value |
|
| The no-arbitrage price of a futures contract. Also known as theoretical value. |
|
| Far contract |
 |
| The future that is furthest from its delivery month i. e. has the longest maturity. |
|
| Fill or kill order |
|
| An order to trade futures contracts which must be executed immediately. If not it is cancelled. |
|
| Financial engineering |
|
| The process of designing new financial instruments, especially derivative securities. |
|
| Float capitalization |
|
| The value of that portion of the firm�s equity that is available for trading, and so excludes shares in the hands of controlling investors. |
|
| Floor broker |
|
| An exchange member who is paid a fee for executing orders for Clearing Members or their customers. A Floor Broker executing orders must be licensed by the exchange he is working on. |
|
| Floor trader |
|
| An exchange member who generally trades only for his/her own account or for an account controlled by him/her. Also referred to as a "local." |
|
| Forced liquidation |
|
| A customer�s open positions in futures contracts are offset by the brokerage firm holding the account, usually after the customer fails to meet margin calls. Also called compulsory close-out. |
|
| Forward contract |
|
| An agreement between two parties to trade an asset at a specified future date and price. This is an OTC product. |
|
| Forward months |
|
| Futures contracts other than the near contract. |
|
| Front running |
|
| Brokers trade on their own behalf, ahead of their customers order�s. This was only banned in Japan in December 1992. |
|
| Fundamental analysis |
|
| The application of economic analysis to publicly available information to predict price movements. |
|
| Futures contract |
|
| A legal, transferable standardised contract that represents an agreement to buy or sell a quantity of a standardised asset at a predetermined delivery date. This is an exchange-traded product. |
|
| Futures option |
|
| An option written on a futures contract. |
|
