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Brokerage: Glossary F
Fallen Angel: In some cases, high quality companies are undervalued because of market conditions or lack of research coverage. Savvy investors often seek out such companies and invest in them based on their fundamentals and not only on the market's valuation. Fast Market: An influx of orders or other unusual condition which impedes the market. During fast market conditions, real time quotes may not be accurate, rather indicative of what has already occurred. Additionally, trade executions may be delayed. Federal Call (Reg. T Call): A demand for the deposit of cash or marginable securities to have proper collateral for the cost of the transaction. See the explanation of margin for more complete information on using margin leverage in your investing. Federal Reserve System: The central bank system for the United States, commonly known as the Fed. Its chief responsibility is to regulate the flow of money and credit. The Board of Governors of the Federal Reserve System is a seven member group appointed by the President (subject to the approval of Congress) to oversee operations of the Federal Reserve System. Fill or Kill (FOK): An order stipulation instructing the broker to present the order in the marketplace and either fill it in its entirety or kill it if it cannot be filled immediately at its stipulated price limit. Final Prospectus: After an IPO is priced, the company is required to print a final prospectus which contains the information presented to the public in the preliminary prospectus. The final prospectus is distributed to all of the buyers of the IPO. First Day Close: The first day close is the closing price on the first day a stock is publicly traded. In a fast market, the first day close may be several times higher than the offering price. However, the price can drop down just as fast as investors take profits and "flip" the stock. Fiscal Policy: The federal tax and spending policies set by Congress and/or the President. Flipping: To buy and sell an equity within a short period of time to take profits is called flipping. Some investors buy IPO shares near the offering price and immediately sell their stake as the price jumps in the aftermarket. The practice of flipping may be discouraged by the underwriters though penalties and waiting periods. Float: The float is the number of shares held by the general public. The higher the float (public vs. outstanding) the less volatile the stock is considered. If the stock has a small float, a single, large transaction is likely to affect its price. Foreign: A non U.S. Company with securities trading in the U.S. Forward Contract: A cash market transaction in which a future delivery date is specified. Forward contracts differ from futures contracts in that the terms of forward contracts are not standardized and are not traded in contract markets. Futures Contract: A standardized, exchange-traded contract to make or take delivery of a particular type and grade of commodity at an agreed upon place and point in the future. Futures contracts are transferable between parties.
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