Factoring is a financial transaction involving the sale of a company's accounts receivable to a third party, known as a factor, to improve cash flow and manage credit risk. This article delves into its types, historical context, importance, key events, and applicability in modern finance.
The Fama-French Three-Factor Model extends the Capital Asset Pricing Model (CAPM) by adding size and value factors to the market risk factor, providing a more comprehensive view of asset returns.
An in-depth look at the prestigious title of Fellow of the Association of Authorized Public Accountants (FAPA), its historical context, importance, and application in the field of accounting.
Fat Tail refers to probability distributions where extreme events have a higher likelihood than normal. Explore the types, importance, and real-world applications.
A Federal Grant is a form of financial assistance provided by the federal government that does not need to be repaid. These grants are usually awarded to individuals, organizations, or institutions for specific purposes.
The Federal Reserve Act established the Federal Reserve System and provides the legal framework for its functions, including banking regulations like Regulation W.
An in-depth exploration of the Federal Reserve System, the central banking system of the United States, its structure, roles, history, and significance in providing a stable and secure financial system.
An in-depth exploration of the Federal Reserve's Quantitative Easing, its historical context, implementation, significance, and impacts on the economy.
The Federal Home Loan Mortgage Corporation, commonly known as Freddie Mac, is a government-sponsored entity that plays a crucial role in the US mortgage market, similar to FNMA (Fannie Mae), by purchasing, securitizing, and reselling home loans.
Fiat currency refers to government-issued money that is not backed by a physical commodity, such as gold or silver, but derives its value from the trust and faith that individuals and governments place in it.
FIFO (First In, First Out) is an inventory valuation method where older inventory costs are expensed first. It simplifies tracking and provides a realistic view on inventory usage.
The filing date is the date when a document is officially submitted to the Securities and Exchange Commission (SEC), marking its official entry into the public record.
An organization providing finance for hire-purchase or leasing agreements, often owned by commercial banks, facilitating consumer purchases of expensive items.
A comprehensive guide to the role of a Financial Auditor, covering historical context, responsibilities, key events, models, importance, examples, related terms, and more.
Financial covenants are clauses included in loan agreements to ensure the financial stability of the borrower. They help protect lenders by setting specific requirements on financial performance.
Comprehensive guide to Financial Forecasting, including its definition, types, applications, examples, historical context, and frequently asked questions.
An in-depth examination of Financial Holding Companies (FHCs), their historical context, types, key events, detailed explanations, and significance in the financial world.
An in-depth exploration of Financial Innovation, encompassing changes in financial institutions, instruments, or business practices within the financial sector.
Explore the intricacies of financial leverage, its historical context, types, key events, formulas, and its significant role in finance and investments.
The Financial Planning Association (FPA) is a professional organization offering extensive support, resources, and advocacy for financial planners and advisors.
Comprehensive overview of financial reporting standards, including their history, types, key events, detailed explanations, importance, applicability, and related terms.
A comprehensive guide to understanding Finished Goods Inventory, including its definition, importance, types, key events, mathematical models, and more.
Comprehensive overview of First-Year Allowances (FYA) in taxation, including historical context, key events, explanations, applicability, examples, and more.
A comprehensive guide to distinguishing between fiscal deficit and budget deficit, including definitions, historical context, types, key events, formulas, examples, and more.
Fixed Capital represents the amount of an organization's capital tied up in its fixed assets, such as machinery, buildings, and equipment, which are essential for long-term operations.
A comprehensive examination of fixed charges, their historical context, types, key events, importance, applicability, and examples in various industries.
Fixed costs (FC) are expenses that do not change with the level of goods or services produced by a business. Typical examples include rent, salaries, and insurance.
A Fixed Price refers to a predetermined price that remains unchanged regardless of market fluctuations. This article covers its historical context, types, key events, detailed explanations, mathematical formulas, applicability, examples, related terms, and much more.
A comprehensive look at Fixed Rate Dividends, exploring their historical context, types, importance, and applicability, enriched with charts, examples, related terms, and more.
A comprehensive look into Fixed-Interest Securities, investments that provide regular fixed interest payments, including types, historical context, key events, mathematical models, importance, and examples.
Fixed-rate investments provide predictable returns by offering a fixed interest rate over a specific period. This type of investment is generally considered safe, making it ideal for risk-averse individuals, though it often comes with lower potential upside compared to other investment types.
An in-depth exploration of Fixed-Rate Notes, financial instruments that offer a fixed interest rate throughout their duration, ensuring predictability in returns but lesser flexibility compared to Variable Rate Demand Notes (VRDNs).
Flat Trading refers to the practice of trading bonds without taking into account any accrued interest. The traded price is settled without including the interest that has accumulated since the last interest payment.
Understanding the period between the issuance and clearance of checks, commonly referred to as Float Time, with historical context, examples, and key considerations.
Floatation costs, also known as issue costs, refer to the expenses incurred by a company during an initial public offering (IPO). These costs include underwriting fees, legal expenses, registration fees, and other related charges.
An in-depth exploration of floating charges, a type of security interest on a company's assets that provides flexibility until the charge crystallizes.
Floating Rate Notes (FRNs) are bonds that have variable interest rates adjusted periodically. These adjustments are often tied to a benchmark interest rate, such as LIBOR or the federal funds rate.
A floating-rate loan, unlike fixed-rate loans, is a type of loan where the interest rate fluctuates over the loan's term, usually in relation to a benchmark interest rate such as the London Inter Bank Offered Rate (LIBOR).
Comprehensive overview of the 'Floor' in trade cycle theory, the lowest level of real national product during the slump phase. Historical context, key events, and detailed explanations included.
The maximum amount a merchant can charge without obtaining authorization from the card issuer, known as the floor limit, is a critical concept in payment processing.
A detailed exploration of the Farmers Home Administration (FmHA), its historical context, types of loans, key events, models, charts, and diagrams, its importance, applicability, and more.
A Follow-On Public Offering (FPO) is the issuance of additional shares by a public company after its initial public offering (IPO) to raise more capital or allow existing shareholders to sell their shares.
FOMO (Fear Of Missing Out) is a common emotional response characterized by the anxiety that one might miss out on a potentially rewarding investment opportunity, leading to impulsive decision-making and suboptimal financial behavior.
A comprehensive guide to foreclosure, detailing its historical context, types, key events, and implications. Learn about the foreclosure process, important considerations, related terms, and more.
A complete guide to the foreclosure process, elaborating on judicial and non-judicial methods, historical context, legal considerations, and practical examples.
Forward Rate Agreements (FRAs) are financial contracts that determine the interest rates to be paid or received on an obligation beginning at a future start date. These contracts are used by entities to hedge against interest rate fluctuations.
Fractional Ownership involves partial ownership of an asset, usually high-end properties, granting owners extensive usage rights. Explore its history, types, key events, applications, and more.
An in-depth look at fragmentation, where commercial offsets between transactions do not align with taxation, particularly in the context of foreign-exchange.
Free cash flow (FCF) is an important financial metric that represents the cash a company generates or consumes. This measure is often used by managers and investors to assess a company’s financial health and its ability to grow, pay dividends, reduce debt, or reinvest in the business. The concept of free cash flow is not standardized under generally accepted accounting principles (GAAP), and various definitions and equations may be applied.
An in-depth exploration of free exchange rates, also known as floating exchange rates, covering historical context, types, key events, mathematical models, and their importance in the global economy.
Understanding Free-Float Market Capitalization: its historical context, significance in stock markets, mathematical models, and its applicability in finance.
Understanding the front-end charge applied by investment and insurance management firms on initial investments. This entry covers its types, importance, and implications.
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