FHA Experience
An estimate of the average life of a pool of mortgage-backed securities in relation to experience tables developed by the Federal Housing Administration.

FT Index
Refers to the Financial Times Industrial Ordinary Share Index, also known as the "30 Share Index." This started in 1935 at 100, and is based on the prices of 30 leading industrial and commercial shares. They are chosen to be representative of British industry, rather than of the Exchange. Government stocks, banks and insurance companies are not included. The Index is calculated hourly during the day with a "closing index" at 4:30 p.m.

FT-SE 100 Share Index
Popularly known as "Footsie"; an index of 100 leading UK shares listed on the London Stock Exchange providing a minute-by-minute picture of how share prices are moving. It started on January 3, 1984 with the base number of 1,000. Also forms the basis of a contract in the London Traded Options Market (LTOM) and the London International Financial Futures Exchange (LIFFE).

FT-SE Eurotrack 200 Index
Denominated in ECUs, this comprises the stocks of the FT-SE 100 Index plus the constituents of the FT-SE Eurotrack 100 Index. The UK component is weighted to ensure that the 200 Index closely tracks the major benchmark indices. It started on Monday, February 25, 1991 with a base value of 1,000 as at close of business on Friday, October 26, 1990.

Face Value
The debt (or loan) amount that appears on the face of the certificate and that the issuer must pay at maturity.

Factor
A decimal between 0 and 1 that represents the amount of mortgages remaining in a pool of mortgage-backed securities.

Factor Book
A tabular presentation that shows relevant information about factors, value of remaining mortgages, and interest rates on mortgage-backed securities.

Factor Table
A table used to compute the outstanding principal on Pass-Throughs - Ginnie Maes, Freddie Macs and Fannie Maes.

Family Of Funds
An investment management company offering funds with many investment objectives. Fund families often allow investors to transfer money between funds for either a nominal charge or no charge at all. Thus, an investor with shares in a growth fund could transfer all or part of his or her assets into another fund without paying a new sales charge if each of these funds is managed by a single investment firm.

Federal Reserve Board
The US government agency that regulates credit.

Federal Reserve System
The USA's central monetary authority and the Treasury Department's agent for selling new issues of Treasury bills, notes, and bonds.

Fiduciary
A person legally appointed in the P&S department.

Fill Or Kill (FOK)
An order that requires execution of the entire quantity immediately. If not, the order is canceled.

Final Dividend
The dividend paid by a company at the end of its financial year, recommended by the directors but authorized by the shareholders at the company's annual general meeting.

Financial Advisor
A professional who helps individuals and businesses in an ongoing process to arrange and coordinate their personal and business financial affairs to enable them to achieve their objectives.

Financial Services Funds
A fund that invests primarily in the stocks of companies engaged in providing financial services, including banks, finance companies, insurance and securities or brokerage firms.

Financing Corporation
An agency created to assist the S&L industry by retailing securities to the public. Also the nickname for its securities.

Fiscal Agent
The authority who is responsible for issuing new securities of federal agencies.

Fiscal Year
The twelve-month period during which a business maintains its financial records. Since this cycle does not have to coincide with the calendar year, it is known as the fiscal year.

Fixed Annuity
Insurance company guarantees dollar amount of payments to the annuitant for the period covered under the contract.

Fixed Assets
Assets that generate fixed income, including investment certificates, certificates of deposit, fixed annuities and most bonds.

Fixed Income
Income that is paid at the same rate until the investment (typically bonds) matures or is sold.

Fixed Income Security
A security that pays a fixed rate of return. This term is usually used in reference to government, corporate or municipal bonds, which pay a fixed rate of interest until the bonds mature, and to preferred stock, which pay a fixed dividend. Fixed income securities offer the guarantee of a fixed return, but do not offer an investor much, if any, potential for growth.

Flat
A bond trading without accrued interest is said to be trading "flat."

Flexible Portfolio Funds
A fund that can invest in stocks, bonds and cash in whatever proportion the manager deems appropriate, providing the manager total flexibility to achieve maximum returns. Flexible portfolio funds are sometimes called asset allocation funds.

Floor Broker
An exchange member who, as such, is permitted to conduct business on the exchange floor.

Flotation
The occasion on which a company's shares are offered on the market for the first time.

Flower Bond
A specially identified series of Treasury bonds accepted at full par in payment of estate taxes.

Foreign Issuer
A company or government outside the U.S. that uses securities to raise money.

Fourth Market
Trading directly between institutional investors on a system named Instinet.

Free Stock
Loanable securities; that is, securities that can be used for loan or hypothecation. These securities are the stock in a margin account that represents the debit balance.

Front-End Load
One of three possible sales charge schedules imposed by funds that charge fees. A front end load, or "upfront charge" is a fee charged on the initial purchase of fund shares, and can range from 3% to 8% of the purchase amount. Funds sold under several sales charge options usually refer to the shares sold with a front end load as "Class A shares."

Frozen Account
An account in which all purchases must be paid for in cash in advance for a period of 90 days because of failure to make timely or proper payment in the past.

Full Trading Authorization
Owner of the account gives power to another person to buy, sell and make withdrawals from the account.

Fully Disclosed
All customer accounts of the Introducing Broker are introduced to another Broker/Dealer who clears the customers' trades. This second broker is called a Clearing Broker. The names and addresses of the customer accounts are "fully disclosed" to the Clearing Broker whose name is also disclosed to the customers on the statements and confirmations. The Clearing Broker does all the bookkeeping involved in settling the trades and keeping the customer accounts in proper form.

Fully Invested
The investment of nearly all available assets in securities other than short-term securities (such as savings and money market accounts). When a fund is said to be "fully invested," it usually implies that the fund's manager is confident that the securities markets will be improving.

Fully Paid
Applied to new issues, when the total amount payable in relation to the new shares has been paid to the company.

Fund Exchange
Ability to shift a mutual fund investment from one fund to another sponsored by the same mutual fund family.

Fund Family
An investment management company that offers several types of mutual funds.

Fund of Funds
A fund that invests only in the shares of other open-end funds. Fund of funds were popular during the 1960s but have subsequently fallen out of favor with most investors.

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