Financial Terms and Definitions » F

Fiduciary

ashivapu — Sat, 03 Oct 2009 22:53:08 +0000

A person or party that that is legally appointed to hold assets in trust for another person. They will manage and make decisions on behalf of the individual they are holding the trust for. Also known as fiduciary duty. Related posts:Principal-Agent relationship Mutual Fund Related posts:

Federal Funds Rate

ashivapu — Sat, 03 Oct 2009 03:06:22 +0000

The interest rate that banks charge each other for the use of Federal funds. It changes daily and is a sensitive indicator of general interest rate trends.

The Federal funds rate is one of the of two interest rates controlled by the Fed. While the Fed can’t directly affect this rate, it effectively controls it in the way it buys and sells Treasuries to banks. This is the rate that reaches individual investors, though the changes usually aren’t felt for a period of time.

Fed

ashivapu — Sat, 03 Oct 2009 03:05:29 +0000

A 7-member Board of Governors that oversees the Federal Reserve Banks, establishes monetary policy (interest rates, credit, etc.), and monitors the economic health of the country. Its members are appointed by the President subject to Senate confirmation, and serve 14-year terms. Related posts:Federal Funds Rate Investment Bank Related posts:

Futures

ashivapu — Fri, 02 Oct 2009 21:44:06 +0000

Futures are financial contracts which obligate the buyer to purchase an asset and the seller to sell an asset at a predetermined price and date. Futures offer much higher leverage compared to stocks.

Futures are generally used for hedging or speculating purposes. Futures activity can also be used to determine buy/sell value of a particular stock.

Forex

ashivapu — Fri, 02 Oct 2009 06:48:34 +0000

The foreign exchange market, also known as currency, forex, or FX, trades currencies. It lets banks, institutions, and traders easily buy and sell currencies.

The Forex market is open 24 hours except on weekends and allows for traders to trade on leverage.

The Wild Investor: A Great Forex Trading System Anybody Can Use

Fundamental Analysis

ashivapu — Fri, 02 Oct 2009 01:48:27 +0000

Fundamental analysis involves studying a company’s financial statements and health, its management and competitive advantages, and its competitors and markets to consider whether a security is worth buying or selling. Also check out technical analysis. Related posts:Technical Analysis Write-Down Short Selling Related posts: