Growth Investing Stock Market Glossary
From A for ‘Asset’ to Z for the ‘Zero-Coupon Yield Curve’ — your comprehensive guide to everything that matters in the markets.
Face value
The specified value of a par value share or bond on the certificate.
Face Value
Contractual value of a bond or par value share at issuance and redemption.
Factoring
Sale of claims to a financier for quick liquidity procurement at a discount.
Fair Disclosure (Reg FD)
US rule requiring simultaneous public disclosure of market-relevant information.
Fair Value / Fair Value
Evaluation measure for the current, market-appropriate price of an asset.
Fair Value Hierarchy
IFRS classification of valuation principles into Level 1 to 3 according to the proximity of the inputs to the market.
Faktor-ETF
Exchange-traded fund that systematically replicates factor premiums such as quality or low volatility.
Faktor-Exposure
Measure for the exposure of a portfolio to return factors such as Value, Size, or Momentum.
Faktorallokation
Distribution of the portfolio across return factors to manage risk and return.
Faktorenrotation
Periodic change of preferred factors depending on market regime.
Faktorprämie
Additional return associated with systematic characteristics of securities.
Faktorsensitivität
Degree of response of a security or portfolio to changes in a specific factor.
False floor
Chart formation consisting of two low points with an intermediate high point in between as a potential reversal signal.
Fama-French
Factor models that extend market return by size, value, and other factors.
Family Office
Asset management for wealthy families with a comprehensive mandate.
FASB
US standard setter for financial reporting, issuing US GAAP.
FATCA
US reporting requirements for foreign financial accounts of US taxpayers.
Fed Funds Rate
Target interest rate for unsecured overnight loans between US banks.
Federal bond
A usually fixed-rate government bond issued by the Federal Republic of Germany with high creditworthiness.
Federal Reserve (Fed)
The central bank of the USA with a mandate for price stability and employment.
Fee structure
Composition of order, exchange, administrative, performance, and other costs of a product or broker.
Fehlausbruch (Fakeout)
Temporary break of a chart-technical level without sustainable trend continuation.
Feiertagseffekt
Seasonality patterns with above-average returns on days before or after holidays.
Fibonacci Retracement
Fibonacci zones based on Fibonacci ratios to identify potential reversal points.
FIFO
Rating and sales method "First In, First Out" for inventories and tax pots.
Financial calendar
Schedule overview of an issuer with reporting, dividend, and annual general meeting dates.
Financial communication
Scheduled information of capital market participants through investor relations activities.
Financial leverage
Ratio of debt to equity or effect of leverage on return on equity.
Financial ratio
Quantitative measure for assessing profitability, growth, liquidity, or indebtedness.
Financial statement analysis
Systematic evaluation of the financial statements to assess profitability, liquidity, and stability.
Financing round
Capital raising phase of a company, typically in venture financings (Seed, Series A, etc.).
Financing structure
Composition of equity and debt including maturities and collateral.
Finanzaufsicht
Official monitoring of institutions, markets, and products to ensure stability.
Finanzinstrument
Contractual claim or obligation with financial cash flows.
Finanzmarkt
Totality of the markets for capital, credit, currencies, and derivatives.
FINMA (Swiss Financial Market Supervisory Authority)
National supervisory authority of Switzerland for financial market participants.
First trading day (initial listing)
First stock price determination of a newly listed security.
Fiscal Year
Accounting period of a company, not necessarily the calendar year.
Fixed assets
Long-term assets of a company such as machinery, real estate, or intangible assets.
Fixed Income
Asset class of fixed or variable interest-bearing securities such as bonds and mortgage bonds.
Fixing
Price determination in an auction at defined times such as opening or closing.
Flattener
Yield curve strategy that focuses on a decrease in the spread between short and long maturities.
Flight To Quality
Reallocating funds to investments considered safe during times of stress.
Floating Rate Note (FRN)
Bond with variable coupon linked to reference interest rates.
Floor
Lower limit for interest rates, coupons, or payout profiles.
Floor trading
Floor trading with price formation via floor brokers.
Floor value
Minimum value of an asset or portfolio according to strategy or covenant.
Fluctuation reserve
Insurance provision for smoothing out investment results.
FMA (Austrian Financial Market Authority)
National supervisory authority of Austria for banks, insurers, and securities firms.
FOK (Fill Or Kill)
Order supplement that forces complete, immediate execution, otherwise cancellation.
FOMO
Behavioral pattern "Fear Of Missing Out" (fear of missing out) with the tendency to follow trends late and unreflectively.
Foreign capital costs
Effective cost of debt before/after taxes.
Foreign exchange intervention
Central bank intervention in the currency market to influence the exchange rate.
Foreign exchange market (FX spot)
Global market for the immediate exchange of currencies.
Foreign exchange risk
Risk from exchange rate changes in foreign currency positions.
Forschungsnotiz
Short publication with assessment, updated numbers, or event evaluation.
Forward
Over-the-counter forward contract with individual design and delivery in the future.
Forward Guidance
Communication of central banks regarding future monetary policy course.
Forward Points
Markup or markdown in foreign exchange forward contracts, derived from interest rate differentials.
Forward Premium/Discount
Ratio of forward to spot exchange rate in foreign exchange trading.
Forward-looking
Assessment or measurement based on expected future values.
Forward-P/E ratio
Rating factor with expected profits of the upcoming periods in the denominator.
FRA (Forward Rate Agreement)
Over-the-counter interest rate derivative to fix a future interest rate.
Fractional Shares
Tradeable fractions of shares for finer position sizing.
Fractional Shares (Aktienbruchstücke)
Tradable fractions of shares that make it easier for small investors to access.
Framing
Representation effect, where identical information leads to different decisions depending on the context.
Frankfurt Stock Exchange
Operator of Xetra and Frankfurt Stock Exchange as well as various market and infrastructure services.
Free Cash Flow (FCF)
Operatively generated funds after investments, available to owners or debt service.
Free Cash Flow To Equity (FCFE)
FCF after debt service, available to equity investors.
Free Cash Flow To Firm (FCFF)
FCF before debt service, available to all capital providers.
Free Float
Tradable free float without strategic blocking or government holdings.
Freistellungsauftrag
Bank order to use the saver's lump sum for capital gains.
Fremdkapital
Capital from creditors with contractual interest and repayment obligations.
French government bonds
French government bond as the reference instrument of the EUR interest rate market.
Front-end load
Distribution fee charged when buying a fund, which increases the share price.
Front-Running
Unauthorized proprietary trading by an intermediary with knowledge of impending customer orders.
FTSE
Index provider and family of global stock indices.
Fund of Funds
Fund that invests in other funds, thus creating manager and strategy diversification.
Fundamental analysis
Rating of companies based on business model, balance sheet, income statement, cash flows, and market position.
Fundamental Indexing
Index construction based on fundamental criteria instead of market capitalization.
Funding Cost
Financing costs for positions or transactions including collateral requirements.
Funding Gap
Difference between due payment obligations and available sources of financing.
Funding Liquidity
Availability of refinancing for market participants and institutions.
Fungibility
Interchangeability of identical units of an asset without difference in value.
Fusion synergy
Expected added value from cost savings or revenue levers after a merger.
Futures
Standardized futures contract with exchange trading and daily mark-to-market.
Futures chain
Sequence of available maturities of a futures contract.
Futures contract
Contract for buying or selling at a fixed price at a future time.
Futures contract
Futures contract on commodities or goods with later delivery or cash settlement.
Futures curve
Price development of a futures contract across different maturities (term structure).
Futures market
Market for standardized or bilateral forward contracts such as futures and forwards.
Futures price
For a future date agreed price of a foreign exchange or commodity transaction.
FX Forward
Foreign exchange forward contract with a fixed future exchange rate.
FX Swap
Combination of spot and forward transactions for temporary currency and interest rate transfer.
