Business Finance

A floating-rate note (FRN) is a type of bond or debt instrument where the interest rate paid to investors fluctuates over time based on a specified benchmark or reference rate. Unlike fixed-rate bonds, which have a predetermined interest rate for the entire duration of the bond, the interest rate on an FRN adjusts periodically, providing […]

In the context of financial markets, the floor refers to a physical trading venue where securities, commodities, or other financial instruments are bought and sold. It serves as a centralized location where traders, brokers, and investors gather to conduct transactions directly. Key Aspects of the Floor Functions of the Floor Trading and Execution Market Making

A floor trader is a professional who executes buy and sell orders for securities, such as stocks or options, directly on the trading floor of a stock exchange. This role involves active participation in market transactions, primarily focusing on making profits through rapid trading and market-making activities. Key Aspects of a Floor Trader Responsibilities of

Flotation, in business and finance, refers to the process by which a company offers its shares (stocks) to the public for the first time. It is also known as an Initial Public Offering (IPO). This process allows companies to raise capital from investors in exchange for ownership stakes in the company. Key Aspects of Flotation

Flotation costs refer to the expenses a company incurs when it issues new securities to investors, such as stocks or bonds. These costs are associated with the process of issuing and selling these securities and include fees paid to investment bankers, underwriters, legal fees, and other administrative expenses. Key Aspects of Flotation Costs Components of

Foreign bonds are debt securities issued by a foreign entity, such as a foreign government, corporation, or financial institution, in a country other than its own. These bonds are denominated in the currency of the country where they are issued and are typically purchased by investors seeking exposure to international markets or diversification beyond their

Foreign exchange, commonly abbreviated as Forex, refers to the global marketplace where currencies are bought and sold. It encompasses the trading of currencies between countries, facilitating international trade and investment by enabling businesses and individuals to convert one currency into another. Key Aspects of Foreign Exchange How Does Foreign Exchange Work? Mechanics of Forex Trading

Forfaiting is a financial arrangement used in international trade and finance where a supplier (exporter) sells its medium to long-term receivables (payments due from customers) to a forfaiter at a discount. This allows the exporter to receive immediate cash flow while transferring the credit risk associated with the receivables to the forfaiter. Key Features of

Forfeited shares refer to shares that were allocated to an individual or entity but are subsequently cancelled or taken back by the company issuing them due to non-fulfillment of certain conditions or obligations. These shares revert to the issuing company and are typically reissued or cancelled depending on the circumstances surrounding their forfeiture. Key Points

Forwardation refers to the situation where the forward price of a commodity or financial instrument is higher than its spot price. It reflects the cost of carrying the asset forward to a future date, considering factors such as storage costs, interest rates, and market expectations. Forwardation is the opposite of contango, where the forward price