F

• Family Office

  Private wealth management firms that cater to the financial needs of high net worth individuals, typically individuals or families with assets over $50 million.

• First Mover Advantage

  The advantage that a company has by being the first to enter a market or introduce a new product.

• Follow-on Investment (ROI)

  An additional investment made by an investor in a company that they have previously invested in.

• Fund of Funds (FOF)

  Also known as a multi-manager investment—is a pooled investment fund that invests in other types of funds. In other words, its portfolio contains different underlying portfolios of other funds. These holdings replace any investing directly in other types of securities.

• Forecasting

  The process of attempting to predict the future condition of the economy, based on historical data and other factors. Can also apply to predicting future revenues of individual companies or properties.

• Financial Portfolio

  A financial portfolio is an aggregation of various types of investments, such as stocks, bonds, commodities, cash, and other financial instruments. It can also encompass a broader range of assets, including real estate, art, and private investments. The composition of a portfolio is tailored to the investor’s goals, risk tolerance, and investment horizon, offering a diversified approach to wealth management and growth.

• Fair Value

  The estimated price at which an asset is bought or sold when both the buyer and seller freely agree on a price. The estimated value of an asset or liability based on current market conditions.

• Financial Independence

  The state of having sufficient wealth and assets to cover living expenses without relying on employment income.

• Financial leverage

  Using borrowed capital as a funding source when investing to expand the firm's asset base and generate returns on risk capital. Leverage is an investment strategy of using borrowed money—specifically, the use of various financial instruments or borrowed capital—to increase the potential return of an investment.

• Fiscal Year

  A one-year period that companies and governments use for financial reporting and budgeting. A fiscal year is most commonly used for accounting purposes to prepare financial statements. A 12-month period used for financial reporting and budgeting purposes, not necessarily coinciding with the calendar year.

• Fixed Interest Rate

  An unchanging rate charged on a liability, such as a loan or a mortgage. It might apply during the entire term of the loan or for just part of the term, but it remains the same throughout a set period.

• Flipping

  Purchasing an asset with a short holding period with the intent of selling it for a quick profit rather than holding on for long-term appreciation. Flipping is most often used to describe short-term real estate transactions as well as the activities of some investors in initial public offerings (IPO).

• Fund Manager

  The individual or entity responsible for managing and making investment decisions for a mutual fund or investment fund, by implementing a fund's investing strategy and managing its portfolio trading activities.

• Family Office

  Private wealth management advisory firms that serve ultra-high-net-worth investors.

• Follow-on Funding

  Additional investment in a company that had been previously invested in.

• Financial Industry Regulatory Authority (FINRA)

  A regulatory body that governs business between brokers, dealers and the investing public.

• Fintech

  Industry composed of companies that use technology to offer financial services.