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FERA:
Foreign Exchange Regulation Act 1973.
FERA Companies:
The Foreign Exchange Regulation Act(FERA) 1973 seeks, among other things, to dilute foreign ownership to less than 40% in companies operating in India by imposing certain restrictions, such as no diversification and no expansion. Foreign companies which hold more than 40% equity shares of their Indian subsidiaries are permitted to operate in India only if they fall in the priority sector or export 65% or more of their products. All the others have been made to liquidate their foreign equity holding to 40% or less. There are still a large number of companies with more than 40% equity participation by foreigners, and they are FERA companies. Shares of FERA companies are genereally highly prized by investors because oftheir professional management, excellent performance, and high profitability.FERA restrictions are now considerbly relaxed.
FI:
FINANCIAL INSTITUTION.
FICCI:
Federation of Indian Chamber of Commerce and Industry.
FIFO or First in First Out|:
A method of inventory valuation in which the cost of first items received in the inventory is taken into the cost of the first items sold. under this method the cost of goods sold equals the opening inventory plus purchases during the year, less closing inventory. Since in an inflationary situation the first costs of inventory are lower than the last costs, the cost of goods sold
Faatakya:
Speculator.
Face Value:
See PAR VALUE.
Factoring:
It is a continuing arrangement between a financial institution, the factor, and a business concern, the client, selling goods or services to trade customers, whereby the factor buys the client's book debts, i.e.,ACCOUNTS RECIEVABLE, either with or without recourse to the client, and controls thecredit extended to the customers and administers the sales ledger. The Reaerve Bank of India has directed that factoring should be done by banks through separate subsidaries.
Fail Position:
A situation created by a seller-broker who has failed to deliver because the client has defaulted.
Fail to Deliver:
A situation in which a selling broker has not delivered to the buying broker, because the selling client has defaulted. The buying broker then does not pay.
Fail to Recieve:
Opposite of the above, when the buying broker has not received delivery of shares from the selling broker. As long as the fail to receive exists, the seller will not recieve payment.
Fallen Angel:
A security that has fallen below its original value and is now traded for its yield.
Fanny Mae:
Colloquial US name for the Federal National Mortgageion Association (FNNA). Look up her sister GINNIE MAE.Q
Fiduciaries:
Those entrusted with the responsibility of investing money, particularly trust money, for others. They are guided by the prudent-man rule, i.e., they must act with discretion to achieve a reasonable return. prevent erosion of capital, and avoid speculation. Persons entrusted with fiduciary responsibility are bank trust officers, insurance portfolio managers, executors and trustees of wills, and pension fund trustees.
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