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Banking & Finance Vocabulary

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120 terms

FAANG

FAANG is an acronym representing the stocks of five prominent American technology companies: Facebook (now Meta Platforms), Apple, Amazon, Netflix, and Google (

FCNR - FCNR Full Form, FCNR account

An FCNR (Foreign Currency Non-Resident) account is a fixed deposit account in India where Non-Resident Indians (NRIs) and Persons of Indian Origin (PIOs) can de

FDI (Foreign Direct Investment)

FDI, or Foreign Direct Investment, refers to an investment made by a company or individual in one country in business interests located in another country. This

FPI (Foreign Portfolio Investment)

FPI (Foreign Portfolio Investment) refers to investments made by foreign entities in the financial markets of another country, primarily in securities like stoc

Face Value

Face value is the nominal or stated value of a security—a stock, bond, or debenture—as printed on its certificate and fixed by the issuing company at the time o

Factor

A factor is a financial intermediary that provides immediate cash to businesses by purchasing their accounts receivable at a discount. Through this process, bus

Factor Market

A factor market is a marketplace where the factors of production—land, labour, capital, and entrepreneurship—are bought and sold. Firms purchase these productiv

Factors Of Production

Factors of production are the essential inputs required to create goods and services in an economy. These include land (natural resources), labour (human effort

Fake Claims

Fake claims are insurance claims submitted with deliberate fraudulent intent to illicitly obtain financial benefits from an insurer. These practices involve eit

Fallen Angel

A fallen angel is a bond that was originally issued with an investment-grade credit rating but has since been downgraded to junk bond (sub-investment-grade) sta

Feasibility Study

A feasibility study is a detailed assessment undertaken before launching a project to determine whether it is technically, legally, operationally, and economica

Fee

A fee is a specific charge that individuals or businesses pay in exchange for services, rights, or privileges. Fees can vary based on the type of service provid

Feeder Fund

A feeder fund is an investment vehicle that collects capital from multiple investors and then channels this pooled capital into a single, larger master fund. Th

Felony

A felony is a serious criminal offence punishable by imprisonment for more than one year, a life sentence, or in some jurisdictions, capital punishment. Felonie

Fibonacci Retracement

Fibonacci Retracement is a popular technical analysis tool used by traders to identify potential support and resistance levels in financial markets by applying

Fiduciary

A fiduciary is a person or entity legally required to act in the best interests of another party, placing that party's interests above their own. The fiduciary

Finality Of Payment

Finality of Payment refers to the point in a financial transaction when a payment becomes irreversible and unconditional, granting the recipient institution irr

Finance

Finance is the management and allocation of money and credit to individuals, businesses, and governments to achieve their financial goals and fund operations, i

Financial Accounting

Financial accounting is a systematic process of recording, classifying, summarizing, and reporting financial transactions of a business over a specific period.

Financial Advisor

A financial advisor is a professional who provides personalized guidance on managing money, investing, saving, and planning for long-term financial goals. Finan

Financial Advisor Careers

Financial advisor careers involve guiding individuals and businesses in planning their finances, including investments, retirement savings, and tax strategies.

Financial Analysis

Financial analysis is the process of evaluating a business's financial health, performance, and viability by examining its financial statements and other releva

Financial Contagion: What It Is and How It Affect

Financial contagion is the rapid transmission of financial distress, market shocks, or economic crises from one country or market to another, regardless of dire

Financial Crisis

A financial crisis refers to a severe disruption in the financial system characterized by a rapid decline in asset prices, widespread defaults on debt obligatio

Financial Economics

Financial economics is a branch of economics that studies the interrelationship between financial variables, financial markets, and the allocation of financial

Financial Guarantee

A financial guarantee is a promise made by a guarantor to assume responsibility for a borrower's debt obligations in the event of default. Typically provided by

Financial Health

Financial health describes the overall state of an individual's or entity's monetary situation, encompassing aspects like income, expenses, savings, investments

Financial Innovation

Financial innovation refers to the development and introduction of new financial products, services, technologies, or business processes that improve efficiency

Financial Instrument

A financial instrument is a contract between two parties that represents a monetary value and can be traded, modified, or settled based on mutual agreement. The

Financial Intermediary

A financial intermediary is an entity that acts as a middleman between two parties in a financial transaction, primarily facilitating the flow of funds from sav

Financial Literacy

Financial literacy is the knowledge and practical ability to understand money, manage it wisely, and make sound financial decisions. It encompasses the skills t

Financial Plan

A financial plan is a comprehensive strategy that outlines an individual's long-term financial goals and develops actionable steps to achieve those goals. It se

Financial Planning

Financial planning is the comprehensive process of evaluating an individual's or entity's current financial situation and setting strategies to achieve their fu

Financial Quota Share

A financial quota share is a proportional reinsurance treaty in which an insurance company (the ceding insurer) transfers a fixed percentage of both premiums an

Financial Ratios

Financial ratios are quantitative relationships calculated from a company's financial statements to evaluate its performance and financial health. These ratios

Financial Risk

Financial risk refers to the possibility of losing money or incurring financial losses due to various factors, impacting individuals, businesses, or governments

Financial Sector

The financial sector comprises all institutions and markets that mobilize savings, allocate credit, facilitate investments, and manage risk in an economy. It is

Financial Stability Plan (FSP)

A Financial Stability Plan (FSP) is a strategic initiative aimed at ensuring the resilience and reliability of the financial system within a country. The FSP's

Financial Statement Analysis

Financial Statement Analysis is the systematic process of reviewing and evaluating a company's financial statements to understand its financial health, performa

Financial Statements

Financial statements are formal records that summarize a business's financial activities, assets, liabilities, and profitability over a specific period. They ar

Financial Structure

Financial structure refers to the composition of a company's assets financed through a combination of debt and equity. It reflects how a business obtains funds

Financial System

A financial system is a complex network of institutions, markets, instruments, and services that facilitates the flow of funds between savers and borrowers with

Financial Technology

Financial Technology (fintech) refers to innovative software, algorithms, and digital platforms that automate, streamline, and enhance the delivery of financial

Financial Times Stock Exchange Group (FTSE)

The Financial Times Stock Exchange Group (FTSE), now known as FTSE Russell Group, is a prominent British organization that develops financial indices for global

Financial fraud

Financial fraud is a deliberate act of deception or misrepresentation carried out to unlawfully obtain money, assets, or financial benefits from an individual,

Fire Sale

A fire sale is the forced or urgent sale of assets, securities, or inventory at steeply discounted prices, typically because the seller faces immediate financia

First In, First Out (FIFO)

First In, First Out (FIFO) is an accounting method used for inventory valuation, where the oldest inventory items are sold or used before the newer items. This

First Notice of Loss – FNOL

The First Notice of Loss (FNOL) is the initial communication made by a policyholder to their insurance provider following an event that could potentially lead t

Fiscal Capacity

Fiscal capacity is the government's ability to generate revenue through taxation and other sources to finance public services, infrastructure, and administrativ

Fiscal Deficit

A fiscal deficit occurs when a government's total expenditures exceed its revenue, excluding any borrowings. It indicates the amount of money that the governmen

Fiscal Neutrality

Fiscal neutrality is an economic principle asserting that government fiscal policy, encompassing both taxation and public expenditure, should not distort or inf

Fiscal Policy

Fiscal policy is the use of government spending and taxation to influence economic activity and achieve national economic goals. It is the primary tool by which

Fitch Ratings

Fitch Ratings is a global credit rating agency that assesses the creditworthiness of entities such as corporations, governments, and financial institutions. It

Fixed Cost

A fixed cost is a business expense that does not change in total, regardless of the level of production or sales volume within a relevant range and a specific t

Fixed Exchange Rate

A fixed exchange rate is an official peg set by a country's central bank that locks the value of its currency to another major currency (such as the US dollar)

Fixed Income Trading

Fixed income trading refers to the buying and selling of fixed income securities, which offer regular interest payments to investors. This type of trading prima

Fixing

Fixing, predominantly referred to as price fixing, is an illegal and anti-competitive practice where competing businesses conspire to set, maintain, or control

Flexi-Cap Fund

A flexi-cap fund is an equity mutual fund that invests across large-cap, mid-cap, and small-cap stocks without a fixed allocation constraint, allowing the fund

Flip

Flip refers to a strategic investment approach where an asset is quickly bought and then sold, typically after making enhancements to increase its value. This t

Flipping

Flipping refers to the strategy of acquiring an asset with the primary intention of reselling it quickly for a short-term profit, rather than holding it for lon

Floor Limit

A floor limit is the transaction amount below which a credit card purchase can be completed without seeking explicit authorization from the cardholder's bank. T

Focused Fund

A focused fund is a mutual fund that holds a concentrated portfolio of typically 20–30 securities or fewer, rather than spreading investments across 100+ holdin

Follow-on Public Offers (FPOs)

A Follow-on Public Offer (FPO) is a method through which a publicly listed company raises additional capital by issuing new shares to the public after it has al

Food and Agriculture Organisation,fao

The Food and Agriculture Organisation (FAO) is a specialized agency of the United Nations that leads international efforts to defeat hunger and improve nutritio

Footings

Footings is the process of summing all debit and credit entries in an account column to arrive at a total balance. The sum of all debits is tallied separately f

Force Majeure

Force Majeure is a legal concept that involves unforeseen events or circumstances that are beyond the control of the parties involved in a contract. These extra

Foreclosure

Foreclosure is a legal process by which a lender repossesses and sells a mortgaged property when the borrower fails to make loan repayments as agreed. This acti

Foreign Exchange Reserves

Foreign exchange reserves are assets held by a central bank in foreign currencies. These reserves include foreign banknotes, deposits, treasury bills, shares, a

Foreign Institutional Investors (FIIs)

Foreign Institutional Investors (FIIs) are entities established outside India that invest in India's financial markets, including equities, bonds, and other mar

Forensic Accounting

Forensic accounting is the practice of applying accounting, auditing, and investigative techniques to uncover financial crimes, trace hidden assets, and reconst

Forensic Audit

A forensic audit is a specialized examination of an individual or organization’s financial records aimed at uncovering facts related to potential fraud or misco

Forex & Currencies Trading

Forex & Currencies Trading, often abbreviated as FX trading, refers to the global, decentralised market where participants buy and sell various national currenc

Forex Club

A forex club is a professional association of foreign exchange dealers, brokers, treasury managers, and wholesale market professionals that promotes education,

Forfeited Share

A forfeited share is an equity share that has been cancelled by a company because the shareholder failed to pay the required subscription amount, known as call

Forfeiture

Forfeiture refers to the involuntary loss of property, money, or rights due to a failure to meet contractual obligations, non-compliance with legal requirements

Forward Pricing

Forward pricing is the process of determining the delivery price for a financial asset, currency, or commodity in a forward contract, agreed upon today but sett

Forward Spread

A forward spread is the difference in price between the spot value of a security and its corresponding forward price at a specified future date. This price diff

Found Money

Found money refers to financial assets or funds that have been forgotten, lost, or overlooked by their rightful owners, only to be rediscovered later. This term

Fourth World

The Fourth World refers to the world's poorest, most economically marginalized populations and regions, typically characterized by extreme poverty, limited acce

Fragmentation

Fragmentation, in the context of economics and supply chain management, refers to the process of breaking down the production of a good or service into distinct

Franchise

A franchise is a legal agreement in which a business owner (franchisor) grants another individual or company (franchisee) the right to operate a business using

Franchisee

A franchisee is an individual or entity that purchases the rights to operate a franchise business under the brand and business model of a franchisor. By enterin

Fraud

Fraud is an intentional deception perpetrated by an individual or entity to secure an unlawful gain, often at the expense of a victim. It involves misrepresenta

Free Enterprise

Free enterprise is an economic system in which private individuals and businesses make decisions about production, pricing, and resource allocation based on mar

Free Market

A free market is an economic system characterized by voluntary exchanges between buyers and sellers with minimal to no government intervention. In a free market

Free Market Capitalism (FMC)

Free Market Capitalism (FMC) is an economic system characterised by private ownership of the means of production, minimal government intervention, and economic

Free On Board, fob meaning

Free on Board (FOB) is a shipping term that specifies at which point in transit the risk of loss or damage to goods transfers from the seller to the buyer. FOB

Free Rider Problem

The free rider problem refers to a situation in which individuals benefit from resources, goods, or services without paying for them, leading to an under-provis

Free Trade

Free trade is an international trade policy that aims to reduce or eliminate tariffs, quotas, and other barriers to the exchange of goods and services between c

Frequency Distribution

A frequency distribution is a tabular or graphical representation that organizes data into classes or intervals and shows how many observations fall within each

Freudian Motivation Theory

Freudian Motivation Theory posits that an individual's behavior, including purchasing patterns, is largely influenced by unconscious psychological forces. These

Frictional Unemployment

Frictional unemployment refers to the temporary unemployment experienced by individuals who are transitioning between jobs, entering the workforce for the first

Fringe Benefits

Fringe benefits are additional forms of compensation provided by employers to employees beyond their base salary or wages. These may include health insurance, t

Front Office

The front office in a financial institution refers to the client-facing departments responsible for revenue generation and direct interaction with customers. Th

Front-Running

Front-running is an unethical trading practice where a broker or trader executes orders based on advanced, non-public information about a client's large pending

Froth

Froth refers to excessive market enthusiasm and rapid asset price appreciation that exceeds the underlying intrinsic value, creating unstable conditions before

Full Carry

Full Carry, also known as a true carry market, is an idealised condition in the futures market where the price of a futures contract for a later delivery month

Fund Flow

Fund flow is the net movement of money into and out of financial assets, mutual funds, or investment schemes over a specific period, typically measured monthly

Fund Overlap

Fund overlap occurs when an investor holds multiple mutual funds that invest in the same securities or assets, which can dilute the diversification intended in

Fund Trading

Fund trading refers to the activity of buying and selling units of investment funds, such as mutual funds or Exchange Traded Funds (ETFs), rather than individua

Fundamental Analysis

Fundamental analysis is a method of evaluating a stock's intrinsic value by examining a company's financial statements, management quality, competitive position

Fundamentals

Fundamentals refer to the core quantitative and qualitative metrics used to evaluate the performance, health, and potential of a business, economy, or financial

Funded Debt

Funded debt refers to a company's financial obligations with a maturity period extending beyond one year or one operating cycle, whichever is longer. These are

Fungibility

Fungibility is the property of an asset or good that allows it to be freely exchanged or substituted with another identical unit of the same kind without any lo

Futures

Futures are legally binding contracts that obligate parties to buy or sell an asset, such as commodities or financial instruments, at a predetermined price on a

Futures & Commodities Trading

Futures & Commodities Trading involves the buying and selling of standardized contracts to deliver or take delivery of a specific underlying asset, known as a c

Futures Equivalent

Futures equivalent is the number of futures contracts needed to match the risk exposure of an options position. It uses delta, the sensitivity of an option's pr

Futures Strip

A futures strip is a strategy used in trading whereby an investor purchases multiple futures contracts that are scheduled for delivery over consecutive time per

fair value

Fair value refers to the estimated worth of an asset as agreed upon by knowledgeable and willing buyers and sellers in an open market transaction. It reflects t

fastag

FASTag is an electronic toll collection system that allows vehicles to pay tolls automatically while passing through toll plazas on national and state highways.

fci,fixed capital index

Fixed Capital refers to long-term assets and capital expenditures that a business acquires to operate and generate revenue over an extended period. These assets

fear and greed index

The Fear and Greed Index is a widely referenced market indicator that measures two dominant emotions driving investor behaviour: fear and greed. Developed by CN

fiat money

Fiat money is a type of currency that is issued by a government and not backed by any physical commodity like gold or silver. Its value is primarily derived fro

fiduciary meaning

Fiduciary meaning refers to a legal duty arising from a relationship of trust and responsibility between parties, where one party, the fiduciary, is obligated t

finance bill

A finance bill is a legal document used primarily in international trade between two parties, serving as proof of a debtor's promise to pay for goods or service

fintech

Fintech, an abbreviation for financial technology, refers to the innovative application of technology to improve and automate financial services. It encompasses

fmcg products

FMCG products, or Fast-Moving Consumer Goods, are items that are sold quickly at relatively low costs. These goods are characterized by their short shelf life a

fmcg,Fast Moving Consumer Goods

Fast Moving Consumer Goods (FMCG) are products that are sold quickly, at relatively low cost, and are characterised by high consumer demand and rapid turnover.

foreign exchange market

The foreign exchange market (forex or FX market) is the global over-the-counter marketplace where currencies are traded against each other, enabling internation

fsa,flexible spending account

A Flexible Spending Account (FSA) is a tax-advantaged financial account that allows employees to set aside pre-tax dollars for eligible out-of-pocket health exp