What Is a Funded Debt? Funded debt is a company’s debt that matures in more than one year or one business cycle. This type of debt is classified as such because it is funded by interest payments made by the borrowing firm over the term of the loan. Funded debt is also called long-term debt
What Is Funded Status? Funded status compares the assets to the liabilities in a defined-benefit (DB) pension plan. This data point is useful in understanding how many employees are truly covered in a worst-case scenario if the company or other organization is forced to pay all of its retirement benefits at once. Key Takeaways Funded
What Is Fund Flow? Fund flow is the cash that flows into and out of various financial assets for specific periods of time. It’s usually measured on a monthly or quarterly basis. Fund flow doesn’t measure the performance of any asset. For example, with mutual funds, fund flow measures the cash involved in share purchases
What Is a Funding Cover? Funding covers refer to insurance premiums held in an account in conjunction with an excess-of-loss reinsurance, which is used to pay insurance claims. Funding covers act as resource pools that can be drawn down to pay for claims, with unused funds returned to either policyholders or ceding insurers. Key Takeaways
What Is a Fund Manager? A fund manager is responsible for implementing a fund’s investing strategy and managing its portfolio trading activities. The fund can be managed by one person, by two people as co-managers, or by a team of three or more people. Fund managers are paid a fee for their work, which is
What Is Froth? Froth refers to market conditions preceding an actual market bubble, where asset prices become detached from their underlying intrinsic values as demand for those assets drives their prices to unsustainable levels. A frothy market is one where investors begin to ignore market fundamentals and bid up an asset’s price beyond what the
What Is a Frozen Account? A frozen account is a bank or investment account through which no transaction can be made. Account freezes are normally the result of a court order and, in some cases, they may be done by the bank itself. This usually occurs when the account holder has unpaid debts to creditors
What Is a Frugalista? Frugalista is a neologism defined in 2008 by the Oxford New American Dictionary as “a person who lives a frugal lifestyle but stays fashionable and healthy by swapping clothes, buying secondhand, growing own produce, etc.” The word gained popularity as the 2008 financial crisis unfolded, and it was discussed by The
What Is the Federal Trade Commission (FTC)? The Federal Trade Commission (FTC) is an independent, bipartisan agency of the U.S. government tasked with protecting consumers and ensuring a strong competitive market. Lina Khan is the current Chair of the Federal Trade Commission (FTC). Its principal purpose is to enforce non-criminal antitrust laws in the United States
What Is a Forward Triangular Merger? A forward triangular merger, or indirect merger, is when a company acquires a target company through a subsidiary, or shell company. The acquired company is merged into this shell company, which assumes all the target’s assets and liabilities. Key Takeaways A forward triangular merger is the acquisition of a
