What Is Full Employment? Full employment is an economic situation in which all available labor resources are being used in the most efficient way possible. Full employment embodies the highest amount of skilled and unskilled labor that can be employed within an economy at any given time. True full employment is an ideal—and probably unachievable—situation
What Is Full-Recourse Debt? Full-recourse debt is a type of secured debt that gives the lender rights to assets—beyond just the secured collateral specified in the loan contract—to cover the full repayment of the borrower’s loan obligations if they default on the loan. In other words, loans with full-recourse provisions offer lenders additional remedies to
What Is a Full-Service Broker? A full-service broker is a licensed financial broker-dealer firm that provides a large variety of services to its clients, including research and advice, retirement planning, tax tips, and much more. Of course, this all comes at a price, as commissions at full-service brokerages are much higher than those at discount
What Is Full Stock? Full stock is a stock with a par value of $100 per share. A full stock issue can be either a preferred share or common share, although for practical purposes today par value of common stock is set at zero or at a price very close to nil. Therefore, full stock typically
What Is Fully Subscribed? Fully subscribed is the position a company finds itself in once all the shares of its initial bond or stock offering have been purchased or guaranteed by investors. An underwriting company usually facilitates these initial bond or stock offerings on behalf of younger companies that are making their initial public offerings
What Is a Free Market? The free market is an economic system based on supply and demand with little or no government control. It is a summary description of all voluntary exchanges that take place in a given economic environment. Free markets are characterized by a spontaneous and decentralized order of arrangements through which individuals
What Are Free Reserves? Free reserves are the monetary reserves that a bank holds in excess of required reserves, minus reserves borrowed from the central bank. Key Takeaways Free reserves are the reserves a bank holds in excess of required reserves, minus reserves borrowed from the central bank. More free reserves can mean more available bank
What Is Freeriding? The term freeriding refers to the practice of buying shares or other securities in a cash account and then selling them before the purchase has settled. When a trader freerides, they may pay for the shares using money from the proceeds of the sale instead of cash. Freeriding is a violation of
What Is a Free Trade Agreement (FTA)? A free trade agreement is a pact between two or more nations to reduce barriers to imports and exports among them. Under a free trade policy, goods and services can be bought and sold across international borders with little or no government tariffs, quotas, subsidies, or prohibitions to
What Are Freight Derivatives? Freight derivatives are financial instruments whose value is derived from the future levels of freight rates, like dry bulk carrying rates and oil tanker rates. Freight derivatives are often used by end-users (ship owners and grain-houses) and by suppliers (integrated oil companies and international trading corporations) to mitigate risk and hedge against
