What Is a Free Trade Area? A free trade area is a region in which a number of countries have signed a free trade agreement and maintain little or no barriers to trade in the form of tariffs or quotas among one another. Free trade areas facilitate international trade and the associated gains from trade
What Is Free Cash Flow to the Firm (FCFF)? Free cash flow to the firm (FCFF) represents the amount of cash flow from operations available for distribution after accounting for depreciation expenses, taxes, working capital, and investments. FCFF is a measurement of a company’s profitability after all expenses and reinvestments. It is one of the
What Is Free Cash Flow Per Share Free cash flow per share (FCF) is a measure of a company’s financial flexibility that is determined by dividing free cash flow by the total number of shares outstanding. This measure serves as a proxy for measuring changes in earnings per share. Ideally, a business will generate more
What Is Free Cash Flow to Equity (FCFE)? Free cash flow to equity is a measure of how much cash is available to the equity shareholders of a company after all expenses, reinvestment, and debt are paid. FCFE is a measure of equity capital usage. Understanding Free Cash Flow to Equity Free cash flow to
What are Freedom Shares? Freedom shares, also known as savings notes, are original issue discount bonds issued by the U.S. Treasury between May 1967 and October 1970 with a 30-year maturity. Key Takeaways The U.S. Treasury sold Freedom shares from May 1967 to October 1970.Freedom shares were issued at 81% of face value and sold
What Is Freed Up? In the initial public offering (IPO) world, “freed up” refers to the time after the lock-up period when investment bank underwriters are no longer obligated to sell securities at the agreed-upon price. When an investment bank is freed up, it is allowed to trade any remaining securities at the prevalent market price.
What Is Free-Float Methodology? The free-float methodology is a method of calculating the market capitalization of a stock market index’s underlying companies. With the free-float methodology, market capitalization is calculated by taking the equity’s price and multiplying it by the number of shares readily available in the market. Rather than using all of the shares
What Is a Freelancer? A freelancer is an individual who earns money on a per-job or per-task basis, usually for short-term work as an independent contractor. A freelancer is not an employee of a firm and may therefore be at liberty to complete different jobs concurrently by various individuals or firms unless contractually committed to
What Is a Free Lunch? A free lunch refers to a situation where there is no cost incurred by the individual receiving the goods or services being provided. For example, if an individual needs to travel from New York to Boston and catches a ride with their friend without contributing to gas or meals along
What is Found Money Found money refers to any amount of money that has been rediscovered after being forgotten about or abandoned by the rightful owner. Understanding Found Money The term “found money” describes anything from a wad of discarded dollar bills one finds in the bottom of a washing machine to an uncollected asset discovered
