What Is Forensic Accounting? Forensic accounting utilizes accounting, auditing, and investigative skills to examine the finances of an individual or business. Forensic accountants are CPAs that look for evidence of crimes and commonly work for insurance companies, financial institutions, and law enforcement agencies. Forensic accountants analyze financial records and accounts that may be used as
What Is a Forensic Audit? A forensic audit examines and evaluates a firm’s or individual’s financial records to derive evidence used in a court of law or legal proceeding. Forensic auditing is a specialization within accounting, and most large accounting firms have a forensic auditing department. Forensic audits require accounting and auditing procedures and expert
What Is a Focus List? A focus list is a list of recommended stocks published by an investment firm’s research department. Focus lists generally consist of a small number of stocks that the firm believes are the most attractive opportunities at the time. Key Takeaways A focus list is a list of stocks that the
What Is Fill or Kill (FOK)? Fill or kill (FOK) is a conditional type of time-in-force order used in securities trading that instructs a brokerage to execute a transaction immediately and completely or not at all. This type of order is most often used by active traders and is usually for a large quantity of stock.
What Is a Follow-on Offering (FPO)? A follow-on offering (FPO) is an issuance of stock shares following a company’s initial public offering (IPO). There are two types of follow-on offerings: diluted and non-diluted. A diluted follow-on offering results in the company issuing new shares after the IPO, which causes the lowering of a company’s earnings per share (EPS).
What Is Follow the Settlements? In the insurance industry, the phrase “follow the settlements” refers to a legal provision that is often included in reinsurance contracts. The purpose of the provision is to clarify that, if the reinsured party decides to settle a claim with one or more policyholders, the reinsurer will honor those settlements.
What Is Follow-the-Leader Pricing? Follow-the-leader pricing is a competitive pricing strategy where a business matches the prices and services of the market leader. That is, a company will follow the pricing of the largest player in the industry. For example, when the market leader lowers the price of its goods, the company will lower its
What Is the Federal Open Market Committee (FOMC)? The term Federal Open Market Committee (FOMC) refers to the branch of the Federal Reserve System (FRS) that determines the direction of monetary policy in the United States by directing open market operations (OMOs). The committee is made up of 12 members, including seven members of the
What Is the Food and Agriculture Organization (FAO)? The Food and Agriculture Organization (FAO) is a United Nations (UN) agency that works on international efforts to defeat hunger by developing agriculture. Key Takeaways The Food and Agriculture Organization (FAO), a UN agency, strives to combat hunger and reduce poverty globally by improving agricultural, forestry, and
What Is a Fool in the Shower? “Fool in the shower” is a metaphor attributed to Nobel laureate Milton Friedman, who likened a central bank that acted too forcefully to a fool in the shower. The notion is that changes or policies designed to alter the course of the economy should be done slowly, rather
