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
What Is Fool’s Gold? Any flashy but ultimately worthless investment may be called fool’s gold in finance. The term originally referred only to iron pyrite, which is commonly mistaken for gold. Key Takeaways Any flashy but ultimately worthless investment may be called fool’s gold in finance.Fool’s gold originally referred only to iron pyrite, which is
What is the Footsie Footsie is slang for the Financial Times-Stock Exchange 100 Share Index (FTSE 100). BREAKING DOWN Footsie The Footsie is an index that tracks the 100 largest public companies by market capitalization that trade on the London Stock Exchange (LSE). The FTSE 100 represents more than 80 percent of the LSE’s market
What Is a Financial Operating Plan (FOP)? A financial operating plan (FOP) is a financial plan outlining the revenues and expenses over a period of time. A financial operating plan uses past performances, incomes, and expenses to forecast what to expect in the following years. It then incorporates past and recent trends into the planning
