What Is Free on Board (FOB)? Free on Board (FOB) is a shipment term that defines the point in the supply chain when a buyer or seller becomes liable for the goods being transported. Purchase orders between buyers and sellers specify the FOB terms and help determine ownership, risk, and transportation costs. “FOB Origin” or
What Is a Focused Fund? A focused fund is a mutual fund that holds a only relatively small variety of stocks or bonds that are similar along some dimension. By definition, a focused mutual fund focuses on a limited number stocks in a limited number of sectors, rather than holding a broad or diversified mix
What Is a Flash Crash? The term flash crash refers to an event in the electronic securities markets wherein stock withdrawal orders rapidly amplify price declines before quickly recovering. The result of a flash crash appears to be a rapid sell-off of securities that can happen over a few minutes, resulting in dramatic declines. But
What is Flash Manufacturing PMI? Flash Manufacturing PMI is an estimate of manufacturing for a country, based on about 85% to 90% of total Purchasing Managers’ Index (PMI) survey responses each month. Key Takeaways Flash Manufacturing PMI is an estimate of manufacturing for a country, based on about 85% to 90% of total Purchasing Managers’
What Is a Flash Price? The flash price provides as close to real-time price information as possible, with the understanding that there are always lags between price quotes and the actual traded price. Key Takeaways The flash price provides as close to real-time price information as possible, but investors must realize that lags between price
What is Flash Services PMI Flash services PMI is an early estimate of the Services Purchasing Managers’ Index (PMI) for a country, designed to provide an accurate advance indication of the final services PMI data. Breaking Down Flash Services PMI IHS Markit publishes the services PMI monthly. Data is based on surveys of more than 400 senior
What Is Flat Bond? Flat bond is a term given to the price of a bond when it does not include any accrued interest. Accrued interest is the portion of a bond’s coupon payment that the holder earns in between scheduled coupon payments. A flat bond’s price is referred to as its clean price. Key
What Is a Flat Benefit Formula? A flat benefit formula is one method for calculating a pension payout from an employee’s defined benefit plan. In a flat benefit formula, the employer multiplies an employee’s months or years of service by a predetermined flat rate. This method may be compared with the unit benefit formula, which pays a
What Is the Flat Yield Curve? The flat yield curve is a yield curve in which there is little difference between short-term and long-term rates for bonds of the same credit quality. This type of yield curve flattening is often seen during transitions between normal and inverted curves. The difference between a flat yield curve
What Are Fleet Cards? Fleet cards are a type of payment card that allows businesses to manage expenses associated with the vehicles they own and operate. Fleet cards, also known as fuel cards, act just like charge cards and are provided by major oil and/or specialized credit companies. Businesses provide their personnel—namely transportation employees—with fleet
