What Is a Flexible Fund? A flexible fund is a mutual fund or other pooled investment that has broad flexibility for making investment decisions and allocations. Flexible funds can be U.S. regulated or offshore funds. These funds give the portfolio manager broad latitude for making portfolio investments. As a result, they are highly susceptible to
What Is a Flexible Expense? A flexible expense is a discretionary purchase that can be altered or eliminated without a significant downside. These are non-essential expenses that stand in contrast to fixed expenses. Flexible expenses should be included in a budget to manage an individual’s overall finances. Economists often use the term consumer discretionary spending
What Is a Flexible Manufacturing System (FMS)? A flexible manufacturing system (FMS) is a production method that is designed to easily adapt to changes in the type and quantity of the product being manufactured. Machines and computerized systems can be configured to manufacture a variety of parts and handle changing levels of production. Key Takeaways A flexible
What Is a Flexi-Cap Fund? A flexi-cap fund is a type of mutual fund that is not restricted to investing in companies with a predetermined market capitalization. This type of fund structure will be indicated in the fund’s prospectus. A flexi-cap fund can provide the fund manager with greater investment choices and diversification possibilities. Key
What Is a Flexible Exchange Option? Flexible exchange options, or FLEX options, are nonstandard options that allow both the writer and purchaser to negotiate various terms. Terms that are negotiable include the exercise style, strike price, and expiration date, as well as other features and benefits. These options also give investors the opportunity to trade on a
What Is Flight to Quality? Flight to quality occurs when investors in aggregate begin to shift their asset allocation away from riskier investments and into safer ones, for instance out of stocks and into bonds. Uncertainty in the financial or international markets usually causes this herd-like behavior. However, at other times, the move may be
What is Flip-Flop Note? Flip-flop note is a fixed-income security, backed by two different sources of debt – one with a fixed interest rate and the other with a variable interest rate, that allows the holder to choose their payment stream. Key Takeaways Flip-flop note is a fixed-income security, backed by two different sources of
What Is Flipping? Flipping refers to purchasing an asset with a short holding period with the intent of selling it for a quick profit rather than holding on for long-term appreciation. Flipping is most often used to describe short-term real estate transactions as well as the activities of some investors in initial public offerings (IPO).
What Is the Float? In financial terms, the float is money within the banking system that is briefly counted twice due to time gaps in registering a deposit or withdrawal. These time gaps are usually due to the delay in processing paper checks. A bank credits a customer’s account as soon as a check is
What Is a Floater? A floater, also known as a floating rate note (FRN), is a bond or other type of debt instrument whose interest payment is variable and tied to a predetermined benchmark index, such as London Inter-bank Offer Rate (LIBOR), that adjusts to current market conditions. A floater lies may be contrasted with
