What Is a Fixed-for-Floating Swap? A fixed-for-floating swap is a contractual arrangement between two parties in which one party swaps the interest cash flows of fixed-rate loan(s) with those of floating-rate loan(s) held by another party. The principal of the underlying loans is not exchanged. Key Takeaways A fixed-for-floating swap occurs when one party swaps the
What Is a Financing Squeeze? A financing squeeze occurs when would-be borrowers find it difficult to obtain capital because lenders fear making loans. This often leads to a liquidity crisis if there is little cash on hand and not enough operating cash flow. A financing squeeze also occurs if credit is available, but only at
What Is the Financial Crimes Enforcement Network (FinCEN)? The Financial Crimes Enforcement Network (FinCEN) is a government bureau that maintains a network whose goal is to prevent and punish criminals and criminal networks that participate in money laundering and other financial crimes. FinCEN, administered by the U.S. Department of the Treasury, operates domestically and internationally, and
What Is a Finder’s Fee? A finder’s fee (also known as “referral income” or “referral fee”) is a commission paid to an intermediary or the facilitator of a transaction. The finder’s fee is rewarded because the intermediary discovered the deal and brought it to the attention of interested parties. The presumption is that without the
What Is Finding And Development (F&D)? Finding and development (F&D) refers to costs incurred when a company purchases, researches and develops properties in an effort to establish commodity reserves. Exploration and development businesses rely on finding commodities to manufacture and sell. Finding and development costs represent a cost of doing business for these types of
What Is Fine Print? The “fine print” is a term that refers to contract terms and conditions, disclosures, or other important information that is not included in the main body of a document but placed in footnotes or a supplemental document. Reading and understanding the fine print is essential when entering into an agreement. It
What Is Finite Reinsurance? Finite reinsurance, also known as finite risk reinsurance, is a category of reinsurance that cedes a finite or limited amount of risk to the reinsurer. By transferring less risk to the reinsurer, the insurer receives coverage on its potential claims at a lower cost than with traditional reinsurance. Risk reduction is from accounting
What Is Finite Risk Insurance? Finite risk insurance is an insurance transaction in which the insured pays a premium that constitutes a pool of funds for the insurer to use to cover any losses. If losses are lower than the premium, the insurer returns most or all of these charges back to the insured. If, on the
What Is the Financial Industry Regulatory Authority (FINRA)? The Financial Industry Regulatory Authority (FINRA) is an independent, nongovernmental organization that writes and enforces the rules governing registered brokers and broker-dealer firms in the United States. Its stated mission is “to safeguard the investing public against fraud and bad practices.” It is considered a self-regulatory organization.
What Is FINRA BrokerCheck? FINRA BrokerCheck is a free, online tool that helps individuals research brokers, investment firms, and financial advisers. Investors can obtain a variety of information, including descriptions, services offered, credentials, sanctions, and registrations, that may be helpful in the selection and vetting of an individual financial advice provider or brokerage firm. BrokerCheck
