What Is a Fraternal Organization? A fraternal organization is a brotherhood or a type of social organization whose members freely associate for a mutually beneficial purpose such as for social, professional or honorary principles. The term fraternal organization is from the Latin frater, meaning brother. Key Takeaways A fraternal organization is a social club or
What Is Fraud? Investopedia / Sydney Saporito Fraud is an intentionally deceptive action designed to provide the perpetrator with an unlawful gain or to deny a right to a victim. Types of fraud include tax fraud, credit card fraud, wire fraud, securities fraud, and bankruptcy fraud. Fraudulent activity can be carried out by one individual, multiple
What Are Fixed-Rate Capital Securities (FRCS)? A fixed-rate capital security (FRCS) is a security issued by a corporation that has a $25 par value (although some are issued with a $1,000 par value) and offers investors a combination of the features of corporate bonds and preferred stock. These securities provide the benefits of attractive yields:
What Is Free Enterprise? Free enterprise, or the free market, refers to an economy where the market determines prices, products, and services rather than the government. Businesses and services are free of government control. Alternatively, free enterprise could refer to an ideological or legal system whereby commercial activities are primarily regulated through private measures. Key Takeaways
What Is a Free Trade Area? A free trade area is a region in which a number of countries have signed a free trade agreement and maintain little or no barriers to trade in the form of tariffs or quotas among one another. Free trade areas facilitate international trade and the associated gains from trade
What Is Free Cash Flow to the Firm (FCFF)? Free cash flow to the firm (FCFF) represents the amount of cash flow from operations available for distribution after accounting for depreciation expenses, taxes, working capital, and investments. FCFF is a measurement of a company’s profitability after all expenses and reinvestments. It is one of the
What Is Free Cash Flow Per Share Free cash flow per share (FCF) is a measure of a company’s financial flexibility that is determined by dividing free cash flow by the total number of shares outstanding. This measure serves as a proxy for measuring changes in earnings per share. Ideally, a business will generate more
What Is Free Cash Flow to Equity (FCFE)? Free cash flow to equity is a measure of how much cash is available to the equity shareholders of a company after all expenses, reinvestment, and debt are paid. FCFE is a measure of equity capital usage. Understanding Free Cash Flow to Equity Free cash flow to
What are Freedom Shares? Freedom shares, also known as savings notes, are original issue discount bonds issued by the U.S. Treasury between May 1967 and October 1970 with a 30-year maturity. Key Takeaways The U.S. Treasury sold Freedom shares from May 1967 to October 1970.Freedom shares were issued at 81% of face value and sold
What Is Freed Up? In the initial public offering (IPO) world, “freed up” refers to the time after the lock-up period when investment bank underwriters are no longer obligated to sell securities at the agreed-upon price. When an investment bank is freed up, it is allowed to trade any remaining securities at the prevalent market price.
