What Is a Follow-on Public Offer (FPO)? A follow-on public offering (FPO) is the issuance of shares to investors by a company listed on a stock exchange. A follow-on offering is an issuance of additional shares made by a company after an initial public offering (IPO). Follow-on offerings are also known as secondary offerings. Key
What Is Floating Production Storage and Offloading (FPSO)? Floating production storage and offloading (FPSO) refers to a floating vessel located near an offshore oil field, where oil is processed and stored until it can be transferred to a tanker for transporting and additional refining. FPSOs can range in structure from a converted former supertanker to a new
What Is a Forward Rate Agreement (FRA)? A forward rate agreements (FRA) is an over-the-counter contract between parties that determines the rate of interest to be paid on an agreed-upon date in the future. In other words, an FRA is an agreement to exchange an interest rate commitment on a notional amount. The forward rate
Fracking is short for “hydraulic fracturing”, which is the process of creating fractures in rocks and rock formations by injecting specialized fluid into cracks to force them to open further. The larger fissures allow more oil and gas to flow out of the formations and into the wellbore. It is easier to extract oil and
What Is a Fractal? The fractal indicator is based on a simple price pattern that is frequently seen in financial markets. Outside of trading, a fractal is a recurring geometric pattern that is repeated on all time frames. From this concept, the fractal indicator was devised. The indicator isolates potential turning points on a price
What Is Fractional Ownership? Fractional ownership is a percentage ownership in an asset. Fractional ownership shares in the asset are sold to individual shareholders who share the benefits of the asset such as usage rights, income sharing, priority access, and reduced rates. The usage benefits that the fractional owners receive are comparable to those of
What Is Fractional Reserve Banking? Fractional reserve banking is a system in which only a fraction of bank deposits are required to be available for withdrawal. Banks only need to keep a specific amount of cash on hand and can create loans from the money you deposit. Fractional reserves work to expand the economy by
What Is a Fractional Share? Less than one full share of equity is called a fractional share. Such shares may be the result of stock splits, dividend reinvestment plans (DRIPs), or similar corporate actions. Typically, fractional shares aren’t available from the stock market, and while they have value to investors, they are also difficult to sell. Key
What Is Fragmentation? The term fragmentation refers to a supply chain that is broken up into different parts. Companies spread the production process across different suppliers and manufacturers when they fragment. As such, companies use separate suppliers and component manufacturers to produce their goods and services. These entities are often in different countries, especially where
What Is the French Franc (F)? The French franc (F) was the national currency of France prior to France’s adoption of the euro (EUR) in January 2002. Prior to its replacement by the EUR, the franc was administered by the Bank of France and was comprised of 100 subunits, or ‘centimes.’ The franc was available
