What Is the Fortune 500? The term Fortune 500 refers to a list of 500 of the largest companies in the United States compiled by Fortune magazine every year. Companies are ranked by their annual revenues for their respective fiscal years. This list includes both public and private companies using publicly available revenue data. To
What Is a Forward Commitment? A forward commitment is a contractual agreement to carry out a transaction in the future. A forward commitment will specify the commodity or goods being sold, the price, payment date, and delivery date. Forward commitments are contained within several types of derivatives, including forward contracts, futures contracts, and swaps. Key Takeaways
What Is a Forward Contract? A forward contract is a customized contract between two parties to buy or sell an asset at a specified price on a future date. A forward contract can be used for hedging or speculation, although its non-standardized nature makes it particularly apt for hedging. Key Takeaways A forward contract is
What Is a Forward Dividend Yield? A forward dividend yield is an estimation of a year’s dividend expressed as a percentage of the current stock price. The year’s projected dividend is measured by taking a stock’s most recent actual dividend payment and annualizing it. The forward dividend yield is calculated by dividing a year’s worth
What Is a Forward Exchange Contract (FEC)? A forward exchange contract (FEC) is a special type of over-the-counter (OTC) foreign currency (forex) transaction entered into in order to exchange currencies that are not often traded in forex markets. These may include minor currencies as well as blocked or otherwise inconvertible currencies. An FEC involving such
What Is a Forward Forward? Forward forward agreements, also known as forward rate agreements, are a type of financial contract in which two parties agree to enter into a loan transaction at a future date. The party borrowing the funds agrees to repay the principal amount along with a premium, upon maturity of the loan.
What Is Forward Guidance? Forward guidance refers to the communication from a central bank about the state of the economy and the likely future course of monetary policy. It is the verbal assurance from a country’s central bank to the public about its intended monetary policy. Key Takeaways Forward guidance refers to the communication from a
What Is Forward Integration? Forward integration is a business strategy that involves a form of downstream vertical integration whereby the company owns and controls business activities that are ahead in the value chain of its industry, this might include among others direct distribution or supply of the company’s products. This type of vertical integration is
What Is Forward Looking? The term “forward looking” is a business term used to identify predictions about future business conditions, typically with publicly-traded corporations. The term is useful to stockholders, who consistently query company management about what they believe will happen in the future so that they can buy or sell shares accordingly. While no
What Is Forward Margin? The forward margin, or forward spread, reflects the difference between the spot rate and the forward rate for a certain commodity or currency. The difference between the two rates can either be a premium or a discount, depending on if the forward rate is above or below the spot rate, respectively.
