What Is the Federal Open Market Committee (FOMC)? The term Federal Open Market Committee (FOMC) refers to the branch of the Federal Reserve System (FRS) that determines the direction of monetary policy in the United States by directing open market operations (OMOs). The committee is made up of 12 members, including seven members of the
What Is the Food and Agriculture Organization (FAO)? The Food and Agriculture Organization (FAO) is a United Nations (UN) agency that works on international efforts to defeat hunger by developing agriculture. Key Takeaways The Food and Agriculture Organization (FAO), a UN agency, strives to combat hunger and reduce poverty globally by improving agricultural, forestry, and
What Is a Fool in the Shower? “Fool in the shower” is a metaphor attributed to Nobel laureate Milton Friedman, who likened a central bank that acted too forcefully to a fool in the shower. The notion is that changes or policies designed to alter the course of the economy should be done slowly, rather
What Is Fool’s Gold? Any flashy but ultimately worthless investment may be called fool’s gold in finance. The term originally referred only to iron pyrite, which is commonly mistaken for gold. Key Takeaways Any flashy but ultimately worthless investment may be called fool’s gold in finance.Fool’s gold originally referred only to iron pyrite, which is
What is the Footsie Footsie is slang for the Financial Times-Stock Exchange 100 Share Index (FTSE 100). BREAKING DOWN Footsie The Footsie is an index that tracks the 100 largest public companies by market capitalization that trade on the London Stock Exchange (LSE). The FTSE 100 represents more than 80 percent of the LSE’s market
What Is a Financial Operating Plan (FOP)? A financial operating plan (FOP) is a financial plan outlining the revenues and expenses over a period of time. A financial operating plan uses past performances, incomes, and expenses to forecast what to expect in the following years. It then incorporates past and recent trends into the planning
What Is Forbearance? The term forbearance refers to the temporary postponement of loan payments, typically for a mortgage or student loan. Lenders and other creditors grant forbearance as an alternative to forcing a property into foreclosure or leaving the borrower to default on the loan. The companies that hold loans and their insurers are often
What Is Forbes? The term Forbes refers to a media and publishing company that was founded in the United States in 1917. The company provides daily news coverage on business, technology, financial markets, personal finance, sports, and a wide array of other topics. It also publishes a magazine by the same name, which is put
What Is a Forced Conversion? Forced conversion occurs when the issuer of a convertible security exercises their right to call the issue. In doing so, the issuer forces the holders of the convertible security to convert their securities into a predetermined number of shares. Oftentimes, issuers choose to initiate a forced conversion when interest rates
What Is a Forced Initial Public Offering? A forced initial public offering—or “forced IPO” for short—is the process whereby a private company is required to go public due to having breached the thresholds set out by the Securities and Exchange Commission (SEC) and applicable regulations. Key Takeaways A forced IPO is the process whereby a
