What Is a Flat Benefit Formula? A flat benefit formula is one method for calculating a pension payout from an employee’s defined benefit plan. In a flat benefit formula, the employer multiplies an employee’s months or years of service by a predetermined flat rate. This method may be compared with the unit benefit formula, which pays a
What Is the Flat Yield Curve? The flat yield curve is a yield curve in which there is little difference between short-term and long-term rates for bonds of the same credit quality. This type of yield curve flattening is often seen during transitions between normal and inverted curves. The difference between a flat yield curve
What Are Fleet Cards? Fleet cards are a type of payment card that allows businesses to manage expenses associated with the vehicles they own and operate. Fleet cards, also known as fuel cards, act just like charge cards and are provided by major oil and/or specialized credit companies. Businesses provide their personnel—namely transportation employees—with fleet
What Are Flex Dollars? Schools or employers will issue flex dollars for purchasing items such as meals, covering health costs, or other expenses. Flex dollars are usually either an electronic currency or a portion of an employee’s wage structure. Flex money accounts typically work on a declining balance system similar to a debit card. An individual using the flex dollar account decides how to spend funds;
What Is a Flexible Fund? A flexible fund is a mutual fund or other pooled investment that has broad flexibility for making investment decisions and allocations. Flexible funds can be U.S. regulated or offshore funds. These funds give the portfolio manager broad latitude for making portfolio investments. As a result, they are highly susceptible to
What Is a Flexible Expense? A flexible expense is a discretionary purchase that can be altered or eliminated without a significant downside. These are non-essential expenses that stand in contrast to fixed expenses. Flexible expenses should be included in a budget to manage an individual’s overall finances. Economists often use the term consumer discretionary spending
What Is a Flexible Manufacturing System (FMS)? A flexible manufacturing system (FMS) is a production method that is designed to easily adapt to changes in the type and quantity of the product being manufactured. Machines and computerized systems can be configured to manufacture a variety of parts and handle changing levels of production. Key Takeaways A flexible
What Is a Flexi-Cap Fund? A flexi-cap fund is a type of mutual fund that is not restricted to investing in companies with a predetermined market capitalization. This type of fund structure will be indicated in the fund’s prospectus. A flexi-cap fund can provide the fund manager with greater investment choices and diversification possibilities. Key
What Is a Flexible Exchange Option? Flexible exchange options, or FLEX options, are nonstandard options that allow both the writer and purchaser to negotiate various terms. Terms that are negotiable include the exercise style, strike price, and expiration date, as well as other features and benefits. These options also give investors the opportunity to trade on a
What Is Flight to Quality? Flight to quality occurs when investors in aggregate begin to shift their asset allocation away from riskier investments and into safer ones, for instance out of stocks and into bonds. Uncertainty in the financial or international markets usually causes this herd-like behavior. However, at other times, the move may be
