What Is Facultative Reinsurance? Facultative reinsurance is coverage purchased by a primary insurer to cover a single risk—or a block of risks—held in the primary insurer’s book of business. Facultative reinsurance is one of two types of reinsurance (the other type of reinsurance is called treaty reinsurance). Facultative reinsurance is considered to be more of a
What Is a Failed Break? A failed break occurs when a price moves through an identified level of support or resistance but does not have enough momentum to maintain its direction. Since some traders look to establish positions when a breakout occurs, in the breakout direction, they may opt to close those trades if the
What Is Failure To Deliver (FTD)? Failure to deliver (FTD) refers to a situation where one party in a trading contract (whether it’s shares, futures, options, or forward contracts) doesn’t deliver on their obligation. Such failures occur when a buyer (the party with a long position) doesn’t have enough money to take delivery and pay for
What Is the Fair Credit Billing Act? The Fair Credit Billing Act is a 1974 federal law enacted to protect consumers from unfair credit billing practices and enables individuals to dispute unauthorized charges and undelivered goods or services. Key Takeaways The Fair Credit Billing Act provides consumers with protection from unfair billing practices. Billing errors
What Is the Fair Debt Collection Practices Act (FDCPA)? The Fair Debt Collection Practices Act (FDCPA) is a federal law that limits the actions of third-party debt collectors who are attempting to collect debts on behalf of another person or entity. The law restricts the ways that collectors can contact debtors as well as the
What Is the Fair Funds for Investors Provision? The Fair Funds for Investors provision was introduced in 2002 under Section 308(a) of the Sarbanes-Oxley Act (SOX). The Fair Funds for Investors provision was put into place to benefit investors who have lost money because of the illegal or unethical activities of individuals or companies that
What Is the Fair Housing Act? The Fair Housing Act is a federal law enacted in 1968 that prohibits discrimination in the purchase, sale, rental, or financing of housing—private or public—based on race, skin color, sex, nationality, or religion. The statute has been amended several times, including in 1988 to add disability and family status.
What Is Fair Market Value? Fair market value (FMV) is the price a product would sell for on the open market assuming that both buyer and seller are reasonably knowledgeable about the asset, are behaving in their own best interests, are free of undue pressure, and are given a reasonable time period for completing the transaction. Given
What Is Fair Market Value Purchase Option? A fair market value (FMV) purchase option is the right, but not the obligation, to buy a leased asset at the end of the lease term for a price that represents the item’s then-current worth. The fair market value purchase option does not provide the purchase price in
What Is a Fairness Opinion? A fairness opinion is a report that evaluates the facts of a merger, acquisition, carve-out, spin-off, buyback, or another type of business purchase. It provides an opinion about whether or not the proposed stock price is fair to the selling or target company. Key Takeaways A fairness opinion is a report regarding
