Glossary beginning with F

F

Face value

This is the value of the bond or security as printed on the document. The face value represents the amount that the issuing company promises to pay at the time of maturity.

London Stock Exchange

Fill-or-Kill Order

An order that requires execution of the entire quantity immediately. If this order cannot be executed, it is cancelled. Also called Immediate or Cancel (IOC) in some markets.

Amman Stock Exchange

Free Float

Free float is that portion of a company’s overall share capital that is not “locked up” in firm hands (e.g. the founder or his/her family, the company’s management, certain institutions, etc.). Free float represents those shares that can be traded on the exchange at any time. Small shareholdings of private investors are also counted as free float, even though those shares are in firm hands.

SIX Swiss Exchange

Futures

A futures contract is an agreement or obligation to buy or sell a given quantity of a particular security, at a specified future date at a pre-determined price.

London Stock Exchange