dictionary of finance and investment terms 5th edition phần 4 doc

< previous page page_219 next page > Page 219 predictions of future levels of inflation, interest rates, and employment. See also ECONOMETRICS. Forecasting can also refer to various PROJECTIONS used in business and financial planning. FORECLOSURE process by which a homeowner who has not made timely payments of principal and interest on a mortgage loses title to the home. The holder of the mortgage, whether it be a bank, a savings and loan, or an individual, must go to court to seize the property, which may then be sold to satisfy the claims of the mortgage. FOREIGN CORPORATION 1. corporation chartered under the laws of a state other than the one in which it conducts business. Because of inevitable confusion with the term ALIEN CORPORATION, out-of-state corporation is preferred. 2. corporation organized under the laws of a foreign country; the term ALIEN CORPORATION is usually preferred. FOREIGN CORRUPT PRACTICES SECURITIES EXCHANGE ACT OF 1934 amendment passed in 1977 providing internal controls and penalties aimed at curtailing bribery by publicly held companies of foreign government officials and personnel. FOREIGN CROWD New York Stock Exchange members who trade on the floor in foreign bonds. FOREIGN CURRENCY FUTURES AND OPTIONS futures and options contracts based on foreign currencies, such as the Japanese yen, Deutsche mark, British pound, and French franc. The buyer of a foreign currency futures contract acquires the right to buy a particular amount of that currency by a specific date at a fixed rate of exchange, and the seller agrees to sell that currency at the same fixed price. Call options give call buyers the right, but not the obligation, to buy the underlying currency at a particular price by a particular date. Call options on foreign currency futures give call buyers the right to a long underlying futures contracts. Those buying put options have the right to sell the underlying currencies at a specific price by a specific date. Most buyers and sellers of foreign currency futures and options do not exercise their rights to buy or sell, but trade out of their contracts at a profit or loss before they expire. SPEC-ULATORS hope to profit by buying or selling a foreign currency futures or options contract before a currency rises or falls in value. HEDGERS buy or sell such contracts to protect their cash market position from fluctuations in currency values. These contracts are traded on SECURITIES AND COMMODITIES EXCHANGES throughout the world, including the CHICAGO MERCANTILE EXCHANGE (CME), FINEX, the Mid-America Commodity Exchange, and the PHILADELPHIA STOCK EXCHANGE (PHLX). FOREIGN DIRECT INVESTMENT 1. investment in U.S. businesses by foreign citizens; usually involves majority stock ownership of the enterprise. 2. joint ventures between foreign and U.S. companies. < previous page page_219 next page > < previous page page_220 next page > Page 220 FOREIGN EXCHANGE instruments employed in making payments between countriespaper currency, notes, checks, bills of exchange, and electronic notifications of international debits and credits. FOREIGN EXCHANGE RATE see EXCHANGE RATE. See also FOREIGN EXCHANGE. FORFEITURE loss of rights or assets due to failure to fulfill a legal obligation or condition and as compensation for resulting losses or damages. FORM 8-K Securities and Exchange Commission required form that a publicly held company must file, reporting on any material event that might affect its financial situation or the value of its shares, ranging from merger activity to amendment of the corporate charter or bylaws. The SEC considers as material all matters about which an average, prudent investor ought reasonably to be informed before deciding whether to buy, sell, or hold a registered security. Form 8-K must be filed within a month of the occurrence of the material event. Timely disclosure rules may require a corporation to issue a press release immediately concerning an event subsequently reported on Form 8-K. FORM 4 document, filed with the Securities and Exchange Commission and the pertinent stock exchange, which is used to report changes in the holdings of (1) those who own at least 10% of a corporation's outstanding stock and (2) directors and officers, even if they own no stock. When there has been a major change in ownership, Form 4 must be filed within ten days of the end of the month in which the change took place. Form 4 filings must be constantly updated during a takeover attempt of a company when the acquirer buys more than 10% of the outstanding shares. FORM T National Association of Securities Dealers (NASD) form for reporting equity transaction executed after the market's normal hours. FORM 10-K annual report required by the Securities and Exchange Commission of every issuer of a registered security, every exchange-listed company, and any company with 500 or more shareholders or $1 million or more in gross assets. The form provides for disclosure of total sales, revenue, and pretax operating income, as well as sales by separate classes of products for each of a company's separate lines of business for each of the past five years. A source and application of funds statement presented on a comparative basis for the last two fiscal years is also required. Form 10-K becomes public information when filed with the SEC. FORM 10-Q quarterly report required by the Securities and Exchange Commission of companies with listed securities. Form 10-Q is less comprehensive than the FORM 10-K annual report and does not require that figures be audited. It may cover the specific quarter or it may be < previous page page_220 next page > < previous page page_221 next page > Page 221 cumulative. It should include comparative figures for the same period of the previous year. FORM 13D form used to comply with SCHEDULE 13D. FORM 13G short form of SCHEDULE 13D for positions acquired in the ordinary course of business and not to assume control or influence. FORM 3 form filed with the Securities and Exchange Commission and the pertinent stock exchange by all holders of 10% or more of the stock of a company registered with the SEC and by all directors and officers, even if no shares are owned. Form 3 details the number of shares owned as well as the number of warrants, rights, convertible bonds, and options to purchase common stock. Individuals required to file Form 3 are considered insiders, and they are required to update their information whenever changes occur. Such changes are reported on FORM 4. FORMULA INVESTING investment technique based on a predetermined timing or asset allocation model that eliminates emotional decisions. One type of formula investing, called dollar cost averaging, involves putting the same amount of money into a stock or mutual fund at regular intervals, so that more shares will be bought when the price is low and less when the price is high. Another formula investing method calls for shifting funds from stocks to bonds or vice versa as the stock market reaches particular price levels. If stocks rise to a particular point, a certain amount of the stock portfolio is sold and put in bonds. On the other hand, if stocks fall to a particular low price, money is brought out of bonds into stocks. See also CONSTANT DOLLAR PLAN; CONSTANT RATIO PLAN. FORTUNE 500 listings of the top 500 U.S. corporations compiled by Fortune magazine. The companies are ranked by 12 indices, among them revenues; profits; assets; stockholders' equity; market value; profits as a percentage of revenues, assets, and stockholders' equity; earnings per share growth over a 10-year span; total return to investors in the year; and the 10-year annual rate of total return to investors. In separate listings, companies also are ranked by performance and within states. Headquarters city, phone number, and the name of the chief executive officer are included. In another listing 1,000 companies are ranked within 61 different industry groups. FORWARD CONTRACT purchase or sale of a specific quantity of a commodity, government security, foreign currency, or other financial instrument at the current or SPOT PRICE, with delivery and settlement at a specified future date. Because it is a completed contractas opposed to an options contract, where the owner has the choice of completing or not completinga forward contract can be a COVER for the sale of a FUTURES CONTRACT. See HEDGE. FORWARD EXCHANGE TRANSACTION purchase or sale of foreign currency at an exchange rate established now but with payment < previous page page_221 next page > < previous page page_222 next page > Page 222 and delivery at a specified future time. Most forward exchange contracts have one-, three-, or six-month maturities, though contracts in major currencies can normally be arranged for delivery at any specified date up to a year, and sometimes up to three years. FORWARD PRICING Securities and Exchange Commission requirement that open-end investment companies, whose share price is always determined by the NET ASSET VALUE of the outstanding shares, base all incoming buy and sell orders on the next net asset valuation of fund shares. See also INVESTMENT COMPANY. FOR YOUR INFORMATION (FYI) prefix to a security price quote by a market maker that indicates the quote is "for your information" and is not a firm offer to trade at that price. FYI quotes are given as a courtesy for purposes of valuation. FVO (for valuation only) is sometimes used instead. 401(k) PLAN plan whereby employees may elect, as an alternative to receiving taxable cash in the form of compensation or a bonus, to contribute pretax dollars to a qualified tax-deferred retirement plan. Elective deferrals are limited to $10,000 a year (the amount is revised each year by the IRS based on inflation). Many companies, to encourage employee participation in the plan, match employee contributions anywhere from 10% to 100% annually. All employee contributions and employer matching funds can be invested in several options, usually including several stock mutual funds, bond mutual funds, a GUARANTEED INVESTMENT CONTRACT, a money market fund, and company stock. Employees control how the assets are allocated among the various choices, and can usually move the money at least once a year, and sometimes even daily. Withdrawals from 401(k) plans prior to age 59 1 Ú2 are subject to a 10% penalty tax except for death, disability, termination of employment, or qualifying hardship. Withdrawals after the age of 59 1 Ú2 are subject to taxation in the year the money is withdrawn. "Highly compensated" employees are subject to special limitations. 401(k) plans have become increasingly popular in recent years, in many cases supplanting traditional DEFINED BENEFIT PENSION PLANS. Employees favor them because they cut their tax bills in the year of contribution and their savings grow tax deferred until retirement. Companies favor these plans because they are less costly than traditional pension plans and also shift the responsibility for asset allocation to employees. Also called cash or deferred arrangement (CODA) or salary reduction plan. 403(b) PLAN type of INDIVIDUAL RETIREMENT ACCOUNT (IRA) covered in Section 403(b) of the Internal Revenue Code that permits employees of qualifying nonprofit organizations to set aside tax-deferred funds. FOURTH MARKET direct trading of large blocks of securities between institutional investors to save brokerage commissions. The fourth market is aided by computers, notably by a computerized subscriber service < previous page page_222 next page > < previous page page_223 next page > Page 223 called INSTINET, an acronym for Institutional Networks Corporation. INSTINET is registered with the Securities and Exchange Commission as a stock exchange and numbers among its subscribers a large number of mutual funds and other institutional investors linked to each other by computer terminals. The system permits subscribers to display tentative volume interest and bid-ask quotes to others in the system. FRACTIONALDISCRETION ORDER buy or sell order for securities that allows the broker discretion within a specified fraction of a point. For example, "Buy 1000 XYZ at 28, discretion 1/2 point" means that the broker may execute the trade at a maximum price of 28 1/2. FRACTIONAL SHARE unit of stock less than one full share. For instance, if a shareholder is in a dividend reinvestment program, and the dividends being reinvested are not adequate to buy a full share at the stock's current price, the shareholder will be credited with a fractional share until enough dividends accumulate to purchase a full share. FRANCHISE In general: (1) privilege given a dealer by a manufacturer or franchise service organization to sell the franchisor's products or services in a given area, with or without exclusivity. Such arrangements are sometimes formalized in a franchise agreement, which is a contract between the franchisor and franchisee wherein the former may offer consultation, promotional assistance, financing, and other benefits in exchange for a percentage of sales or profits. (2) The business owned by the franchisee, who usually must meet an initial cash investment requirement. Government: legal right given to a company or individual by a government authority to perform some economic function. For example, an electrical utility might have the right, under the terms of a franchise, to use city property to provide electrical service to city residents. FRANCHISED MONOPOLY monopoly granted by the government to a company. The firm will be protected from competition by government exclusive license, permit, patent, or other device. For example, an electric utility will be granted the exclusive right to generate and sell electricity in a particular locality in return for agreeing to be subject to governmental rate regulation. FRANCHISE TAX state tax, usually regressive (that is, the rate decreases as the tax base increases), imposed on a state-chartered corporation for the right to do business under its corporate name. Franchise taxes are usually levied on a number of value bases, such as capital stock, capital stock plus surplus, capital, profits, or property in the state. FRANKFURT STOCK EXCHANGE the largest of eight German securities exchanges, operated by DEUTSCHE BORSE AG. There are three membership classes: banks and other credit institutions that trade securities for their own accounts or on behalf of third parties; Kursmaklers, < previous page page_223 next page > < previous page page_224 next page > Page 224 official brokers who act as intermediaries for securities trades in the Official Market and at the same time determine their prices; and Free Maklers, free brokers who act as intermediaries in any securities. Branches of foreign brokerage firms, which under national laws are not banks, are treated as banks. Stocks, fixed-income securities and warrants are traded on the floor and in two electronic trading systemsXetra for stocks and IBIS-R for fixed income securities. Settlement has been computerized since 1970, and takes place on the second business day after the trade. Trading hours are 10:30 A.M. to 1:30 P.M., Monday through Friday. The IBIS system runs from 8:30 A.M. to 5 P.M. FRAUD intentional misrepresentation, concealment, or omission of the truth for the purpose of deception or manipulation to the detriment of a person or an organization. Fraud is a legal concept and the application of the term in a specific instance should be determined by a legal expert. FREDDIE MAC 1. nickname for FEDERAL HOME LOAN MORTGAGE CORPORATION (FHLMC). 2. mortgage-backed securities, issued in minimum denominations of $25,000, that are packaged, guaranteed, and sold by the FHLMC. Mortgage-backed securities are issues in which residential mortgages are packaged and sold to investors. FREE AND OPEN MARKET market in which price is determined by the free, unregulated interchange of supply and demand. The opposite is a controlled market, where supply, demand, and price are artificially set, resulting in an inefficient market. FREE BOX securities industry jargon for a secure storage place ("box") for fully paid ("free") customers' securities, such as a bank vault or the DEPOSITORY TRUST COMPANY. FREED UP securities industry jargon meaning that the members of an underwriting syndicate are no longer bound by the price agreed upon and fixed in the AGREEMENT AMONG UNDERWRITERS. They are thus free to trade in the security on a market basis. FREE ON BOARD (FOB) transportation term meaning that the invoice price includes delivery at the seller's expense to a specified point and no further. For example, "FOB our Newark warehouse" means that the buyer must pay all shipping and other charges associated with transporting the merchandise from the seller's warehouse in Newark to the buyer's receiving point. Title normally passes from seller to buyer at the FOB point by way of a bill of lading. FREERIDING 1. practice, prohibited by the Securities and Exchange Commission and the National Association of Securities Dealers, whereby an underwriting SYNDICATE member withholds a portion of a new < previous page page_224 next page > < previous page page_225 next page > Page 225 securities issue and later resells it at a price higher than the initial offering price. 2. practice whereby a brokerage client buys and sells a security in rapid order without putting up money for the purchase. The practice violates REGULATION T of the Federal Reserve Board concerning broker-dealer credit to customers. The penalty requires that the customer's account be frozen for 90 days. See also FROZEN ACCOUNT. FREE RIGHT OF EXCHANGE ability to transfer securities from one name to another without paying the charge associated with a sales transaction. The free right applies, for example, where stock in STREET NAME (that is, registered in the name of a broker-dealer) is transferred to the customer's name in order to be eligible for a dividend reinvestment plan. See also REGISTERED SECURITY. FREE STOCK (1) stock that is fully paid for and is not assigned as collateral. (2) stock held by an issuer following a PRIVATE PLACEMENT but that can be traded free of the restrictions bearing on a LETTER SECURITY. FREEZE OUT put pressure on minority shareholders after a takeover to sell their shares to the acquirer. FREIT see FINITE LIFE REAL ESTATE INVESTMENT TRUST. FRICTIONAL COST in an INDEX FUND, the amount by which the fund's return is less than that of the index it replicates. The difference, assuming it is not otherwise adjusted, represents the fund's management fees and transaction costs. FRIENDLY TAKEOVER merger supported by the management and board of directors of the target company. The board will recommend to shareholders that they approve the takeover offer, because it represents fair value for the company's shares. In many cases, the acquiring company will retain many of the existing managers of the acquired company to continue to run the business. A friendly takeover is in contrast to a HOSTILE TAKEOVER, in which management actively resists the acquisition attempt by another company or RAIDER. FRINGE BENEFITS compensation to employees in addition to salary. Some examples of fringe benefits are paid holidays, retirement plans, life and health insurance plans, subsidized cafeterias, company cars, stock options, and expense accounts. In many cases, fringe benefits can add significantly to an employee's total compensation, and are a key ingredient in attracting and retaining employees. For the most part, fringe benefits are not taxable to the employee, though they are generally tax-deductible for the employer. FRONT-END LOAD sales charge applied to an investment at the time of initial purchase. There may be a front-end load on a mutual fund, for instance, which is sold by a broker. Annuities, life insurance policies, and limited partnerships can also have front-end loads. From the < previous page page_225 next page > < previous page page_226 next page > Page 226 investor's point of view, the earnings from the investment should make up for this up-front fee within a relatively short period of time. See also INVESTMENT COMPANY. FRONT OFFICE sales personnel in a brokerage, insurance, or other financial services operation. Front office workers produce revenue, in contrast to BACK OFFICE workers, who perform administrative and other support functions for the front office. FRONT RUNNING practice whereby a securities or commodities trader takes a POSITION to capitalize on advance knowledge of a large upcoming transaction expected to influence the market price. In the stock market, this might be done by buying an OPTION on stock expected to benefit from a large BLOCK transaction. In commodities, DUAL TRADING is common practice and provides opportunities to profit from front running. FROZEN ACCOUNT Banking: bank account from which funds may not be withdrawn until a lien is satisfied and a court order is received freeing the balance. A bank account may also be frozen by court order in a dispute over the ownership of property. Investments: brokerage account under disciplinary action by the Federal Reserve Board for violation of REGULATION T. During the period an account is frozen (90 days), the customer may not sell securities until their purchase price has been fully paid and the certificates have been delivered. The penalty is invoked commonly in cases of FREERIDING. FULL COUPON BOND bond with a coupon rate that is near or above current market interest rates. If interest rates are generally about 8%, for instance, a 7 1/2% or 9% bond is considered a full coupon bond. FULL DISCLOSURE In general: requirement to disclose all material facts relevant to a transaction. Securities industry: public information requirements established by the Securities Act of 1933, the Securities Exchange Act of 1934, and the major stock exchanges. See also DISCLOSURE. FULL FAITH AND CREDIT phrase meaning that the full taxing and borrowing power, plus revenue other than taxes, is pledged in payment of interest and repayment of principal of a bond issued by a government entity. U.S. government securities and general obligation bonds of states and local governments are backed by this pledge. FULL REPLACEMENT COVERAGE see GUARANTEED REPLACEMENT COST COVERAGE INSURANCE. < previous page page_226 next page > < previous page page_227 next page > Page 227 FULL-SERVICE BROKER broker who provides a wide range of services to clients. Unlike a DISCOUNT BROKER, who just executes trades, a full-service broker offers advice on which stocks, bonds, commodities, and mutual funds to buy or sell. A full-service broker may also offer an ASSET MANAGEMENT ACCOUNT; advice on financial planning, tax shelters, and INCOME LIMITED PARTNERSHIPS; and new issues of stock. A full- service broker's commissions will be higher than those of a discount broker. The term brokerage is gradually being replaced by variations of the term financial services as the range of services offered by brokers expands. FULLTRADING AUTHORIZATION freedom, even from broad guidelines, allowed a broker or adviser under a DISCRETIONARY ACCOUNT. FULLY DEPRECIATED said of a fixed asset to which all the DEPRECIATION the tax law allows has been charged. Asset is carried on the books at its RESIDUAL VALUE, although its LIQUIDATING VALUE may be higher or lower. FULLY DILUTED EARNINGS PER (COMMON) SHARE figure showing earnings per common share after assuming the exercise of warrants and stock options, and the conversion of convertible bonds and preferred stock (all potentially dilutive securities). Actually, it is more analytically correct to define the term as the smallest earnings per common share that can be obtained by computing EARNINGS PER SHARE (EPS) for all possible combinations of assumed exercise or conversion (because antidilutive securitiessecurities whose conversion would add to EPSmay not be assumed to be exercised or converted). Under accounting rules adopted in 1998, companies must report EPS on two bases: Basic EPS, which does not count stock options, warrants, and convertible securities, and (fully) Diluted EPS, which includes those securities. See also DILUTION; EARNINGS PER SHARE; PRIMARY EARNINGS PER (COMMON) SHARE. FULLY DISTRIBUTED term describing a new securities issue that has been completely resold to the investing public (that is, to institutions and individuals and other investors rather than to dealers). FULLY INVESTED said of an investor or a portfolio when funds in cash or CASH EQUIVALENTS are minimal and assets are totally committed to other investments, usually stock. To be fully invested is to have an optimistic view of the market. FULLY VALUED said of a stock that has reached a price at which analysts think the underlying company's fundamental earnings power has been recognized by the market. If the stock goes up from that price, it is called OVERVALUED. If the stock goes down, it is termed UNDERVALUED. FUND see FUND FAMILY; FUNDING; MUTUAL FUND. < previous page page_227 next page > < previous page page_228 next page > Page 228 FUNDAMENTAL ANALYSIS Economics: research of such factors as interest rates, gross national product, inflation, unemployment, and inventories as tools to predict the direction of the economy. Investment: analysis of the balance sheet and income statements of companies in order to forecast their future stock price movements. Fundamental analysts consider past records of assets, earnings, sales, products, management, and markets in predicting future trends in these indicators of a company's success or failure. By appraising a firm's prospects, these analysts assess whether a particular stock or group of stocks is UNDERVALUED or OVERVALUED at the current market price. The other major school of stock market analysis is TECHNICAL ANALYSIS, which relies on price and volume movements of stocks and does not concern itself with financial statistics. FUNDED DEBT 1. debt that is due after one year and is formalized by the issuing of bonds or long-term notes. 2. bond issue whose retirement is provided for by a SINKING FUND. See also FLOATING DEBT. FUNDED PENSION PLAN pension plan in which all liabilities are fully funded. A pension plan's administrator knows the potential payments necessary to make to pensioners over the coming years. In order to be funded, the plan must have enough capital contributions from the plan sponsor, plus returns from investments, to pay those claims. Employees are notified annually of the financial strength of their pension plans, and whether or not the plans are fully funded. If the plans are not funded, the PENSION BENEFIT GUARANTY CORPORATION (PBGC), which guarantees pension plans, will act to try to get the plan sponsor to contribute more money to the plan. If a company fails with an underfunded pension plan, the PBGC will step in to make the promised payments to pensioners. FUND FAMILY mutual fund company offering funds with many investment objectives. A fund family may offer several types of stock, bond, and money market funds and allow free switching among their funds. Large no-load fund families include American Century, Fidelity, Dreyfus, T. Rowe Price, Scudder, Strong, and Vanguard. Most major brokerage houses such as Merrill Lynch, Smith Barney and Paine Webber also sponsor fund families of their own. Many independent firms such as American Funds, Loomis-Sayles, Putnam, and Pioneer distribute their funds with a sales charge through brokerage firms and financial planners. Many investors find it convenient to place most of their assets with one or two fund families because of the convenience offered by such switching privileges. In recent years, several discount brokerage firms have offered the ability to shift assets from one fund family to another, making it less important than it had been to consolidate assets in one fund family. See also INVESTMENT COMPANY. < previous page page_228 next page > [...]... ACT OF 19 84 eliminated the deductibility of "excess compensation" and imposed an excise tax The TAX REFORM ACT OF 1986 covered matters of clarification GOLD FIXING daily determination of the price of gold by selected gold specialists and bank officials in London, Paris, and Zürich The < previous page page_ 241 next page > < previous page page_ 242 next page > Page 242 price is fixed at 10:30 A.M and. .. corporate profitsharing or pension plan that guarantees a specific rate of return on the invested capital over the life of the contract Many defined contribution plans, such as 40 1(k) and 40 3(b) plans, offer guaranteed investment contracts as investment options to employees Although the insurance company takes all market, credit, and interest rate risks on the investment portfolio, it can profit if its... out of circulation The observation is named for Sir Thomas Gresham, master of the mint in the reign of Queen Elizabeth I GRIT see GRANTOR RETAINED INCOME TRUST (GRIT) < previous page page_ 246 next page > < previous page page_ 247 next page > Page 247 GROSS DOMESTIC PRODUCT (GDP) market value of the goods and services produced by labor and property in the United States GDP is made up of consumer and. .. acting on behalf of the FEDERAL OPEN MARKET COMMITTEE, contacts primary dealers for bid and offer prices Primary dealers are those banks and investment houses approved for direct purchase and sale transactions with the Federal Reserve System in its OPEN MARKET OPERATIONS GODFATHER OFFER takeover offer that is so generous that management of the target company is unable to refuse it out of fear of shareholder... page_ 243 next page > < previous page page_ 244 next page > Page 244 GOVERNMENTS 1 securities issued by the U.S government, such as Treasury bills, bonds, notes, and savings bonds Governments are the most credit-worthy of all debt instruments since they are backed by the FULL FAITH AND CREDIT of the U.S government, which if necessary can print money to make payments Also called TREASURIES 2 debt issues of. .. previous page page_ 240 next page > < previous page page_ 241 next page > Page 241 traded in physical form, and also through futures and options contracts Certain gold-oriented mutual funds also hold small amounts of gold bullion GOLD CERTIFICATE paper certificate providing evidence of owner-ship of gold bullion An investor not wanting to hold the actual gold in his or her home because of lack of security,... C Broker A ''gives up" the name of Broker B, so that the record shows a transaction between Broker B and Broker C even though the trade was actually executed between Broker A and Broker C 2 another application of the term: A customer of brokerage firm ABC Co travels out of town and, finding no branch office of ABC, places an order with DEF Co., saying he is an account of ABC After confirming the account... soybeans or wheat, common shares of the same company, and dollar bills are all familiar examples of fungibles Fungibility (interchangeability) of listed options, by virtue of their common expiration dates and strike prices, makes it possible for buyers and sellers to close out their positions by putting offsetting transactions through the OPTIONS CLEARING CORPORATION See also OFFSET; STRIKE PRICE FUN MONEY... exchange An advantage of such a transfer is to widen trading in the security GRAHAM AND DODD METHOD OF INVESTING investment approach outlined in Benjamin Graham and David Dodd's landmark book Security Analysis, published in the 1930s Graham and Dodd founded the modern discipline of security analysis with their work They believed that investors should buy stocks with undervalued assets and that eventually... Therefore, theoretically, prices of all goods and service could increase and the implicit price deflator could decrease See also PERSONAL INFLATION RATE G-8 FINANCE MINISTERS the finance ministers of the eight largest industrial countries: Canada, France, Germany, Great Britain, Italy, Japan, Russia and the United States Meetings of the G-8 take place at least once a year and are important in coordinating . the Securities and Exchange Commission and the pertinent stock exchange by all holders of 10% or more of the stock of a company registered with the SEC and by all directors and officers, even. corporation's outstanding stock and (2) directors and officers, even if they own no stock. When there has been a major change in ownership, Form 4 must be filed within ten days of the end of the month. is pledged in payment of interest and repayment of principal of a bond issued by a government entity. U.S. government securities and general obligation bonds of states and local governments