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Face Value: Either the stated value of a bond (e.g., $1,000) or an arbitrary bookkeeping value of stocks. Also known as Par Value, Nominal Value.

Fair Market Value: Value based on current market value and supply and demand conditions.

Family of Funds: Group of mutual funds managed by the same investment management company.

Fannie Mae: Federal National Mortgage Association. Government-sponsored, publicly owned corporation that buys and sells FHA-insured and other agency-guaranteed or insured mortgages and some conventional mortgages.

Federal National Mortgage Association (FNMA): see Fannie Mae.

FDIC: Federal Deposit Insurance Corporation. Government agency that insures repayment of savings and time deposits if a member bank becomes insolvent. Mutual fund shares are not bank deposits and are not FDIC-insured.

Federal Funds: Any immediately usable funds that can be utilized to pay for money market instruments and U.S. government securities transactions.

Federal Funds Conversion: Process in which an investment check for a money market fund is converted into cash. Also known as Overnight Conversion.

Federal Funds Rate: Negotiated interest rate charged by a bank that loans excess funds to another bank that needs to increase its reserves. The rate is determined by the forces of supply and demand.

Federal Home Loan Bank: System supplying credit reserves for savings and loan associations, cooperative banks and mortgage lenders in a manner similar to the Federal Reserve's role with commercial banks.

Federal Reserve System: Its main functions are to regulate the national money supply, sets reserve requirements for members, supervise the printing of currency at the mint, act as a clearing house for the transfer of funds throughout the banking system and examine member banks to make sure they meet various Federal Reserve regulations.

Fiduciary: Person, company or association holding assets in trust for another.

FINRA: Financial Industry Regulatory Authority. The largest non-governmental regulator for all securities firms doing business in the United States. Created in July 2007 through the consolidation of NASD and the member regulation, enforcement and arbitration functions of the New York Stock Exchange, FINRA is dedicated to investor protection and market integrity through effective and efficient regulation and complementary compliance and technology-based services.

Fiscal Year: Firm's accounting year. Annual financial statements are as of this date.

Fixed Annuity: A fixed annuity is an insurance contract that offers a fixed payment and a guaranteed interest rate on the contract.

Fixed Income Security: Security that pays a fixed rate of return. This usually refers to government, corporate, or municipal bonds, which pay a fixed rate of interest until the bonds mature and to preferred stock, paying a fixed dividend.

Foreign Exchange: Transactions methods used to make payments between countries.

Foreign Investment: Investment check in U.S. dollars drawn from banks outside of the United States.

Foreign Risk: The prices and yields of foreign bonds can be affected by political and economic instability or changes in currency exchange rates.

Form 1099-DIV: Reports taxable income and capital gain distributions over $10; provides general reporting instructions.

Form 1099-B: Reports gross proceeds from any sales (redemptions) of mutual fund shares, excluding money market funds, IRAs and certain qualified retirement accounts.

Form 1099-R: Reports a distribution made from a retirement plan or IRA. If this distributed amount was not rolled over into another tax-deferred account you will need to include all or part of it in your ordinary income for tax purposes.

Form 5498: Reports all IRA, SEP, and SIMPLE rollover and regular contributions for the 2000 tax year.

Fractional Share: Portion of a share of stock.

Freddie Mac: Federal Home Loan Mortgage Corporation. Private corporation that sells participation certificates and CMOs backed by pools of conventional mortgage loans.

Federal Home Loan Mortgage Corporation (FHLMC): see Freddie Mac.

Front-end Load: Sales charge paid by the client at the time of purchase of mutual fund shares; deducted out of the client's initial investment amount.

"Full Faith and Credit": Guarantee by the U.S. Government to repay the principal and interest on certain government-issued debt obligations.

Fundamental Analysis: Method of analyzing the prospects of a company's security by assessing sales, assets, earnings and other factors to forecast its future stock price movements.

Futures Contract: Transferable obligation to buy or sell a specific amount of a commodity or financial instrument at a particular price on a specified future date.

Futures Option: Ability to buy and/or sell a commodity or financial instrument at a particular price on a specific future date.