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Our Affiliations • Internet Resources • Glossary of Terms

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Facilitator
An organization that services other institutions, but does not take title to goods.

FIFO Inventory (First In, First Out)
A system of writing off inventory into cost of goods sold, in which the items purchased first are written off first. Referred to as first-in, first-out.

Financial Buyer
An individual, investment group or investment company seeking acquisitions that provide favorable profits and cash flow.

Financial Capital
Common stock, preferred stock, bonds, and retained earnings. Financial capital appears on the corporate balance sheet under long-term liabilities and equity.

Financial Disclosure
Presentation of financial information to the investment community.

Financial Leverage
A measure of the amount of debt used in the capital structure of the firm.

Financial Ratios
The relationship that exists between various items appearing in balance sheets, income accounts, and occasionally other items. These ratios are used to measure and evaluate the economic condition and operating effectiveness of a firm

Financing Contingencies
Conditions that preclude the completion of a transaction subject to obtaining financing satisfaction to the buyer and his creditors.

Fixed Costs
Costs that remain relatively constant regardless of the volume of operations. Examples are rent, depreciation, property taxes, and executive salaries.

Flipping
The sale of a company within a year or two of its being bought.

Float
The difference between the corporation's recorded cash balance on its books and the amount credited to the corporation by the bank.

Formula Values (formula investing)
An investment technique. One formula calls for shifting funds from common shares to preferred shares or bonds as the market average rises above a certain predetermined point and returning funds to common share investments as the market average declines.

Founders' Stock
Stock owned by the original founders of a company. It often carries special voting rights that allow the founders to maintain voting privileges in excess of their proportionate ownership.

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Our Affiliations • Internet Resources • Glossary of Terms