Glossary of terms

A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z |

F

Fees

Investment companies earn their rewards in the form of dividends or interest payments, but they may also be entitled to fees in connection with putting together the deal and for monitoring progress of the investment.

Financial purchase

Where a financial institution buys a business and then decides the form of management to run it. This is different from a bought deal, where the existing management team play a larger role in the transaction.

Fixed and floating charges

Security for a loan to a business is normally provided by a charge on its assets. Fixed charges apply to specific assets such as plants or buildings, floating charges apply to all the company's assets.

Flagpole syndrome

Cynics say that when the chairman decides the company is important enough to have a flagpole in the car park it is a sure sign that the business is at the start of the slippery slope. (Sometimes known as the "crested-carpet" or "fountain-in-the-foyer" syndrome.)

Flip

Very short investment, where the exit is often identified pre-completion.

Flotation

See listing.

Focus

Investment companies earn their rewards in the form of dividends or interest payments, but they may also be entitled to fees in connection with putting together the deal and for monitoring progress of the investment.