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Final Dividend
This is the dividend paid by a company to its shareholders out of
profits at the end of the financial year.
A motion to pay a final dividend must be approved at the
shareholder's Annual General Meeting (AGM) - where they have the
option of accepting the dividend recommended by the directors or of
reducing it - they cannot vote to increase it!
Flotation
The first occasion on which
a public company’s shares are offered widely to investors on the
market. Flotations are often referred to as new issues although it
is possible for companies already in the stockmarket to issue new
shares
Futures
A contract for the purchase and sale of a commodity, financial
instrument or index at a fixed price at a fixed date in the future.
Futures contracts were originally invented to allow those who
regularly buy and sell goods to protect themselves against future
changes in the price of those goods. In other words, the futures
markets evolved to allow producers or consumers to hedge their risk.
Firm Price
It is the price quoted by a market-maker at which he is
committed to deal with a broker or other market-maker. The only
occasion in which a market-maker may vary from offering a firm price
is when the
Stock Exchange has declared a fast market.
Financial risk
Shareholders risk resulting from
the use of debt. Debt causes financial risk by increase of the
variability of shareholders return and threatening the solvency of
the firm.
Forward trading
Forward trading refers to trading
where contracts traded today are settled at some future date at
prices decided today. Thus a contract to buy dollars at Rs.42 per
dollar after 3 months is a forward contract. The price is fixed
today but the settlement will be after 3 months.
Floating Stock
The fraction of the paid-up equity
capital of a company which normally participates in day to day
trading.
Forward Purchase
A forward purchase is when one
agrees to purchase shares at a future period at a certain price. He
does this in the belief that the prices will fall in future.
Foreign Institutional Investor (FII)
An overseas institutional investor permitted under Securities and
Exchange Board of India (SEBI) guidelines to trade in Indian
bourses.
Freeze
Orders entered into the system with price outside the
Operational range and orders with quantity greater than the Order
Quantity Freeze percentage is sent to the Exchange for approval.
Such orders are not reflected in the books and are 'frozen' till the
Exchange approves them.
Fully Paid Shares
Fully paid shares are those shares
which have been fully paid for (the face value).
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