Fair price

Fair price

Fair price

The equilibrium price for futures contracts. Also called the theoretical futures price, which equals the spot price continuously compounded at the cost of carry rate for some time interval.

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Fail

Fail

Fail

A trade is said to fail if on settlement date either the seller fails to deliver securities in proper form or the buyer fails to deliver funds in proper form.

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Factoring

Factoring

Factoring

Sale of a firm’s accounts receivable to a financial institution known as a factor.

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Factor model

Factor model

Factor model

A way of decomposing the factors that influence a security’s rate of return into common and firm-specific influences.

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Factor analysis

Factor analysis

Factor analysis

A statistical procedure that seeks to explain a certain phenomenon, such as the return on a common stock, in terms of the behavior of a set of predictive factors.

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