Glossary


F
Fair Value of an Option

The option value derived from a forecast of future volatility. Our estimated premiums are fair value because we base them on our adjusted forecast of future volatility.  See “Understanding Our Volatility Forecasts,” Ot080211.Pdf. 

Federal Funds

A market among commercial banks in which banks that need a short-term loan in order to meet regulatory reserve requirements are able to borrow from banks with excess funds. The Federal Funds rate is the interest rate charged on such loans.

Federal Reserve Board

The governing body of the Federal Reserve System, which regulates certain banks and is charged with setting national monetary policy.

Fee Revenue per (common) share

Fee revenue per common share

Fee Revenues

Fee revenues

FHLB Advances

Federal Home Loan Bank advances (for Thrifts)

FHLB Advances (Thrift Industry)

Funds borrowed from the regional Federal Home Loan Bank.

Financial Strength Rating

Financial Strength Rating: Value Line classifies 1,700 companies’ Financial Strength ratings from A++ to C, in nine steps. The lowest grade is reserved for companies experiencing serious financial difficulty. Balance sheet leverage, business risk, the level and direction of profits, cash flow, earned returns, cash, corporate size, and stock price, all contribute to a company’s relative position on the scale. The amount of cash on hand, net of debt, is also an important consideration.

Financial Times-Stock Exchange 100 (FT-SE 100)

A stock price index made up of 100 of the largest stocks traded on the London Stock Exchange. The index is published by The Financial Times, a London-based financial newspaper.

Finding Cost (Natural Gas [Diversified] and Petroleum Industries)

The amount of money spent per barrel to increase proved reserves through acquisitions, discovery, or enhanced recovery.

Fiscal Year End Date

Fiscal year end date

Fixed Charge Coverage

A measure of a company's ability to pay its fixed expenses on debt without resorting to more debt

Fixed Charge Coverage (Electric Utility Industries)

Pretax operating income after depreciation but before other income, interest charges, and Allowance for Funds Used During Construction (AFUDC), divided by long-term plus short-term interest plus twice the preferred dividend. Used as a measure of financial strength for an electric utility. A fixed charge coverage of 100 means that the operating income equals fixed expenses. A figure above 100 means that operating income exceeds fixed expenses, and vice versa.

Fixed Income Securities

An investment that provides a return in the form of fixed periodic payments and the eventual return of principal at maturity

Fixed-charge Coverage (Electric Utility Industry)

Pretax operating income after depreciation but before other income, interest charges, and Allowance for Funds Used During Construction (AFUDC), divided by long-term plus short-term interest plus twice the preferred dividend. Used as a measure of financial strength for an electric utility. A fixed charge coverage of 100 means that the operating income equals fixed expenses. A figure above 100 means that operating income exceeds fixed expenses, and vice versa.

Footnotes

Notes related to Value Line-presented company information

Free Cash Flow

Net income plus depreciation minus the total of dividends, capital expenditures, required debt repayments, and any other scheduled cash outlays.

Full Cost Accounting (Canadian Energy, Natural Gas Diversified, and Petroleum Industries)

A method of accounting under which all costs related to the exploration and development of oil and gas reserves are immediately expensed (a less conservative method than Successful Efforts Accounting).

Fully Diluted Earnings Per Share

Earnings per share assuming conversion of all convertible securities plus the exercise of all warrants and options. Similar to Diluted Earnings, which replaced Fully Diluted EPS for all years after December 15, 1997.

Fund Name

Name of the fund

Funds Borrowed

The amount of a REITs own funds used to fund mortgages

Funds Borrowed (Bank Industries)

Federal Funds (free reserves borrowed from other banks), securities sold under Repurchase Agreements ("repos"), commercial paper sold by bank holding companies and non bank subsidiaries, and any other non deposit sources of short-term funds.

Funds from Operations (FFO)

This measure is a REIT's net income, excluding gains or less from asset sales, plus depreciation and amortization.

Funds from Operations per (common) share

This measure is a REIT's net income, excluding gains or less from asset sales, plus depreciation and amortization, expressed on a per-share basis.

Funds Sold

Funds sold