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).