Farm Team
DefinitionIn sports, a farm team, farm system, feeder team, practice squad, or nursery club, is generally a team or club whose role is to provide experience and training for young players, with an agreement that any successful players can move on to a higher level at a given point. This system can be implemented in many ways, both formally...
Fundamental Analysis
DefinitionFundamental analysis, in accounting and finance, is the analysis of a business's financial statements; health; and its competitors and markets. It also considers the overall state of the economy and factors including interest rates, production, earnings, employment, GDP, housing, manufacturing and management. There are two basic approaches that can be used: bottom up analysis and top down analysis. These...
Fair Market Value Purchase Option
What is a Fair Market Value Purchase Option A Fair Market Value Purchase Option is an agreement between a buyer and a seller that gives the buyer the right to purchase an asset at its fair market value at a specified time in the future. The fair market value is determined by an independent appraiser at the time of the...
Farmout
What is 'Farmout' Farmout is the assignment of part or all of an oil, natural gas or mineral interest to a third party. The interest may be in any agreed-upon form, such as exploration blocks or drilling acerage. The third party, called the "farmee," pays the farmor a sum of money up front for the interest and...
Fat Man Strategy
What is 'Fat Man Strategy ' A takeover defense tactic that involves the acquisition of a business or assets by a target company. The strategy is based on the premise that the bulked-up company - the "fat man" - would have reduced appeal to a hostile bidder, especially if the acquisition increases the acquirer's debt load or...
Fair Weather Fund
What is a 'Fair Weather Fund'? A fair weather fund is a type of investment fund that tends to perform well during periods of economic prosperity, but tends to underperform or suffer significant losses during times of economic downturn or recession. These types of funds typically invest in stocks and other securities that are expected to benefit from favorable market conditions,...
Fiat Money
DefinitionFiat money is a currency without intrinsic value that has been established as money, often by government regulation. Fiat money does not have use value, and has value only because a government maintains its value, or because parties engaging in exchange agree on its value. It was introduced as an alternative to commodity money and representative money. Commodity money...
Farm Credit System (FCS)
What is 'Farm Credit System - FCS' The Farm Credit System is a nationwide network of cooperative banks and associations that provide credit to farmers, agricultural concerns and related businesses. It was created by Congress in 1916 and was originally funded by the federal government to ensure American agriculture had a dependable source of credit. It is...
Falling Three Methods
What is 'Falling Three Methods' A bearish candlestick pattern that is used to predict the continuation of the current downtrend. This pattern is formed when the candlesticks meet the following characteristics: 1. The first candle in the pattern is a long red candlestick within a defined downtrend. 2. A series of ascending small-bodied candlesticks that trade...
Federal Discount Rate
What is the 'Federal Discount Rate' The federal discount rate is the interest rate set by the Federal Reserve on loans offered to eligible commercial banks or other depository institutions as a measure to reduce liquidity problems and the pressures of reserve requirements. The discount rate allows the federal reserve to control the supply of money and...