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Welcome to our Glossary section! We are very happy to see you here! This is the place where we will do our best to include as many terms from the accounting and financial world as possible so that we fully respond to your research and business needs.

Our team will constantly work on the content so that we make sure that you always stay satisfied with the information you obtain. We have sorted the terms alphabetically so that it is convenient for you to navigate through the section. In addition, we have integrated a special division dedicated to curious terms from the stock market. We hope you find them as much enjoyable as we do.

Sb Team wishes you a pleasant and fruitful navigation through our Glossary section!

Free float: A percentage of free traded stocks. Usually these are all of the assets not in possession of the majority and the big minority shareholders. This is a very important indicator for the company’s level of liquidity.

Final goods and services: The goods and the services which have fully gone through the production steps and they reached the final consumer.

Fixed costs: Costs which are independent of the production volume and are related to fixed, unchangeable factors.

Factor income: Income derived from the application of the production factors – rent, salary, interest and profit, which are received by the owners of these factors – land, labour and capital.

Fiscal policy: A government policy regarding the government expenses, incomes and budget balancing.

Fiscal drag: Applying of progressive or proportionate taxation with the purpose of not allowing excessive increase in the incomes and the collective demand.

Financial Statement: A written report of the financial condition of a firm. Financial statements include the balance sheet, income statement, statement of changes in net worth and statement of cash flow.

Fixed assets: Company’s assets which are categorized as long-term assets. These are tangible property, buildings, land, equipment, computers, etc. The fixed assets are not expected to be converted to cash any sooner than at least one year from the moment of their acquisition.

Final liquidation balance: A balance prepared for the property after the repayment to the creditors. In case when the assets were not enough and in order the creditors’ satisfaction is achieved, the difference is presented in the balance as a loss or liability.

Fixed general expenses: Indirect production costs which stay relatively constant, regardless of the production volume. Such expenses are: depreciation, rent, property and equipment maintenance, management and administration of the production expenses.

Financial activity: Activity which leads to changes in the amount and the composition of the deposited own capital and the attracted by the company funds.

Foreign direct investments (FDI): investment of foreign assets into domestic structures, equipment, and organizations. It does not include foreign investment into the stock markets. Foreign direct investment is thought to be more useful to a country than investments in the equity of its companies because equity investments are potentially “hot money” which can leave at the first sign of trouble, whereas FDI is durable and generally useful whether things go well or badly.

Foreign activity: A company which is a daughter company, associate or a branch which activity are based or managed in a country or currency different from those of the reporting company.

Financial asset: Every asset which is: monetary funds; a tool of the own capital of another company; contractual right; the exchange of financial assets or liabilities with another company in set conditions which are potentially in favour of the company; the receiving of monetary funds or other assets from another company.

Financial liability: Every liability which is: contractual obligation for transferring monetary funds or other financial assets to another company; contractual obligation for exchange of financial assets with another company in conditions which are not particularly favourable for the company.
A tool of the own capital: Every contract which proves a residual part of a certain company’s assets minus all of its liabilities.

Factoring: A trading activity where one person undertakes the obligation on behalf of another person to collect his receivables.

Forward: A deal in the future with which the parties agree one of them to sell and the other to buy on a preliminary agreed date a certain quantity of assets at a certain price and certain conditions for execution.

Fundamental analysis: Analytical method using economic indicators, business and political news with the purpose of identification of purchase or sale opportunities. According to the fundamental analysis the past cannot be used for making future predictions.

Floating interest rate: Interest rate which varies with the changes in the demand and the supply of the credits’ market.

Fiscal policy: The policy of the government for defining the government costs and the collectable taxes as a mean for achieving the country’s economic purposes.

Franchise: A form of business organization in which a firm which already has a successful product or service (the franchisor) enters into a continuing contractual relationship with other businesses (franchisees) operating under the franchisor’s trade name and usually with the franchisor’s guidance, in exchange for a fee, commission or other payment.

Financial lease: A lease contract which transfers all the risks and benefits related to the ownership of the asset on the lessee.