Glossary

F

• First Day Close The closing price at the end of the first day of trading reflects not only how well the lead manager priced and placed the deal, but what the near-term trading is likely to be. For example, IPOs that shoot up 100% or 200% on their first day of trading are likely to fall back in price on subsequent days due to profit taking. Conversely, IPOs that break offer price immediately are likely to drop further as institutions bail out. Breaking IPO price right out of the box is a poor reflection on the lead manager's pricing and placement.
• First preferred stock That preffered stock which gets preference in the payment of the dividend or for the assets before the payment is made to other preffered stockholder & equity stockholder.  
• Fixed Income Security A type of security that pays fixed interest at regular intervals of time ranging from month to a year. These securities include gilt-edged securities, bonds (taxable as well as tax-free), preference shares and debentures. Since there is low risk as compared to the equity, there is no or little scope of capital appreciation.
• Fixed Price offers An issuer company is allowed to freely price the issue. The basis of issue price is disclosed in the offer document where the issuer discloses in detail about the qualitative and quantitative factors justifying the issue price. The issuer company can mention a price band of 20% (cap in the price band should not be more than 20% of the floor price) in the Draft offer documents filed with SEBI and actual price can be determined at a later date before filing of the final offer document with SEBI / ROCs.
• Fixed Price offers An issuer company is allowed to freely price the issue. The basis of issue price is disclosed in the offer document where the issuer discloses in detail about the qualitative and quantitative factors justifying the issue price. The issuer company can mention a price band of 20% (cap in the price band should not be more than 20% of the floor price) in the Draft offer documents filed with SEBI and actual price can be determined at a later date before filing of the final offer document with SEBI / ROCs.
• Flipping  When an investor buys an IPO at the offering price and then sells the stock soon after it starts trading on the open market. The underwriters try to discharge flipping by initialing placing stock in the hands of long term investors particularly once that have promised aftermarket orders.
• Float When a company is publicly traded, a distinction is made between the total number of shares outstanding and the number of shares in circulation, referred to as the float. The float consists of the company's shares held by the general public. For example, if a company offers 2 million shares to the public in an IPO and has 20 million shares outstanding, its float is  2 million shares.
• Float When a company is publicly traded, a distinction is made between the total number of shares outstanding and the number of shares in circulation, referred to as the float. The float consists of the company's shares held by the general public. For example, if a company offers 2 million shares to the public in an IPO and has 20 million shares outstanding, its float is  2 million shares.
• FMC Forward Market Commission is the Regulatory Authority in India for commodity futures trading.
• Follow on public offering (FPO) FPO is when an already listed company makes either a fresh issue of securities to the public or an offer for sale to the public, through an offer document. An offer for sale in such scenario is allowed only if it is made to satisfy listing or continuous listing obligations.