Secured Loans
Fail
A trade is said to fail if on settlement date either the seller fails to deliver
securities in proper form or the buyer fails to deliver funds in proper form.
Fair-and-equitable test
A set of requirements for a plan of reorganization to be approved by the
bankruptcy court.
Fair game
An investment prospect that has a zero risk premium.
Fair market price
Amount at which an asset would change hands between two parties, both having
knowledge of the relevant facts. Also referred to as market prices.
Fair price
The equilibrium price for futures contracts. Also called the theoretical futures
price, which equals the spot price continuously compounded at the cost of carry
rate for some time interval.
Fair price provision
See:appraisal rights.
Fall Down
Used in the context of general equities. May not be able to produce as indicated
in ones advertised market, due to getting less help from other parties (than
anticipated) or due to changing market conditions.
Fallout risk
A type of mortgage pipeline risk that is generally created when the terms of the
loan to be originated are set at the same time the sale terms are established. The
risk is that either of the two parties, borrower or investor, fails to close and the
loan falls out of the pipeline.
Fama, Eugene F
Founder of the Efficient Markets Hypothesis. Finance professor at the University
of Chicago.
