Secured Loans
General: having neither a short nor long position in a stock. Clean.
Market: characterized by horizontal price movement, usually the result of low
activity.
Equities: to execute without commission or markup.
Flat benefit formula
Method used to determine a participants benefits in a defined benefit plan by
multiplying months of service by a flat monthly benefit.
Flat price (also clean price)
The quoted newspaper price of a bond that does not include accrued interest.
The price paid by purchaser is the full price.
Flat price risk
Taking a position either long or short that does not involve spreading.
Flattening of the yield curve
A change in the yield curve where the spread between the yield on a long-term
and short-term Treasury has decreased. Compare steepening of the yield curve
and butterfly shift.
Flat trades
(1) A bond in default trades flat; that is, the price quoted covers both principal
and unpaid, accrued interest. (2) Any security that trades without accrued interest
or at a price that includes accrued interest is said to trade flat.
Flight to quality
The tendency of investors to move towards safer, government bonds during
periods of high economic uncertainty.
Flip-flop note
Note that allows investors to switch between two different types of debt.
Flipside
Used in the context of general equities. Opposite side to that which was just
mentioned (buy, if sell mentioned and vice versa).
