Secured Loans
A special type of corporation created by the Tax Reform Act of 1984 that is
designed to provide a tax incentive for exporting U.S.-produced goods.
Foreign tax credit
Home country credit against domestic income tax. Received in return for foreign
taxes paid on foreign derived earnings.
Forex
See: Foreign exchange.
Forfaiter
Purchaser of promises to pay issued by importers.
Formula basis
A method of selling a new issue of common stock in which the S.E.C. declares
the registration statement effective on the basis of a price formula rather than on
a specific range.
Forward
See: forward contract.
Forward contract
A cash market transaction in which delivery of the commodity is deferred until
after the contract has been made. It is not standardized and is not traded on
organized exchanges. Although the delivery is made in the future, the price is
determined at the initial trade date.
Forward cover
Purchase or sale of forward foreign currency in order to offset a known future
cash flow.
Forward delivery
A transaction in which the settlement will occur on a specified date in the future
at a price agreed upon on the trade date.
