This literally means “without dividend.” The buyer of shares when they are quoted ex-dividend is not entitled to receive a declared dividend. It is the interval between the announcement and the payment of the next dividend. Typically, a stock’s price moves up by the dollar amount of the dividend as the ex-dividend date approaches, then falls by the amount of the dividend after that date.

Ex-Dividend Date

The first day of trading when the seller, rather than the buyer, of a stock will be entitled to the most recently announced dividend payment. A stock that has gone ex-dividend is marked with x in newspaper listings on that date.

Exempt Securities

Instruments exempt from the registration requirements of the Securities Act of 1933 or the margin requirements of the SEC Act of 1934. Such securities include government bonds, agencies, munis, commercial paper and private placements.

Ex-rights

In connection with a rights offering, shares of stock that are trading without the rights attached.

Ex-rights Date

The date on which a share of common stock begins trading ex-rights.

Fast Market

A situation where markets are hectic and turbulent such that prices are rapidly changing. As a result, prices quoted on electronic trading systems may not be up to date. In the UK, SEAQ prices become indicative rather than firm during a fast market as a result.

Federal Reserve System

The central banking system of the USA, made up of a number of regional Federal Reserve banks that regulate banking activities.

Fiduciary

An individual or institution responsible for acting for the benefit of another in specified matters or for holding funds in trust.

Financial Services Act 1986

Principal UK legislation relating to the regulation of the financial services industry.

Fixed Price Offer

A method of implementing an Offer for Subscription or Offer for Sale. When a company is issuing shares, it will invite applications for shares at a predetermined price under a fixed price offer.

Floating Rate

A rate of interest which varies over time, depending on the market rates of interest.

Flowback

Term used to describe the cancellation of issued Depositary Receipts that are the result of market trading.

Free Delivery / Free Payment

A settlement situation whereby one side of the trade is delivered in the absence of the other side, i.e. the free delivery of securities in a bonus issue or the free payment of dividends.

FTSE 100

Financial Times Stock Exchange 100 index – the index containing the top 100 listed shares in the UK.

FTSE 350

The index containing the top 350 listed UK shares. This index is used for calculating the industry baskets that give average ratios for the companies in each sector.

FTSE All Share Index

The index containing virtually all major listed shares in the UK, comprising of some 900 shares.

FTSE Eurotop 100

The index containing the top 100 shares in Europe