Page 76 - PRIAA Glossary

FRONT OFFICE
A department in a financial firm which communicates directly with its clients, usually in the context of sales and trading in the financial markets.
FULL TERMINATION
The process whereby the entire transaction is terminated as opposed to simply partially terminating the transaction.
FULLY TRANSFERABLE
A fully transferable obligation that can be freely traded without any restriction on the type of investors who can hold the obligation and without any approval from the issuer of the obligation.
FUND
A collection of invested securities. Usually shorthand for mutual fund or hedge fund.
FUND ADMINISTRATOR
An individual or a set of individuals, as per whose discretion, under a set of rules usually, the capital/assets of the fund are utilised or invested. The fund administrator serves as
an independent third party that protects the interests of investors. The individual/individuals are also responsible for the disbursal of funds amongst participants.
FUND OF FUNDS
A managed investment fund where the pool of holdings are funds, usually managed by another investor rather than over-the-counter (OTC) or exchange-traded instruments. Fund of funds can reduce the impact of poor decisions by one fund manager.
FUNDED OPTION
An exotic option where the holder pays interest over the life of the transaction instead of an upfront premium.
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