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Front end fee (FEF)

See 'initial charge'.

Floating Rate Note

A note with a variable interest rate. The adjustments to the interest rate are usually made every three to six months and are tied to a money-market rate.

Future

An agreement to buy or sell a set amount of a commodity or security in a designated future month at a price agreed upon today by the buyer and seller. There may be no intention to execute the contract but to rely upon price changes in order to sell at a profit before delivery. A future is part of a class of instruments called derivatives, so named because they derive their value from the value of an underlying investment.