F

Face Amount - The named dollar amount of coverage provided by a life insurance policy. Generally, for a whole life or term policy, the face amount is the same as the death benefit - the amount paid to the named beneficiary upon the insured's death.

Final Expenses - Expenses that occur at the death of an individual that must be paid before concluding the probate process. Examples include estate taxes, medical bills, funeral expenses, legal fees, probate costs, outstanding debts, appraisal fees and the like.

Fiscal Year - A company's accounting year.

Fixed Annuities - An investment contract offered by an insurance company that pays a fixed return (which may be periodically adjusted by the insurance company) and whose principal is guaranteed by the insurance company to be repaid at a specified date. Any earnings on the account remain tax-deferred until the interest is withdrawn from the contract. The contract can be converted to a guaranteed stream of fixed payments to the owner, either for life or for a specified period.

Fixed Expenses - Expenses that are set and difficult to change or minimize. Examples include mortgage payments, car payments, utility bills, and income and social security taxes.

Fixed-Income Securities - Investments, primarily bonds and bond funds, that generate a predictable flow of income over a specified period.

Fixed Investment - A security or investment account that pays a fixed rate of return.

Float - The number of shares outstanding and available for trading by the public.

Form 1099- The Internal Revenue Service (IRS) form used by companies to report annual dividends and interest paid to an individual. The company paying the dividends and interest will send a copy of the form to the individual and the IRS.

401(k) - A qualified, tax-deferred retirement plan offered by employers, which allows employees to save a percentage of their current salary for retirement.

Front-End Load (Sales Charge) - A front-end load (or front end sales charge) is usually associated with Class A shares of a mutual fund. It is a sales commission, over and above the net asset value of the shares purchased, which is charged at the time you purchase shares. It's computed as a percentage of the dollar amount you're investing. For example, if you pay a front load of 3% on a $10,000 transaction, $300 of your $10,000 is paid to the mutual fund distributor, and the remaining $9,700 is used to purchase shares. The fund distributor keeps a small portion of the sales charge for its services, and the bulk of the sales charge is paid to the selling broker/dealer firm or financial institution. The agent selling the funds to you receives a portion of the sales charge from his/her firm. You can find a listing of the sales charges you will pay in the front of your fund's prospectus, or you can ask your broker.

Fund Objective - A fund's primary goal — for example, current income, capital appreciation or preservation of principal.