1 Face Value
The value of a bond that appears on its face. Also referred to as par value or principal.
2 Facility
A generic term which includes loans, commitments, lines, letter, etc: Any arrangement by which a bank accepts credit exposure to an obligor.
3 Facility Fee
Fee imposed for making a line of credit available.
4 Factor
A financial institution that buys a firm’s accounts receivables and collects the debt. [See also Factoring]
5 Factor Analysis
An analysis aimed at finding a small number of factors that describe most of the variation in a large number of correlated variables. (Similar to a principal components analysis.) [See also Arbitrage pricing theory]
6 Factor Model
A model in which each stock’s return is generated by common factors, called the systematic sources of risk. [See also Arbitrage pricing theory]
7 Factor Portfolio
A well-diversified portfolio constructed to have a beta of 1.0 on one factor and a beta of zero on any other factor. Factor portfolios will serve as...
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© 2006 Springer Science+Business Media, Inc.
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(2006). F. In: Lee, CF., Lee, A.C. (eds) Encyclopedia of Finance. Springer, Boston, MA. https://doi.org/10.1007/978-0-387-26336-6_6
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DOI: https://doi.org/10.1007/978-0-387-26336-6_6
Publisher Name: Springer, Boston, MA
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