Glossary – Letter F


The online Merriam-Webster Dictionary says, a fiduciary is “a person in a position of authority whom the law obligates to act solely on behalf of the person he or she represents and in good faith.”

Financials Sector

This sector would include banks, consumer finance institutions, insurance and reinsurance companies and brokers, and real estate management and development companies and real estate investment trusts (REITs).

Fixed Income investments

Investments that pay you predetermined interest or dividend income such as government and corporate bonds and debentures.

Flat money

Money (e.g., bank notes and coins) that is legal tender by government declaration and is not backed by gold or silver. Its intrinsic value is divorced from its monetary face value (i.e., the value stated on it), which rests on public confidence in the issuing authority—usually the central bank.

Note: All currency in circulation in Canada is flat money.

Flow-through share

A special type of common share issued by oil and gas or mineral exploration companies that allows certain tax deductions

Foreign exchange

Investing in different currencies to make money on the changes in exchange rates.  Also known as FX trading.

Front-end load

A sales charge or commission investors pay when an investment is initially purchased.


A derivative product whereby the seller agrees to deliver to the buyer an agreed amount of an asset at a specified price on a future date.  Futures are traded on an exchange.