Related Words

Collection Float: The presentation of a negotiable instrument for payment, or the conversion of any accounts receivable into cash.

Net Float: Sum of disbursement float and collection float.

Floating-Rate Payer: Note whose interest payment varies with short-term interest rates.

Floating-Rate Preferred: In an interest rate swap, the counterparty who pays a rate based on a reference rate, usually in exchange for a fixed-rate payment.

Floatplane: A water-based aircraft with one or more mounted pontoons, as differentiated from a hulled SEAPLANE [Flying Boat], but often used generically.

Free Float: Securities industry procedure whereby delivery of securities sold is made to the buying customer's bank without requiring immediate payment; thus a credit agreement of sorts. Antithesis of d . . . View Full Definition

Floating-Rate Note (FRN): An guaranteed investment instrument whose interest payment is tied to some variable (floating) interest rate benchmark, such as a specific-maturity Treasury yield.

Floating-Rate Contract: The aggregate of securities believed to be available for immediate purchase, that is, in the hands of dealers and investors wanting to sell.

Floating Supply: Securities bought in a broker's name and resold quickly to attain a profit in a short amount of time.

Floating Securities: General attachment against a company's assets or against a particular class of assets.