probability density function that is statistically self-similar. That is, in different increments of time, the statistical characteristics remain the same. Fractal Market Hypothesis The fractal market hypothesis states that (1) a market consists of many investors with different investment horizons, and (2) the information set that is important to each investment horizon is different. As long as the market maintains this fractal structure, with no characteristic time scale, the market remains stable. When the market's investment horizon becomes uniform, the market becomes unstable because everyone is trading based upon the same information set. Theory due to Ed Peters. Fractional Brownian Motion A biased random walk. Unlike Standard Brownian Motion, the odds are biased in one direction or the other. It is like playing with loaded dice. Fractional coins Metal currency minted in denominations of 50, 25, and 10 cents, and minor coins (5 cents and 1 cent). Fractional discretion order A type of order that gives the broker discretion to alter the price, up or down, within a specific fractionalrange in order to guarantee an execution. Fractional Noise A noise which is not completely independent of previous values. See Fractional Brownian Motion, 1/f Noise, White Noise. Fractional share Stocks amounting to less than one full share, usually resulting from splits, acquisitions, exchanges, or dividend reinvestment programs. Franchise agreement Contract by which a domestic company (franchisor) licenses its trade name and/or business system and practices for a fee to an independent company (franchisee) in a foreign market. Franchising Provision of a specialized sales or service strategy, support assistance, and possibly an initial investment in the franchise in exchange for periodic fees. Frankfurt Stock Exchange The largest of Germany's eight securitiesexchanges, operated by Deutsche Borse AS. Freddie Mac (Federal Home Loan Mortgage Corporation) A Congressionally charteredcorporation that purchases residential mortgages in the secondary market from S&Ls, banks, and mortgage bankers and securities for sale in the capital markets. Free Alongside Ship (FAS) An Incoterm (FAS) that means the seller is responsible for the cost of transporting and delivering goods alongside a vessel in a port in his or her country. Since the buyer has responsibility for export clearance under FAS, it is not a practical Incoterm for U.S. exports. FAS should be used only for ocean shipments since risk and responsibility shift from seller to buyer when the goods are placed within the reach of the ship's tackle (crane). Free on board (FOB) Implies that distribution services like transport and handling performed on goods up to the customs frontier (of the economy from which the goods are classed as merchandise.) are included in the price. Free box A bank vault or other suitable storage place for the securities of a firm's customer. Free Carrier (FCA) An Incoterm meaning that the cost, risk and responsibility shift from the seller to the buyer when the goods are turned over to a carrier at a designated place. Free cash flows Cash not required for operations or for reinvestment. Often defined as earnings before interest (often obtained from the operating income line on the income statement) less capital