of output or at different levels of salesvolume and projects revenue based on these different output levels. Flexible expenses Expenses for an individual or corporation that can be adjusted or completely dispessed with, e.g., luxury goods. Flexible mutual fund Fund that invests in a variety of securities in varying proportions in order to maximize shareholderreturns while maintaining a low level of risk. Flight to quality The tendency of investors to move toward safer investments (often government bonds) during periods of high economic uncertainty. Flip-flop note Note that allows investors to switch between two different types of debt. Flip side In the context of general equities, opposite side to a proposition or position (buy, if sell is the proposition and vice versa). Flipping Buying shares in an initial public offering (IPO), and then selling the shares immediately after the start of publictrading to turn an immediate profit. Float Currency: Exchange rate policy that does not limit the range of the market rate.Equities: Number of shares of a corporation that are outstanding and available for trading by the public, excluding insiders or restricted stock on a when-issued basis. A stock's volatility is inversely correlated to its float. Floater A bond whose interest rate varies with the interest rate of another debt instrument, e.g., a bond that has the interest rate of the Treasury bill +.25%. Floating debt Short-termdebt that is renewed and refinanced constantly to fund capital needs of a firm or institution. Floating exchange rate A country's decision to allow its currency value to change freely. The currency is not constrained by central bank intervention and does not have to maintain its relationship with another currency in a narrow band. The currency value is determined by trading in the foreign exchange market. Floating exchange rate system Purchase or sale of the currencies of other nations by a central bank for the purpose of influencing foreign exchange rates or maintaining orderly foreign exchange markets. Also called foreign-exchange market intervention. Floating lien General attachment against a company'sassets or against a particular class of assets. Floating Rate Interest rate that is reset periodically, usually every couple of months or sometimes daily. Floating-rate contract An guaranteed investment instrument whose interest payment is tied to some variable (floating) interest rate benchmark, such as a specific-maturity Treasuryyield. Floating-rate note (FRN) Note whose interest payment varies with short-terminterest rates. Floating-rate payer In an interest rate swap, the counterparty who pays a rate based on a reference rate, usually in exchange for a fixed-rate payment. Floating-rate preferred Preferred stock paying dividends that vary with short-terminterest rates. Floating securities Securities bought in a broker's name and resold quickly to attain a profit in a short amount of time. Floating supply The aggregate of securities believed to be available for immediate purchase, that is, in the hands of dealers and investors wanting to sell. Floor The area of a stock exchange where activetrading occurs. Also the price at which a stop order is activated (when the price drops low enough to activate such an order). In context of interest rates, a level which