Extension Of Mortgage

When a mortgage on real estate falls due, it may be agreeable to both the borrower and the lender to extend it. An overdue mortgage is perfectly good and no signing of papers or any legal act is necessary in connection therewith to make the claim of the holder of the mortgage good if he is willing to postpone payment. It is very customary, however, to fill out, sign and record, what is known as an " extension of mortgage," for by so doing if there is an agreement for the extension for a definite time, it will prevent the lender from demanding payment previous to that time, and is, therefore, a protection to the borrower.

External Bonds (Or Loan)

An issue of government bonds sold abroad, as designated from money borrowed at home.


See " Dividend, Extra."

E. & 0. E. These letters stand for " errors and omissions excepted," and often appear on a statement of an account, so as to relieve the accountant from any personal liability for mistakes.

1 " Extension bonds " may not be secured by a first mortgage, but if so would certainly be an exception to the rule.

Face Value

The value of a security, regardless of any coupons, as appears in the security itself; the principal. (See " Par Value.")

Facilitating Process

See footnote to "International Movement of Gold," page 218.


A "factor" is ordinarily a commission merchant, differing from the common broker by having in his possession the goods which he offers for sale, although he may exhibit samples only. He is usually compensated in the way of a commission, but sometimes in other ways. Usually a broker or an ordinary agent trades in something not in his possession, delivery to be made either through him or directly between the parties between whom he is negotiating after the sale is effected. In the event of his advancing money on goods placed in his possession for selling, he has a legal claim to that extent upon the goods or proceeds after sale.


Bankruptcy, insolvency, or inability to meet one's engagements.


"Falling market; " prices declining.

False Certification

Same as " over-certification."

Fancy Options

"Puts-and-calls" and "spreads" at prices considerably at variance with current market quotations.

Fancy Price

A price too high for the time; not consistent with existing conditions or with prices of similar or other securities.

Fancy Stocks

High priced stocks which are looked upon as safe and desirable investments are what the investment banker understands by this term, but the stock exchange man thinks of a stock high in price and the quotations of which fluctuate widely as the result of manipulation.

F. and A. Interest or dividends payable semi-annually, February and August.