Pool factorThe outstanding principal balance divided by the original principal balance with the result expressed as a decimal. Pool factors are published monthly by the Bond Buyer newspaper for Ginnie Mae, Fannie Mae, and Freddie Mac (Federal Home Loan Mortgage Corporation) MBSs.
Common factorCommon factor
An element of return that influences many assets. According to multiple factor risk models, the common factors determine correlations between asset returns. Common factors include size (often measured by market capitalization), valuation measures such as price to book value ratio and dividend yield, industries and risk indices.
Factor Price Equalization TheoremFactor Price Equalization Theorem
One of the major theoretical results of the Heckscher-Ohlin Model with at least as many goods as factors, showing that free and frictionless trade will cause FPE between two countries if they have identical, linearly homogeneous technologies and their factor endowments are sufficiently similar to be in the same diversification cone.
Factor costFactor cost
The cost of the factors used in production. The term is used especially when the value of economic activity in a sector or an economy can be measured or valued either at "factor cost," adding up payments to factors, or at "market value," adding up revenues from goods sold.
Factor augmentingFactor augmenting
Said of a technological change or technological difference if production functions differ by scaling of a factor input only: F2(V1,V2)=F1(lV1,V2), where F1(·) and F2(·) are the production functions being compared, V1 is the factor being augmented, V2 is a vector of all other factor inputs, and l is a constant.
V Vacancy FactorV Vacancy Factor
The estimated percentage of vacancies in a rental project. May be based on past records of the property, or a professional guess if a new project. Surrounding area buildings, it similar, may be used for comparison.
Further SuggestionsMultifactor model
Present value factor
Total factor productivity
Factor of production
Old line factoring
Factor Proportions Model
Net benefit to leverage factor
International factor movement
Direct factor content
One factor APT
price earnings growth factor