Income Basket Income categories where various income sources are allocated based on tax rules in the U.S. Every basket has a net profit or loss that cannot be used to set off gains or losses from others to gain tax benefits. … [Read more...]
Index Fund
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Index Fund Pool of funds from investors that is tailored to match a stock market index’s returns. … [Read more...]
Inverted Market
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Inverted Market Related to premium. Futures market where the contracts with dates nearest the present month are selling at a higher price than those with dates in a distant month. … [Read more...]
Intermediate/Medium-Term Debt
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Intermediate/Medium-Term Debt Fixed income security that matures in the following 3 – 10 years. Maturity date is a very important parameter in evaluating bond products and is used to calculate yields. … [Read more...]
Internal Rate of Return
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Internal Rate of Return The rate of return when given dollar weightage. Discount rate applicable to make the NPV (net present value) of investment zero. The rate that, when applied to the future cash flows of a bond, equals its price when discounted back to present date. … [Read more...]
Income Stock
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Income Stock High dividend paying common stock category that offers limited profitable investment choices. … [Read more...]
Income Fund
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Income Fund Mutual funds that offer good or favorable returns from the assets invested in. … [Read more...]
In-the-money
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In-the-money Related to put. Put option with a strike price above that of the underlying futures price. Else, a call option that has a strike price lower than the futures price underlying it. … [Read more...]
Internal Revenue Service – IRS
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Internal Revenue Service IRS U.S. Government agency that oversees collection and enforcement of taxes. Established in 1862 by President Lincoln, IRS operates under Department of the Treasury. Also oversees gift, corporate, estate and excise taxes. … [Read more...]
International Energy Agency – IEA
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International Energy Agency International agency founded in 1973-74 that gives policy advice to member countries. Primary responsibility is to focus on the policies regarding environmental protection, economic development and energy security. … [Read more...]
Inventory Accounting
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Inventory Accounting Accounting system dealing with valuing and accounting for changes in inventoried assets. Many reasons may cause these changes including deterioration, depreciation, change in customer taste, obsolescence, increased demand etc. … [Read more...]
Industrial Revenue Bond (IRB)
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Industrial Revenue Bond (IRB) Bonds offered on behalf of different corporations by local government bodies. … [Read more...]
Indenture
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Indenture A formal agreement between borrower and lender that outlines specific terms of the issuance of the bond. Describes rights of bondholders and legal obligations of the issuer. … [Read more...]
Identifiable Asset
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Identifiable Asset Asset acquired through an acquisition of another business that can be given a fair value and may be expected to yield a certain benefit to the acquirer in future. … [Read more...]
Idiosyncratic Risk
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Idiosyncratic Risk Risk that does not arise from market risk or market factors. Unsystematic risks or company specific risks that can be addressed and avoided through proper portfolio diversification. … [Read more...]
Immediate Settlement
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Immediate Settlement Settlement and delivery within 5 business days for securities. … [Read more...]
Immunization
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Immunization The creation of a liability and a matching asset that will offset any changes that may occur in their values. … [Read more...]
Immunization Strategy
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Immunization Strategy A strategy used with a bond portfolio that aims at eliminating the risk inherent in the portfolio that arises from a change in the interest rate through the use of maturity terms. … [Read more...]
Implied Call
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Implied Call Homeowner’s right with respect to the mortgage to pay in advance of due date or call at any time. … [Read more...]
Implied Rate
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Implied Rate Rate of interest determined by the difference between the forward/futures rate and the spot rate. … [Read more...]
