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...]
Implied Repo Rate
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Implied Repo Rate Related to cheapest to deliver issue. Rate that can be earned by a seller of future contract through purchasing an issue and ensuring delivery on the date of settlement. … [Read more...]
Implied Volatility
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Implied Volatility The predicted expected volatility in return generated by a stock's return calculated from maturity date, option price, exercise price, riskless rate of return. A model, for example, the Black/Scholes is used to make the calculations. … [Read more...]
Import-Substitution Development Strategy
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Import-Substitution Development Strategy Strategy of development used in Latin American countries and LDCs that focus on import substitution. This is achieved through protectionism and promoted growth in economy in the future. … [Read more...]
Imputation Tax System
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Imputation Tax System Taxation provision that ensures that investors who benefit from a dividend also benefit from tax credit for corporate taxes that have been paid by the business. … [Read more...]
Income Beneficiary
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Income Beneficiary The individual or entity who is in receipt of a trust’s income. … [Read more...]
Income Bond
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Income Bond Bonds wherein the interest payments are made contingent to adequate earnings being received by the firm. Such debt is commonly used in the reorganization process undertaken for a collapsing firm. … [Read more...]
Income Statement (Statement of Operations)
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Income Statement (Statement of Operations) Statement listing the expenses, revenues, and income (revenues minus expenses) of a business collated over a specific time period. … [Read more...]
Income Tax
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Income Tax Government imposed tax on financial income. Businesses and individuals are required to file tax returns annually to determine tax payable. Income tax is one of the primary sources of funding for the government. … [Read more...]
Incremental Cash Flows
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Incremental Cash Flows The gap between the cash flows of a business with and without a project. Measures the additional cash flows accrued from projects. … [Read more...]
Incremental Costs and Benefits
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Incremental Costs and Benefits Benefits and costs that will accrue if a specific action was followed as compared to the events that will occur if such action is not taken. … [Read more...]
Incremental Internal Rate of Return
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Incremental Internal Rate of Return The rate of return on an incremental investment arising from opting for a large project instead of one smaller in size. … [Read more...]
Independent Project
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Independent Project Projects whose acceptance or dismissal is not dependent on the acceptance or rejection of others. … [Read more...]
Index
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Index Statistical evaluation of changes in the economy or market. Represents a specific section of markets through an imaginary portfolio. Every index follows a unique calculation methodology and generally shows changes as a comparison from a original value. … [Read more...]
Index and Option Market (IOM)
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Index and Option Market (IOM) Related to Chicago Mercantile Exchange (CME). A CME division set up in 1982 for trading in stock index options and products. … [Read more...]
Index Arbitrage
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Index Arbitrage Investment or trading strategy that uses divergences or differences between actual and expected futures prices to make gains. … [Read more...]
Index Model
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Index Model A tool to assess common or systemic risks by creating a model of returns expected from a stock using a market index like the S&P 500. … [Read more...]
Index Option
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Index Option Put or call options based on stock market indices. … [Read more...]
