Index-Linked Certificate Of Deposit A CD available at fixed price, whose return is based on a specific index. FDIC insurance eliminates all risk with such CDs. … [Read more...]
Index Warrant
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Index Warrant A part of a security offering that encompasses a stock index option. This option is issued by a corporate entity or government agency and comes with a option clearing corporation guarantee. … [Read more...]
Indexed Bond
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Indexed Bond Bonds whose payments are dependent or related to an index. For example, a bond dependent on the CPI. … [Read more...]
Indexing
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Indexing Investment strategy that is passive rather than active and that involves investing in a portfolio of assets that track a stock index with respect to the total return performance. … [Read more...]
Indicated Dividend
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Indicated Dividend Total dividend amount that would be generated on one share of stock over a one year period succeeding the present time if every dividend matches the same amount as that most recently received. Usually this is represented in stock tables by the letter "e". … [Read more...]
Indicated Yield
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Indicated Yield Refer to dividend yield. Formula: Annual dividend divided by price of stock. Indicated yield depends on the latest quarterly rate multiplied by four. The result is shown as a percentage. … [Read more...]
Indicative Quote
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Indicative Quote Forex trading terminology. A currency quote that a market maker gives to traders that is not final. He is not obligated to trade at the price he indicates or the quantity mentioned in quote. … [Read more...]
Indifference Curve
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Indifference Curve Graphical representation of utility function. Here the horizontal axis evaluates risk while the vertical axis evaluates expected return. The curve links all asset portfolios having the same utilities according to and . … [Read more...]
Indirect Loan
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Indirect Loan Loan transferred from the originating dealer to a third party. The buyer of the indirect loans is the ‘holder in due course’ and he has claim over all future principal and interest payments. … [Read more...]
Indirect Quote
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Indirect Quote Used in forex terminology, denotes the quantity or number of foreign currency units that will be required to purchase a single United States dollar. … [Read more...]
Inductive Reasoning
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Inductive Reasoning The endeavor to make use of information regarding a given situation to arrive at a deduction. … [Read more...]
Industry
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Industry The classification denoting the business’s primary or main business activity. Usually the classification arises from the area wherein the largest portion of revenue comes in for the business. … [Read more...]
Industrialization
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Industrialization Transformation of a country from a primarily agricultural society into a manufacturing based one producing goods and services. In the process, manual labor is replaced by mechanical production equipment. … [Read more...]
Inflation
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Inflation Rate of increase of general level of the prices prevailing for goods and services. … [Read more...]
Inflation Risk
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Inflation Risk Also termed purchasing power risk. Denotes the risk arising from the fluctuations in the real return achieved by the investor that may turn negative after adjusting for inflation. … [Read more...]
Inflation Uncertainty
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Inflation Uncertainty The uncertainty in predicting future inflation rates. This uncertainty may be an influencing factor in determining the term structure of interest rates for various instruments. … [Read more...]
Inflation-Escalator Clause
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Inflation-Escalator Clause A stipulation in a contract making allowances for decreases or increases in inflation based on changes in the production costs, cost of living, and other parameters. … [Read more...]
Information Asymmetry
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Information Asymmetry A circumstance where information pertinent to investment is known only to some of the participants who will be affected. … [Read more...]
Information Circular
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Information Circular Documents presented to shareholders describing matters of importance that will be discussed during the annual meeting of shareholders. … [Read more...]
Information Coefficient (IC)
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Information Coefficient (IC) The relation between actual and projected stock returns, at times used to evaluate the contribution of a financial analyst. A perfect linear relation between the two returns is represented by an IC of 1.0 while an IC of 0.0 indicates that there is no … [Read more...]
