Information Ratio A comparison of returns from a portfolio in excess of benchmark returns with the volatility of these returns. Evaluates the investment manager capability to outperform the benchmark. Higher IR shows that the manager is consistently outperforming the benchmark. … [Read more...]
Informational Efficiency
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Informational Efficiency The speed and accuracy with which prices reflect new information. … [Read more...]
Informationless Trades
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Informationless Trades Transactions that use only existing information and do not take into account any new or non-public information that has the potential to affect prices. … [Read more...]
Information-Motivated Trades
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Information-Motivated Trades Trades wherein the investor bases trading decisions on information not available to the public but which the investor believes will affect the price of the asset in immediate future. … [Read more...]
Initial Margin Requirement
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Initial Margin Requirement Related to securities purchase on margin. Denotes the share of the securities’ total market value that needs to be paid for in cash. The 1934 Security Exchange Act gives the Federal Reserve governors the responsibility of setting initial margin … [Read more...]
Initial Public Offering (IPO)
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Initial Public Offering (IPO) First sale of stock to the public by a company. Mostly stock of new, small companies that need outside capital from the public market. Investors are those who are willing to take high risk in return for large gains. Underwriting fees may be charged … [Read more...]
Initial Rate Period
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Initial Rate Period Phase during which "teaser" interest rate applies on a loan. It may vary according to loan type and be in force from one month to several years during the loan. … [Read more...]
Input-Output Tables
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Input-Output Tables Statistical tables giving an indication of the quantity of production of every other required by one industry to produce output equaling one dollar in value. … [Read more...]
Insider Information
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Insider Information Information relevant to a business that is not yet in public domain. Those with access to such information are legally bound to avoid making any trades using this information as the basis. … [Read more...]
Insider Trading
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Insider Trading Transactions carried out by major share holders, directors, senior management of a business. These persons have access to inside information about the firm that allows them to gain an advantage through the trading activities. … [Read more...]
Insiders
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Insiders -The individuals for whom inside information about a business is accessible. For example, senior management and directors. - An individual with an ownership of over 10% of voting shares in any business. … [Read more...]
Insolvency Risk
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Insolvency Risk Also called bankruptcy risk. The risk that a business may fail to find funds to fulfill all its debts. … [Read more...]
Insolvent
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Insolvent A business that fails to fulfill financial obligations. The total asset value is less than the total debt. … [Read more...]
Installment Debt
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Installment Debt Debt that is issued with a stipulation that borrower will make periodic repayments towards both principal and interest until they are completely repaid. … [Read more...]
Installment Sale
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Installment Sale An asset sale carried out in exchange for installment payments or a series of payments carried out in line with a schedule. … [Read more...]
Institutional Investors
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Institutional Investors Entities or organizations engaged in investing. Includes investment companies, insurance companies, pension funds, depository institutions, endowment funds and mutual funds. … [Read more...]
Institutionalization
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Institutionalization Concentration of institutional investors in the financial markets, creating a situation where they dominate the trading, overshadowing individual investors. Many examples of this phenomenon can be found in industrialized countries’ markets. … [Read more...]
Instruments
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Instruments Money market instruments, capital market instruments and other securities financial in nature. … [Read more...]
Insurance Principle
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Insurance Principle Principle stating that the average result or outcome of several independent tests of an experiment tends to approach the outcome expected from the exercise. … [Read more...]
Insurance Proceeds
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Insurance Proceeds The proceeds paid out as a result of a claim in an insurance policy. Sometimes payment is made to a care giver of the insured or in form of check payments to the insured. … [Read more...]
