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Super Finance Glossary

Over 10,000 financial glossary terms...

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Browsing by the letter "I"

Displaying next 340 results of 477
Intrastate Offering
Definition: A securities offering limited to just one state in the United States.
Intrinsic Value
Definition: The value of an option if it were to expire immediately with the underlying stock at its current price; the amount by which an option is in-the-money. For call options, this is the difference between the stock price, if that difference is a positive number, or zero otherwise. For put options it is the difference between the striking price and the stock price, if that difference is positive, and zero otherwise. See also: In-the-Money, Time Value Premium, Parity.
Intrinsic Value Of A Firm
Definition: The present value of a firm's expected future net cash flows discounted by the required rate of return.
Intrinsic Value Of An Option
Definition: The amount by which an option is in the money. An option that is not in the money has no intrinsic value.
Introducing Broker (or IB)
Definition: A person (other than a person registered as an Associated Person of a Futures Commission Merchant) who is engaged in soliciting or in accepting orders for the purchase or sale of any commodity for future delivery on an exchange who does not accept any money, securities, or property to margin, guarantee, or secure any trades or contracts that result therefrom.
Inventory
Definition: For companies: Raw materials, items available for sale or in the process of being made ready for sale. They can be individually valued by several different means, including cost or current market value, and collectively by FIFO (First in, first out), LIFO (Last in, first out) or other techniques. The lower value of alternatives is usually used to preclude overstating earnings and assets. For securities firms: Securities bought and held by a broker or dealer for resale.
Inventory Financing
Definition: Used in the context of factoring and general finance to refer to loans to consumer product producers that use inventory as collateral. See also: Inventory loan.
Inventory Loan
Definition: A secured short-term loan to purchase inventory. The three basic forms are a blanket inventory lien, a trust receipt, and field warehousing financing.
Inventory Turnover
Definition: A measure of how often the company sells and replaces its inventory. It is the ratio of annual cost of sales to the lastest inventory. One can also interpret the ratio as the time to which inventory is held. For example a ratio of 26 implies that investory is held, on average, for two weeks. It is best to use this ratio to compare companies within an industry (high turnover is a good sign) because there are huge differences in this ratio across industries.
Inverse Floater
Definition: A derivative instrument whose coupon rate is linked to the market rate of interest in an inverse relationship.
Inverse Floating-rate Note
Definition: A variable-rate security whose coupon rate increases as a benchmark interest rate declines.
Inverse Order
Definition: In the context of periodic repayment schedules, beginning from the end, expected maturity. Opposite of current order.
Inverted Market
Definition: A futures market in which the nearer months are selling at price premiums to the more-distant months. Related: Premium.
Inverted Scale
Definition: A serial bond offering whose bonds with earlier maturity dates have higher yields than bonds with later maturity dates.
Inverted Yield Curve
Definition: When short-term interest rates are higher than long-term rates. Antithesis of positive yield curve.
Investible Indices
Definition: Usually refers to the Standard and Poors/International Finance Corporation emerging market indices which are weighted by the amount of market capitalization that foreigners can obtain in each company. The IFCG (Global) index weights each stock by total capitalization. The IFCI (Investible) index weighs by investible capitalization.
Investment
Definition: The creation of more money through the use of capital.
Investment Adviser
Definition: A person or an organization that makes the day-to-day decisions regarding a portfolio's investments. Also called a portfolio manager.
Investment Advisers Act
Definition: Legislation passed in 1940 requiring financial advisers to register with the Securities and Exchange Commission. The measure was enacted to protect the public from fraud or misrepresentation by investment advisers.
Investment Advisory Service
Definition: A business that specializes in providing investment advice for a fee. All advisers of an advisory service must be registered with the Securities and Exchange Commission.
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