| Term | Definition |
|---|---|
| Iceberg Order | A large order that is broken into smaller orders to avoid detection |
| Ichimoku Cloud | A technical indicator |
| Ichimoku Kinko Hyo Indicator | Same as Ichimoku Cloud |
| ICON Cryptocurrency (ICX) | A cryptocurrency |
| Ideation | The process of forming ideas |
| Identifiable Asset | An asset that can be specifically identified |
| Identity Theft | The theft of personal information |
| Idiosyncratic Risk | Risk that is specific to a particular asset |
| Idle Time | Time during which a resource is not in use |
| Illiquid | Not easily converted to cash |
| Immediate Family | Close relatives |
| Immediate Or Cancel Order (IOC) | An order that must be executed immediately or canceled |
| Immediate Payment Annuity | An annuity that begins paying out immediately |
| Immunization | A strategy to protect a portfolio from interest rate risk |
| Impact Investing | Investing with the intention of generating social and environmental impact as well as financial returns |
| Impaired Asset | An asset whose value has declined |
| Impaired Credit | A poor credit history |
| Impairment | A reduction in the value of an asset |
| Impeachment | The process of removing a public official from office |
| Imperfect Competition | A market structure where there are few sellers or buyers |
| Imperfect Market | A market where prices do not fully reflect all available information |
| Implicit Cost | An opportunity cost |
| Implied Authority | Authority that is not explicitly stated |
| Implied Contract | A contract that is not explicitly stated but is understood |
| Implied Rate | A rate that is not explicitly stated but can be calculated |
| Implied Volatility (IV) | The volatility of an asset implied by option prices |
| Import | To bring goods or services into a country |
| Import Duty | A tax on imported goods |
| Import Substitution Industrialization | A development strategy that focuses on producing goods domestically |
| Impression | A view of an advertisement |
| Imprest | A petty cash fund |
| Impulse Wave Pattern | A chart pattern |
| Imputed Value | A value that is estimated |
| Imputed Interest | Interest that is not explicitly charged |
| In-App Purchasing | Buying goods or services within an app |
| In Escrow | Held by a third party |
| In-House | Within the company |
| In-House Financing | Financing provided by the seller |
| In-Service Withdrawal | A withdrawal from a retirement account before retirement |
| In Specie | In kind |
| In the Money (ITM) | An option that has value |
| Incentive Stock Options (ISOs) | Stock options that are tax-advantaged |
| Incidence Rate | The number of new cases of a disease or condition |
| Incidental Expenses (IE) | Minor expenses |
| Income | Money received |
| Income Annuity | An annuity that pays out income |
| Income Approach | A method of valuing a business |
| Income Effect | The change in consumption due to a change in income |
| Income Elasticity of Demand | A measure of how responsive demand is to changes in income |
| Income from Operations (IFO) | Operating income |
| Income Fund | A mutual fund that invests in income-producing securities |
| Income in Respect of a Decedent (IRD) | Income earned before death but received after death |
| Income Inequality | The unequal distribution of income |
| Income Per Capita | Average income per person |
| Income Property | Property that generates income |
| Income Smoothing | The practice of reducing fluctuations in reported income |
| Income Statement | A financial statement that reports revenues and expenses |
| Income Stock | A stock that pays dividends |
| Income Tax | A tax on income |
| Income Tax Payable | Taxes owed |
| Incontestability Clause | A clause in an insurance policy that limits the insurer’s ability to deny a claim |
| Incorporation | The process of forming a corporation |
| Incoterms | International trade terms |
| Incremental Analysis | A type of cost-benefit analysis |
| Incremental Capital Output Ratio (ICOR) | A measure of the efficiency of investment |
| Incremental Cost of Capital | The cost of raising additional capital |
| Incremental Cash Flow | The change in cash flow resulting from a project |
| Incremental Cost | The change in cost resulting from producing one more unit |
| Incumbency Certificate | A document that certifies the officers of a company |
| Incumbent | A person who currently holds office |
| Incurred But Not Reported (IBNR) | Claims that have occurred but not yet been reported to an insurance company |
| Indemnity Insurance | Insurance that pays out the actual cost of a loss |
| Indenture | A legal agreement between a bond issuer and bondholders |
| Indentured Servitude | A type of forced labor |
| Independent Contractor | A person who works for themselves |
| Index | A statistical measure of market performance |
| Index Fund | A mutual fund that tracks an index |
| Index Futures | Futures contracts on an index |
| Index Investing | Investing in index funds |
| Index-Linked Bond | A bond whose return is linked to an index |
| Index Option | An option on an index |
| Indexation | The process of adjusting for inflation |
| Indexed Annuity | An annuity whose return is linked to an index |
| Indexing | Same as Indexation |
| Indian Rupee | The currency of India |
| Indication of Interest (IOI) | An expression of interest in buying a security |
| Indicative Net Asset Value (iNAV) | An estimate of a fund’s net asset value |
| Indicator | A statistic that provides information about the economy or market |
| Indifference Curve | A graph showing combinations of goods that give the same level of satisfaction |
| Indirect Loan | A loan made through a third party |
| Indirect Method | A method of calculating cash flow from operating activities |
| Indirect Quote | A currency quote that expresses the price of the domestic currency in terms of the foreign currency |
| Indirect Tax | A tax that is collected by an intermediary |
| Individual Retirement Account (IRA) | A tax-advantaged retirement savings account |
| Industrial Bank | A bank that specializes in lending to businesses |
| Industrial Goods Sector | Companies that produce goods used by other businesses |
| Industrial Organization | The study of how industries are structured |
| Industrial Production Index (IPI) | A measure of industrial output |
| Industrial Revenue Bonds | Bonds issued by municipalities to finance private projects |
| Industrial Revolution | A period of major technological advancements |
| Industrialization | The process of developing industries |
| Industry | A group of companies that produce similar goods or services |
| Industry Life Cycle | The stages of an industry’s development |
| Industry Life Cycle Analysis | The process of analyzing the stages of an industry’s development |
| Inefficient Market | A market where prices do not fully reflect all available information |
| Infant-Industry Theory | The theory that new industries should be protected from competition |
| Inferior Goods | Goods for which demand decreases as income increases |
| Inflation | A general increase in prices |
| Inflation Accounting | Accounting methods that adjust for inflation |
| Inflation-Adjusted Return | A return that has been adjusted for inflation |
| Inflation Hedge | An investment that protects against inflation |
| Inflation Swap | A swap used to hedge against inflation |
| Inflationary Gap | The difference between aggregate demand and potential GDP |
| Inflection Point | A point where a trend changes direction |
| Information Coefficient (IC) | A measure of a manager’s skill |
| Information Ratio | A measure of risk-adjusted return |
| Infrastructure | The basic physical systems of a country |
| Inherent Risk | Risk that cannot be eliminated |
| Inheritance | Property passed down to heirs |
| Inheritance Tax | A tax on inherited property |
| Inherited IRA | An IRA inherited from someone other than a spouse |
| Initial Coin Offering (ICO) | A way to raise capital for a cryptocurrency project |
| Initial Margin | The amount of margin required to open a position |
| Initial Public Offerings (IPOs) | The first sale of stock to the public |
| Inorganic Growth | Growth through mergers and acquisitions |
| Input-Output Analysis | A method of analyzing the relationships between industries |
| INSEAD | A business school |
| Inside Day | A candlestick pattern |
| Inside Indemnity | A type of insurance coverage |
| Inside Sales | Sales made by employees within a company |
| Insider | A person with access to non-public information |
| Insider Trading | Trading on non-public information |
| Insolvency | The inability to pay debts |
| Installment Debt | Debt that is repaid in installments |
| Institute for Supply Management (ISM) | A professional organization for supply management professionals |
| Institute of Management Accountants (IMA) | A professional organization for accountants |
| Institutional Brokers’ Estimate System (IBES) | A database of analyst estimates |
| Institutional Investor | A large investor such as a pension fund or mutual fund |
| Instrument | A financial asset or liability |
| Insufficient Funds | Not enough money in an account |
| Insurable Interest | A financial stake in something |
| Insurance | A contract that transfers risk |
| Insurance Claim | A request for payment from an insurance company |
| Term | Definition |
|---|---|
| Insurance Coverage | The extent of protection provided by an insurance policy |
| Insurance Premium | The payment made for insurance coverage |
| Insurance Underwriter | A person who assesses risk and determines insurance premiums |
| Insurtech | Technology used in the insurance industry |
| Intangible Asset | A non-physical asset |
| Intangible Personal Property | Personal property that is not physical |
| Intellectual Capital | The knowledge and skills of employees |
| Intentionally Defective Grantor Trust (IDGT) | A type of trust used for estate planning |
| Inter-American Development Bank (IDB) | A development bank for Latin America and the Caribbean |
| Interactive Media | Media that allows for user interaction |
| Interbank Deposits | Deposits made by banks in other banks |
| Interbank Market | The market for interbank loans |
| Interbank Network for Electronic Transfer (INET) | A network for electronic funds transfers between banks |
| Interbank Rate | The interest rate charged on interbank loans |
| Intercontinental Exchange (ICE) | A global exchange operator |
| Interest | The cost of borrowing money |
| Interest Coverage Ratio | A measure of a company’s ability to cover its interest expenses |
| Interest Expense | The cost of borrowing money |
| Interest-Only Mortgage | A mortgage where only interest is paid |
| Interest Rate | The cost of borrowing money |
| Interest Rate Call Option | An option to buy a bond at a certain interest rate |
| Interest Rate Collar | A combination of interest rate options |
| Interest Rate Derivative | A derivative contract whose value is based on interest rates |
| Interest Rate Differential (IRD) | The difference in interest rates between two currencies |
| Interest Rate Floor | A limit on how low an interest rate can go |
| Interest Rate Future | A futures contract on an interest rate |
| Interest Rate Options | Options on interest rates |
| Interest Rate Parity | A theory about the relationship between interest rates and exchange rates |
| Interest Rate Risk | The risk that interest rates will change |
| Interest Rate Sensitivity | The degree to which a security’s value changes in response to interest rate changes |
| Interest Rate Swap | An agreement to exchange interest rate payments |
| Interim Dividend | A dividend paid before the end of the fiscal year |
| Interim Statement | A financial statement that covers a period shorter than a full fiscal year |
| Intermediate Good | A good used to produce other goods |
| Internal Audit | An evaluation of a company’s internal controls |
| Internal Auditor (IA) | A person who conducts internal audits |
| Internal Controls | Processes designed to ensure the accuracy of financial information |
| Internal Growth Rate | The maximum rate a company can grow without external financing |
| Internal Rate of Return (IRR) | The discount rate that makes the net present value of a project equal to zero |
| Internal Revenue Code (IRC) | The U.S. tax law |
| Internal Revenue Service (IRS) | The U.S. tax authority |
| Internalization | The process of shifting production to a lower-cost country |
| International Accounting Standards (IAS) | Accounting standards issued by the IASB |
| International Bank Account Number (IBAN) | A number used to identify bank accounts internationally |
| International Bank of Reconstruction and Development (IBRD) | Part of the World Bank Group |
| International Banking Facility (IBF) | A financial institution that accepts deposits and makes loans in foreign currencies |
| International Bond | A bond issued in a currency different from the issuer’s home currency |
| International Chamber of Commerce (ICC) | A global business organization |
| International Depository Receipt (IDR) | A security that represents ownership in shares of a foreign company |
| International Finance | The study of financial transactions between countries |
| International Finance Corporation (IFC) | Part of the World Bank Group |
| International Financial Reporting Standards (IFRS) | Accounting standards used in many countries |
| International Fisher Effect (IFE) | A theory about the relationship between inflation and exchange rates |
| International Investing | Investing in foreign markets |
| International Labor Organization (ILO) | A United Nations agency that promotes labor rights |
| International Maritime Organization (IMO) | A United Nations agency that regulates shipping |
| International Monetary Fund (IMF) | An international organization that provides financial assistance to countries |
| International Monetary Market (IMM) | A futures exchange |
| International Organization for Standardization (ISO) | An organization that develops standards |
| International Securities Identification Number (ISIN) | A unique identifier for securities |
| International Swaps and Derivatives Association (ISDA) | A trade association for participants in the derivatives market |
| Internationalization | The process of increasing involvement in international markets |
| Internet of Things (IoT) | A network of interconnected devices |
| Interpersonal Skills | Skills related to interacting with people |
| Interpolated Yield Curve (I Curve) | A yield curve constructed from existing yield data points |
| Interpolation | Estimating values between known values |
| Intertemporal Choice | Decisions about consumption over time |
| Inter-Vivos Trust | A trust created during the grantor’s lifetime |
| Intestate | Dying without a will |
| Intraday Momentum Index (IMI) | A technical indicator |
| Intraday Trading | Trading that occurs within a single day |
| Intrapreneur | An employee who acts like an entrepreneur within a company |
| Intrapreneurship | The practice of intrapreneurs |
| Intrinsic Value | The value of an option if it were exercised immediately |
| Introducing Broker (IB) | A broker who introduces clients to a clearing broker |
| Inventory | Goods held for sale |
| Inventory Accounting | Methods used to value inventory |
| Inventory Financing | Financing used to purchase inventory |
| Inventory Management | The process of managing inventory levels |
| Inventory Turnover | A measure of how quickly inventory is sold |
| Inventory Write-Off | A reduction in the value of inventory |
| Inverse Correlation | A negative relationship between two variables |
| Inverse ETF | An ETF that is designed to move in the opposite direction of an index |
| Inverse Head And Shoulders | A bullish chart pattern |
| Inverted Yield Curve | A yield curve where short-term interest rates are higher than long-term interest rates |
| Invested Capital | The total amount of capital invested in a company |
| Investigational New Drug (IND) | An application to the FDA to test a new drug in humans |
| Investing | The process of putting money into something with the expectation of a return |
| Investment | An asset acquired with the goal of generating income or appreciation |
| Investment Advisers Act of 1940 | A U.S. law that regulates investment advisers |
| Investment Advisor | A professional who provides investment advice |
| Investment Advisory Representative (IAR) | A person who provides investment advice on behalf of an investment advisor |
| Investment Analysis | The process of evaluating investments |
| Investment Bank (IB) | A financial institution that helps companies raise capital |
| Investment Banker | A professional who works at an investment bank |
| Investment Banking | The business of helping companies raise capital |
| Investment Center | A business unit that is evaluated based on its return on investment |
| Investment Club | A group of people who pool their money to invest |
| Investment Company | A company that invests pooled funds |
| Investment Company Act of 1940 | A U.S. law that regulates investment companies |
| Investment Consultant | A professional who provides investment advice to institutions |
| Investment Fund | A pool of money invested in securities |
| Investment Grade | A credit rating indicating low risk |
| Investment Horizon | The length of time an investor plans to hold an investment |
| Investment Income | Income earned from investments |
| Investment Management | The process of managing investments |
| Investment Manager | A professional who manages investments |
| Investment Multiplier | The ratio of the change in GDP to the change in investment |
| Investment Objective | The goal of an investment |
| Investment Policy Statement (IPS) | A document that outlines an investor’s investment goals and strategies |
| Investment Product | A financial product used for investing |
| Investment Property | Property held for investment purposes |
| Investment Securities | Securities held for investment purposes |
| Investment Strategy | A plan for investing |
| Investment Thesis | A rationale for making an investment |
| Investment Vehicle | A tool used for investing |
| Investopedia | A financial website |
| Investor | A person who invests money |
| Investor Relations | The department responsible for communicating with investors |
| Invisible Hand | A metaphor for the self-regulating nature of markets |
| Invoice | A bill for goods or services |
| Invoice Financing | Financing secured by invoices |
| IOTA | A cryptocurrency |
| IOU | A written acknowledgement of debt |
| IRA Rollover | Moving money from one IRA to another |
| Iranian Rial (IRR) | The currency of Iran |
| Iron Butterfly | An options trading strategy |
| IRR Rule | A capital budgeting rule |
| Irrational Exuberance | A state of excessive optimism in the market |
| Irrevocable Beneficiary | A beneficiary who cannot be changed |
| Irrevocable Letter of Credit | A letter of credit that cannot be canceled |
| Irrevocable Trust | A trust that cannot be changed |
| Term | Definition |
|---|---|
| IRS Form 4868 | An application for automatic extension of time to file a U.S. individual income tax return |
| IRS Publication 15 | Circular E, Employer’s Tax Guide |
| IRS Publication 463 | Travel, Gift, and Car Expenses |
| IRS Publication 519 | U.S. Tax Guide for Aliens |
| IRS Publication 525 | Taxable and Nontaxable Income |
| IRS Publication 527 | Residential Rental Property (Including Vacation Homes) |
| IRS Publication 535 (Business Expenses) | Expenses for Operating Your Business |
| IRS Publication 550 | Investment Income and Expenses |
| IRS Publication 590 | Individual Retirement Arrangements (IRAs) |
| IRS Publication 590-B | Distributions from Individual Retirement Arrangements (IRAs) |
| IRS Publication1 970 | Tax Benefits for Education |
| IRS Publication 972 | Child Tax Credit and Credit for Other Dependents |
| IS-LM Model | A macroeconomic model |
| ISDA Master Agreement | A standardized contract for derivatives transactions |
| iShares | A brand of exchange-traded funds |
| Islamic Banking | Banking that complies with Islamic law |
| ISM Manufacturing Index | A measure of manufacturing activity |
| ISO Currency Code | A three-letter code for currencies |
| Isoquant Curve | A graph showing combinations of inputs that produce the same level of output |
| ISPs (Internet Service Providers) | Companies that provide internet access |
| Issue | A set of securities offered to the public |
| Issued Shares | Shares that have been issued by a company |
| Issuer | An entity that issues securities |
| Issuer Identification Numbers (IIN) | Numbers used to identify issuers of securities |
| Itemized Deduction | A deduction for specific expenses on a tax return |