Glossary List I

Income scheme

Income scheme is the kind of investment vehicle which provides the investor with a specific monthly payment. These are most suited for senior citizens.

Income stocks

Income stocks are equity securities that offer regular pays and have steady increasing dividends. These also offer high yields that generate most of the returns.

Index

Index or the stock index is the measurement of value of one particular section of stock market.

Index funds

Index funds are the kind of mutual fund with portfolio that is constructed to match the components of the market index.

Index of industrial production (IIP)

Index of industrial production is the index that shows the growth rates in various groups of industry of the economy with in a period of time.

Indian depository Receipt (IDR)

Indian depository Receipt is the financial instrument that is denominated in INR and is denominated as depository receipt.

Individual financial advisors (IFA)

Individual financial advisors are professionals who manage the finances by providing an advice related to investments, savings, property planning, taxes or retirement.

Inflation

Inflation occurs when there is a broad increase in the prices. In simpler terms, inflation means that services or goods are valued as desirable when compared to money.

INR

International Organization for Standardization currency code for the Indian Rupee is INR and this is the currency of India.

Insider Trading

When the trading of a stock of a public company is traded by individuals with the access to ’s nonpublic information, it is called Insider Trading.

Insolvency

Insolvency occurs when an individual or a company is no longer in a position to meet the financial obligations with its lender. This can occur due to poor cash management or a downfall in the cash flow or due to increase in expenses.

Institutional investors

Institutional investors are individuals who pool in money for the purchase of property or securities or other kinds of investment assets.

Insurance

Insurance is the contract that is represented by a policy through which an entity or an individual receives financial reimbursement or protection against any losses that have occurred from the insurance company.

Interest rate

The Interest rate is the amount that gets charged as a percentage of the principal, by the lending company or a lender for the use of assets.

Interest rate futures

Interest rate futures are financial derivatives that have an interest bearing instruments as underlying assets.

Interest rate swap

This is a contract that is used to exchange fixed payments for the floating payments that are linked to interest rates. These are used to manage the exposure caused due to fluctuations in interest rates.

Interim Dividend

Interim Dividend is the dividend given to the shareholders which has been declared and has also been paid before the company determines the full year earnings.

Intermediaries

Intermediaries are entities that act as middlemen between parties when there is an occurrence of financial transaction. These can be commercial banks or investment banks.

International trade

International trade occurs when there is an exchange of capital or goods or even services across international territories. Such a trade represents the share of GDP in many countries.

Interval fund

Interval fund is a kind of investment firm that gives periodic offers to its shareholders to repurchase its own shares.

In-the-Money

As per In the Money, the strike price of the call options is lower than the market price of the underlying asset or the strike price of the put option is higher than the market price of the asset.

Intraday trading

Intraday Trading is also known as day trading which includes buying and selling of shares or other financial instruments on the same trading day. All the open positions are to be closed before the markets get closed for that day.

Intrinsic value

Intrinsic value is calculated for a company or an asset and is based on the underlying perception of the assets true value. This also takes into consideration all the aspects of business.

Investment

As per economics, investments include the purchase of goods which are not used or consumed today but are used in the future for the creation of wealth.

Investors

An investor is a person who commits his capital expecting the financial returns. The investors use the investments made to grow the money.

IOC

IOC of the Immediate Cancel Order is the order to sell or buy a security that has to be executed immediately and any such order portion that cannot get filled immediately gets cancelled.

IPO

An IPO is also called as Initial Public Offering that is the stock of the private company that is offered to public. These are issued by young companies that seek capital for expansion.