| I |
| In the Black: Making money |
| In the Red: Losing money |
| Index: A stock market or
other securities index is a yardstick measure to
compare the price movement from moment to moment.
The most well known is the Dow Jones Industrial
Index, usually just called the Dow. |
| Inflation: When things cost
more than they used to. The declining value of
money due to prices going up. |
| Initial Public Offering (IPO):
When a corporation sells shares of stock to the
public for the first time. |
| Injunction: A court order
barring a defendant from doing something that
would harm the plaintiff. If the defendant ignores
the order, s/he may face fines, penalties, or
formal charges. |
| Installment Contract: A
purchase agreement that calls for regular set
payments that include both principal and interest. |
| Insurance Premium: The
regular payment for insurance. |
| Insured: The person covered
under an insurance policy. |
| Insurer: The insurance
company. |
| Interest: The price paid
for the use of money. A borrower pays interest, a
lender earns interest. A bank pays you interest on
your savings account because you are lending them
money. |
| Insider Trading: Illegal
trading of securities based on confidential
information from internal company sources. Since
such information would not be generally available
to the public, the trader has an unfair advantage. |
| Intangible Asset:
Non-physical company assets such as patents,
technical know-how, and trademarks. |
| Internal rate of return (IRR):
The discount rate at which an investment has a
net. present value of $0. |
| Inventory Turnover (turns):
The rate at which a firm's inventory is totally
depleted over a period of time, usually a year. A
company's average inventory divided by its annual
sales will give you its inventory turnover. |
| Investment Bank: A
brokerage firm that sells securities for
corporations and clients. They dispense merger
advice, employ analysts, and underwrite IPO's. |
| Institutional Investors:
Pension Funds, Universities (did you know that
they have endowment funds with billions of
dollars?), and cash-rich foundations and companies
that invest big dollars. |
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