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Glossary of financial terms - Letter I

  • IAC

    Tags:  financial markets order types

    See  


  • IAM

    Tags:  characteristics interest rate instruments

    See  


  • IAS

    Tags:  accounting norms and standards

    See  


  • IASB

    Tags:  accounting organisations for standardisation

    See  


  • IBAN

    Tags:  banking system codes or standards

    See  


  • IBES

    Tags:  fundamental analysis repository or database valuation and pricing

    Country:   United States of America

    See  


  • IBOR

    Tags:  indices interest rate markets

    See  


  • IBRD

    Tags:  financial system organisations or institutions

    See  


  • iceberg order

    Tags:  market orders order types

    A large market order that is divided into, and fed to the market, in small quantities, usually by the use of an order management system.

     


  • ICMA

    Tags:  financial markets professional associations

    See  


  • IFRS

    Tags:  norms and standards regulation

    See  


  • IFS School of Finance

    Tags:  financial markets professional associations

    Former name of

    .

     


  • IIAC

    Tags:  financial system professional associations

    Country:   Canada

    See  


  • IMF

    Tags:  financial system organisations or institutions

    See  


  • IMM

    Tag:  money market

    See  


  • immediate and cancel (IAC)

    Tags:  market orders order types

    See  


  • immediate or cancel (IOC)

    Tags:  market orders order types

    An immediate or cancel order is an order that is is to be executed in whole or in part as soon as arrives on the market, otherwise the order (or the part that has not been filled) will be canceled.

     


  • implicit volatility

    Tags:  finance (general) financial markets

    The volatility calculated by inputting the premium, strike, asset price, maturity and interest rate(s) into an option pricing model. In other word’s the market’s perception of future volatility can be implied from current option prices.

     


  • implied repo rate

    Tags:  market transactions valuation and pricing

    Interest rate at which a security needs to be borrowable in a cash-and-carry arbitrage for the transaction to reach its point of profitability.

     


  • index amortizing swap (IAS)

    Tags:  financial instruments interest rate derivatives

    A swap in which the principal changes according to the change in a specific index.

     


  • Index and Option Market (IOM)

    Tags:  financial markets regulated markets

    The Index and Options Market is a division of the CME established in 1982 for stock index products and options.

     


  • index fund

    Tags:  asset management financial instruments

    An index fund is a mutual or exchange-traded fund the objective of which is to replicate the composition and performance of a reference index as closely as possible.

     


  • indication of interest (IOI)

    Tag:  security issuance

    Indication of interest describes a buyer's non-binding interest in buying a security, usually before it is available for purchase.

     


  • inflation-linked bond

    Tags:  bonds typology

    Bond whose cash flows are partially or entirely linked to an inflation index. This type of bond protects its holder against inflation risk and guarantees him a real interest rate as opposed to classic bonds which pay a nominal interest rate.

     


  • inflation premium

    Tags:  interest rate markets valuation and pricing

    See  


  • inflation risk premium

    Tags:  interest rate markets valuation and pricing

    The inflation risk premium is a component of the nominal interest which compensates an investor for the loss of value of his investment due to inflation during the duration of the investment.

     


  • initial margin

    Tags:  derivatives risk management

    When a market participant establishes a futures position, he is required to make a minimum initial margin deposit to assure the performance of his obligations.

     


  • initial public offering (IPO)

    Tags:  security issuance stock markets

    An initial public offering is an event in which shares of a company are sold to institutional investors, and usually also retail investors, for the first time to be thereafter quoted on a stock exchange.

     


  • Institutional Brokers' Estimate System (IBES)

    Tags:  fundamental analysis repository or database valuation and pricing

    Country:   United States of America

    Institutional Brokers' Estimate System (IBES) is a database in the United States that gathers and compiles the different estimates made by analysts on the future earnings for most publicly traded companies in the United States.

     


  • institutional investor

    Tags:  financial markets market participants

    The term institutional investor is used to designate all entities like asset managers, insurance companies, pension funds and others that invest in the financial and money markets in large volumes.

     


  • instrumental value

    Tags:  options valuation and pricing

    See  


  • intended payment date

    Tags:  characteristics market transactions

    The date on which a payment is meant to be paid to the holder of a security for which an income event is due to be paid.

     


  • Interbank Offered Rate (IBOR)

    Tags:  indices interest rate markets

    An interbank offered rate is the interest rate at which banks lend to and borrow from one another in interbank market for a given currency and term.

     


  • interest

    Tags:  concept time value of money

    Interest is the money a borrower pays for the privilege of using the money, or which a lender is paid for the service of providing the money.

     


  • interest at maturity (IAM)

    Tags:  characteristics interest rate instruments

    Interest at maturity means that an instrument pays all interest due for the entire lifetime at the instrument's maturity date.

     


  • interest rate curve

    Tags:  interest rate markets valuation and pricing

    An interest rate curve is a graph that plots interest rates of similar fixed-income instruments with differing maturities across time. The curve creates a visual representation of the term structure of interest rates.

     


  • interest rate derivative (IRD)

    Tags:  interest rate derivatives interest rate instruments

    An interest rate derivative is a derivative contract which is linked to one or more reference interest rates.

     


  • interest rate future

    Tags:  financial instruments interest rate derivatives

    Futures contracts traded on short term and long term interest rate instruments e.g. 3-month deposits or government bonds.

     


  • interest rate risk

    Tags:  concept risk management

    Interest rate risk is the risk of a financial loss caused by a change in market interest rates.

     


  • interest rate swap (IRS)

    Tags:  financial instruments interest rate derivatives

    An interest rate swap is a financial transaction in which two counterparties agree to exchange interest payments of different types on a given notional amount.

     


  • internal rate of return (IRR)

    Tags:  investments metric valuation and pricing

    The internal rate of return is a measure of the return generated by an investment. Mathematically, it is the rate at which all cash flows generated by an investment need to be discounted for their net present value to be 0.

     


  • international accounting standards (IAS)

    Tags:  accounting norms and standards

    The International Accounting Standards were the first international accounting standards. They were replaced in 2001 by the International Financial Reporting Standards (IFRS).

     


  • International Accounting Standards Board (IASB)

    Tags:  accounting organisations for standardisation organisations or institutions

    The International Accounting Standards Board (IASB) is an independent body responsible for developing the International Financial Reporting Standards (IFRS).

     


  • International Bank Account Number (IBAN)

    Tags:  banking system codes or standards

    Internationally agreed standard for identifying bank accounts with the purpose of facilitating the processing of cross-border transactions. It was originally adopted by the ECBS and later became an international standard, adopted by 69 countries (2016).

     


  • International Bank for Reconstruction and Development (IBRD)

    Tags:  financial system organisations or institutions

    The International Bank for Reconstruction and Development is a global development bank that offers loans, guarantees, risk management products, and advisory services to middle-income and creditworthy low-income countries.

     


  • International Capital Markets Association (ICMA)

    Tags:  financial markets professional associations

    The International Capital Market Association is a trade association for participants in the capital markets.

     


  • International Financial Reporting Standards (IFRS)

    Tags:  accounting norms and standards

    International Financial Reporting Standards are standards to provide a common global accounting language so that company accounts are understandable and comparable across international boundaries.

     


  • International Monetary Fund (IMF)

    Tags:  financial system supranational bodies

    The IMF's principal missions are to promote international monetary cooperation, watch over financial stability, facilitate international trade, help with employment levels and durable growth and bring down poverty. Its most important means of action is lending to countries which either don't have sufficient currency reserves or experience financial difficulties.

     


  • International Money Market (IMM)

    Tags:  financial markets regulated markets

    The IMM, or International Monetary Market, was established as a division of the CME many years ago. Hence the CME operates as a unified entity, but references to the IMM still persist.

     


  • International Securities Market Association (ISMA)

    Tags:  financial markets organisations or institutions

    The International Securities Market Association was a self-regulatory organisation for international securities markets that merged with the International Primary Market Association in 2005 to form the International Capital Market Association (ICMA).

     


  • International Security Identification Number (ISIN)

    Tags:  financial instruments instrument codes

    ISINs are 12-character alpha-numerical codes that uniquely identify securities, such as bonds, equities, commercial papers and warrants.

     


  • International Swaps and Derivatives Association (ISDA)

    Tags:  financial markets organisations or institutions professional associations

    The International Swaps and Derivatives Association is a trade organisation of participants in the market for OTC derivatives.

     


  • in the money

    Tags:  options valuation and pricing

    An option is said to be «in the money» when its intrinsic value is positive. For a call option, this means that its strike is lower than the price of the underlying asset. A put option is said to be «in the money» when its strike is higher than the price of the underlying asset.

     


  • intrinsic value

    Tags:  options valuation and pricing

    The intrinsic value of an option is the amount by which it is in the money. It is calculated by taking the difference between the strike price and the market price of the underlying asset.

     


  • inverse floater

    Tags:  interest rate instruments typology

    Inverse floaters are floating rate bonds whose coupon rate moves in the opposite direction from the reference rate.

     


  • investissement

    Tags:  concept investments

    Un investissement est l’engagement d’une certaine somme d’argent pour une période de temps en vue de la réception de paiements futurs qui récompenseront l’investisseur pour (a) l’indisponibilité des fonds durant ce temps, (b) le taux d’inflation anticipé et (c) l’incertitude que les paiements futurs se matérialiseront.

     


  • investment

    Tags:  concept investments

    An investment is the commitment of a certain amount of money for a period of time in order to generate future payments that will compensate the investor for (a) the time the funds are not available, (b) the anticipated rate of inflation, and (c) the uncertainty that the future payments will materialise.

     


  • investment banking

    Tags:  activities and occupations market participants

    Investment banking is a collective term designating a range of services related to securities and financial markets including for example the issuance of securities, financial advisory, trading and lending of securities including market making, brokerage, and research.

     


  • investment grade

    Tags:  bonds typology

    Bonds of a high level of credit quality. Specifically, a bond rated BBB or above by Standard & Poors and rated Baa or above by Moody’s.

     


  • Investment Industry Association of Canada (IIAC)

    Tags:  financial system professional associations

    The Investment Industry Association of Canada is a professional association in Canada whose objective is to advance the growth and development of the national investment industry.

     


  • invoice amount

    Tags:  derivatives risk management

    The amount paid by the buyer to the seller when a future is delivered.

     


  • IOC

    Tags:  financial markets order types

    See  


  • IOI

    Tags:  finance (general) security issuance

    See  


  • IOM

    Tags:  financial markets regulated markets

    See  


  • IPO

    Tags:  security issuance stock markets

    See  


  • IRR

    Tags:  investments valuation and pricing

    See  


  • IRR

    Tags:  interest rate markets pricing and analysis

    See  


  • IRS

    Tags:  financial instruments interest rate derivatives

    See  


  • ISDA

    Tags:  organisations or institutions professional associations

    See  


  • ISIN

    Tags:  financial instruments instrument codes

    See  


  • ISIN code

    Tags:  financial instruments instrument codes

    See  


  • ISMA

    Tags:  financial markets organisations or institutions

    See  


  • ITM

    Tags:  options valuation and pricing

    See  


  • IWF

    Tags:  financial system organisations or institutions

    See  


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