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Investing Glossary - I

    Iceland Stock Exchange (ICEX)

    Iceland Stock Exchange (ICEX) - The Iceland Stock Exchange is the main trading exchange located in the nation of Iceland. It is where they list Icelandic exchange items such as bonds, stocks and mutual funds, which are traded by electronic means. They are listed with the exchange on either a Main List or some Alternates. The Alternate Lists are also used for over the counter trading and they are subject to strict regulations. This exchange was created in 1985 by a unified effort of various banks and firms. After 2002 the exchange has been also referred to by some under...

    Identified Shares

    Identified Shares - Identified shares are those that have been recognized, being either stocks or mutual funds, as sold on a given date for a specific price. This is significant when taxes are involved. In order minimize tax liability a given investor who is selling shares must identify what priced they were when bought in order to determine his or her cost basis. Should they have been purchased over a long periods at varied prices then it is necessary to resort to a plan such as a Constant Dollar Plan or Dividend Reinvestment Plan to determine the correct price. This...

    Impaired Capital

    Impaired Capital - Impaired Capital is the situation where the par value of a company stock exceeds the company's total capital. The capital of a bank impaired when the deficit in undivided profits account exceeds the surplus account so the sum of the paid-in-capital account, the surplus account, and the undivided profits account is less than the sum of the products of the number of shares outstanding in each class increased by the respective par value of the shares of each class. When capital of a bank is impaired, the superintendent of financial institutions shall give notice to the bank's...

    Inactive Post

    Inactive Post - Inactive Post is the trading post situated on the New York Stock Exchange (NYSE) floor where inactive stockholders conduct transactions. It is the space on the floor where lightly traded stocks trade. The Traded stocks distributed in shares of ten lots as opposed to shares of one hundred lots. Trading post on the floor of the NYSE where inactive security trade. An inactive post where traded securities trade through a stockbroker. These securities trade in batches for the expediency of the stock buyer and the stock trader. Stockholders bide their time in search of the right time...

    Incentive Fee

    Incentive Fee? - Fees are often paid as motivation to hedge fund general partners. On a less often basis such fees may be paid to a mutual fund manager. How much compensation is received will be based on an evaluation of the person?s performance. This will generally rely upon something associated with the benchmark index. Although this type of compensation could apply to any professional manager of financial areas, it is most often relevant to individuals that actually manage funds. There is debate over whether such incentives might inspire more risk on the part of managers, but it hasn?t deterred...

    Incestuous Share Dealing

    Incestuous Share Dealing - Incestuous Share Dealing is the trading of shares of stock certificates between two, or three companies and corporations in order to facilitate and create a tax benefit for the companies involved. It is the trading of shares of stock certificates between two, or three companies to create other financial benefits. This falls into a shady category in the business finance. This may, or may not be financially legal. This is dependent upon the nature of the business dealings. This is dependent upon the specific objectives intended. This is a stock trade for the benefit of the...

    Income Deposit Security (IDS)

    Income Deposit Security (IDS) - Income Deposit Security (IDS) is a security that combines common stock certificates and the notes of the common stock certificate issuer to provide regular income payments to the holder of the security. The holder of the stock certificates income deposit security receives dividends from the common stock certificates, and fixed income from the debt instrument in the IDS. These stock certificate securities trade on the stock exchange and can e purchased by any type of investor. The companies and corporations use this form of security for the stability and the maturity of the business,...

    Income Dividend

    Income Dividend? - The income due a stockholder from a mutual fund that must be dispersed and paid out according to the law. This income dividend, which may also include interest or other forms of income has to be given to the appropriate investors in accordance with all prevailing regulations. Investors have the discretion to take this money in cash or to elect to reinvest it back into more shares of the fund. All such income is considered taxable in the year it was received. Unless the fund is held in some tax deferred account such as a Keough plan...

    Income Fund

    Income Fund - This is a form of mutual fund that is tailored to focus on current income, either by means of monthly or quarterly types of compensation. That is opposed to those that emphasize benefits of capital appreciation. Among the types of investments this can include are municipal, preferred stocks, government and dividend paying stocks. Income funds do not provide fixed shared prices. Thus their value tends to follow the rises and declines in the interest rates. In addition, high risk funds from either bank loans funds or high yield bonds are among those who concentrate mainly on income...

    Income Risk

    Income Risk - It is when a person is receiving money on a consent basis from a fund and fluctuated from a changing interest rates or stock market prices. The risk about these types of funds in a steam income will decrease in the response to a drop in the interest rates, which lower the amounts in the fund. The most common risk in these funds is placing them in to a short-term income fund strategies or the money market, rather than the option of the longer-term strategies and also when you lock in your interest rate is the safer...

    Income Shares

    Income Shares - It is a class of a capital stock that may be offered by a dual-purpose fund. The other classes of these shares are called capital shares. When an investor or a company may own an income share, receive dividends from the investment, share or fund of the entire performance. Whenever there is room or little room capital appreciation in these shares may generate fund that the investor can collect. Those who may invest in the class of the stock are typically looking for the steady income in a form of the dividend instead of the capital gains....

    Income Statement

    Definition: A detailed financial statement that shows all of the incomes and expenses of a company. TeenAnalyst Advice: The income statement gives investors a sense of the breakdown for the most recent quarter or year for a company.  It details the amount of money the company made and where the money came from. The income...

    Income Stock

    Income Stock - Income Stock is an equity security that pays a regular, steady, dividend, and offers a high yield that will generate majority of overall returns. While there is no specific breakpoint for classification, income stocks have lower levels of volatility than the overall stock market. This offers higher-than-market dividend yields. Income stocks may have future limited growth options, thereby requiring a lower level of ongoing capital investment. The excess cash flow from profits is to give back to the investors on a regular basis. Income stocks can come from any industry, but most commonly found as companies operating...

    Income Stream

    Income Stream – Income stream is the change over time in the amount of cash created and/or held by a company.  The most common usage of this phrase comes from investment profits when an individual can visualize or determine how much cash is coming in from the products that they invested in over a regular interval of time.  The quickest way to gain a sense of a company’s income stream is to examine the bottom line on their cash flow statement to make sure that it is positive and hence that the company is profitable....

    Income Trust

    Income Trust - It is a type of investment trust, which may have holds in the income-producing assets or replacing it in investment. The income that is produced may be passed on to investors or corporations or the unit holder. Example are of the income trusts are the real estate investment trusts (REIT) and the unit investment trust (UIT). There is also a Canadian income trust, which in this type of trust pays out all earning before taxes but it works more off of the securities exchange in public trading. Corporations and or companies may receive a special corporate tax...

    Increasing returns to scale

    Increasing returns to scale – An increased return to scale occurs when production is greater than the past due well-organized operational practices, and when the cost per element of assembly is reduced.  Increasing returns to scale is otherwise known as economies of scale or decreasing costs.  This term is best explained through a quick example. Say a production line increases the amount of parts it uses (oftentimes referred to as “inputs”) by 4 times.  An increased return to scale would occur when more than four times of the original products are created, also known as “outputs” from these parts. ...

    Incremental Cost

    Incremental Cost – An incremental cost is often referred to as marginal cost.  It is the difference created in total cost of production reflected on a company’s balance sheet when the amount of output is increased by one unit.  Additional costs needed to add on another unit of production are also included in incremental cost.  For example, if a bottling factory wants to add more bottles to its assembly line and they need to acquire another building in the process, the incremental cost for the additional bottles includes the new building.  Other common elements found within incremental cost include equipment...

    Incubated Fund

    Incubated Fund - It is a type of mutual fund that is managed first as a private fund and only later, after they are successful period lasting from four to as many as twenty years, it is opened to the public for a investment option. A few select investors initially finance such funds. They usually management companies? owners and or it are the employees. They are tested with different portfolio combinations. In some cases, the Securities and Exchange Commission (SEC) allows the funds performance record in its incubation period to be used in marketing to fund the public interest....

    Independent Contractor

    Independent Contractor – An independent contractor is an individual or company that, under a specific arrangement, will supply products or services to another individual or business.  An independent contractor is not bound to a company or person like a regular employee.  They are usually considered freelance and will maintain control over the number of hours they put in, what services they provide and how often they will work for a company.  Independent contractors can work for many different individuals or businesses and the relationship between contractors and employers is generally terminated once the job is complete. ...

    Independent Research

    Definition: Independent research is created by investment research firms with no conflicting interests.  These are firms such as Morningstar and Standard & Poor's.Advice: As part of the Global Research Settlement in recent years, investment banks were found to have too many conflicts of interests, resulting in providing investors with poor research.  Consequently, independent research providers have been hired to conduct stock research.  This information is then provided to investors who want access to it.  ...

    Index Fund

    Definition: A mutual fund that invests in stocks that make up indexes, such as the Dow or S&P 500. TeenAnalyst Advice: Index funds are great because they don't have to worry about underperforming the market.  They also have considerably lower expense ratios than other mutual funds. ...

    Index Fund Shares

    Index fund shares - It is the shared index fund that issues multiple ownership to the fund or security. Index fund shares are represent ownership in either fund or a in unit investment fund that hold the portfolios of the common stock that is closely tracked the performance and dividend yield of a specific indices broad market, sector , and or the international markets. The investors in the ownership can buy sell an entire portfolio with all agreeing on the stock embedding in single security in the same manner they would buy any shares of the common stock. As long...

    Index Investing

    Index investing - It is when an investor and or a company purchases a shares from already open index fund. This type of investing in these index investing requires very little research because it is an open investment in which all the securities in the index are tradable. This is very different from other types of investing for incentives in mutual fund because of a mutual fund has to be researched first and it can comprised of many different shocks from different indexes. This is opposed to an index investing which may deal with multiple stocks trading on the same...

    Index Shares

    Index Shares - Index Shares is index based investment product that the investor can buy and sell shares of stock certificates of an entire portfolio of stock investments in a single security. These unique financial products combine the opportunities of indexing with the advantage of stock security trading. The index shares have based on a broad market sector and international indexes. This gives the investor a wide range of investment opportunities. The investor has the ability to establish long-term investments in the market place performance of the leading companies in the leading industries in the United States. A method used...

    Indirect Cost

    Indirect Cost – Indirect costs are the expenses that are associated with the manufacturing of a certain product or outcome but are not directly related, such as raw materials or production labor.  Indirect costs can include expenses such as: building and equipment maintenance, security, some technology, advertising, and supervision, among other factors.  Calculating the indirect cost for a product can be challenging, because these costs may be shared with other departments or products.  Yet when a cost figure is established for a particular item, it remains constant and can be used to determine profitability....

    Industrial Espionage

    Industrial Espionage – Industrial espionage is considered the gathering of information from a corporation for personal gain, with no concern for national security.  Industrial espionage, (also known as corporate espionage) can usually be traced to a theft by an insider.  The stealing of trade secrets or technological information for resale to another company or country would be a typical example of this type of espionage.  Spying, bribery, and blackmail are some of tactics that are used to obtain this valuable information.  This information is usually dangerous and detrimental to the security of a country or company....

    Industrial Goods

    Industrial Goods – Industrial goods are materials and or supplies that are purchased and utilized by other businesses or industries.  Generally industrial goods are raw materials for use in the production of parts and component parts such as plastics and steel for the automotive business for instance.  However, equipment, machinery, and specialized tools and instruments used in the making of parts can also be classified as industrial goods.  Other examples are cotton for the clothing industry, vinyl and wood for the housing industry, and miscellaneous chemicals for fertilizers and even the pharmaceutical industry....

    Industry

    Industry Term category: General Business In 10 words or less:  A category classification based on the company's line of business. ...

    In Escrow

    In Escrow - An escrow is a trust provided by a third party. When funds are placed in trust under the supervisor of this third party it is referred to as the funds being ?in escrow.? This form of trust provides both the seller and buyer the use of someone with no vested interest in the transaction to ensure it transpires and all funds are properly transferred. The third party will also handle all documentation required for completion of the transfer in funds. Escrows serve a wide variety of purposes with regards to sales of anything requiring completion of documentation...

    Inflation

    Definition: This is the idea that things will cost more ten years from now than they do today.  When prices are rising, we call it inflation. TeenAnalyst Advice: Inflation is bad for investors because it eats away at their rate of return.  It's also a critical reason why people should invest their money. There's a...

    Informationless Trade

    Informationless Trade - Informationless Trade is the result of either a reallocation of wealth or the implementation of a strategy investment that only acts on existing information. A large block of stock, sold by an investor, not because they have information that leads them to think the stock will fall in value, but because they might need the cash for some other investment. Trades made without regard to information available on the securities traded. Informationless trades occur primarily when an investor wishes to change the investment goals or simply implement them differently. A security trade aimed at achieving an investment...

    Information Ratio

    Information ratio - It is an investment terminology, which means the ratio of expected return to risk. This ration is measured using standard deviation. Usually this may be a statistical technique is used to measure a manger performance against a benchmark. The ration will look like this the information ratio, which is equal top line states the retune of the portfolio minus the return of the index or the benchmark the bottom line number is the tracking error. This ratio will help in determining if the investment manger beat the benchmark bit a littlie or a lot in a few...

    In Kind

    In Kind – “In kind” refers to a non-cash form of compensation utilized by an individual or a company.  A business, especially within the retail sector, will dole out discounts to its employees as payment instead of additional bonus or overtime income.  Another example occurs when wholesale mortgage lenders set up rebate prices for their brokers as a form of concession.  Outside of the business realm, gifts in kind are often handed out to charities or non-profit organizations.  Such examples include providing workforce for disaster relief in devastated areas such as New Orleans after Hurricane Katrina....

    Insider Buying

    Insider Buying - Insider buying is the buying of a company or corporation's common stock certificates by an individual director, or executive. It is the buying of a company or corporation's common stock certificates by other company employees. Generally an indication that those individuals involved believe that the company stock or corporation stock is undervalued. This is a practice that borders on illegal practices if the insider information is the reason for the purchasing of the stock certificates. It is the opposite of the insider selling practice. It is an officer of a company with access to private information about...

    Insider Report

    Insider Report - Insider Report is a financial report of all the transactions in the stock portfolio of a company and or corporation. The report includes financial information collected and saved on stock certificates bought, traded, and sold by the corporate executives. It incorporates the stock certificates shares of a company, or corporation made by the officers of the corporation. It includes the directors and any other individuals in the company, or corporation holding ten percent or more of the company, or corporation's stock certificates. Monthly information submitted to the Security and Exchange Commission and examined. This allows...

    Insider Selling

    Insider Selling - Insider selling typically means the running for the hills. It could simply mean company, or corporate executives borrowed too much. Many investors sell more held stock certificates because they are forced to, rather than because these investors want to. The corporate stock certificate investor's insider sales are typically a useful way to measure the future of the company or corporation. Insider selling has jumped to its highest level since directors and senior officers at company, and corporations sell millions of dollars in stock certificate equity. This is an imbalance, and one that would traditionally signal during the...

    Institution

    Definition: An institution is a large organization--such as a college endowment, pension fund, insurance company, etc--that invests in securities on its own behalf or the behalf of its members/investors. Advice: Institutional investors have considerable pull in the financial markets.  Because they invest millions or even billions of dollars, they have a greater ability to affect change at companies.  Many activist hedge funds have even been successful in getting seats on the board of directors of various companies.  ...

    Institutional Brokers' Investment System

    Institutional Brokers' Investment System - Institutional Brokers' Investment System is an institutionally run financial service which collects information on stock certificates currently bought, traded, and sold on the stock exchange through Security and Exchange Commission. It is the collection of pertinent, vital information to file into a commissioned report. This report is a collection of all stock certificates and contains valuable trading information over time. This report contains the earnings estimates achieved by company and corporate staff during the course of the year. The financial services conducted by stock investor analysts, for stock investors. It is the gathering all...

    Institutional Fund

    Institutional fund - It is when a mutual fund that targets a pension funds, endowments and other high net worth entities and individuals. In situational fund, usually have lower operating rates and a higher minimum investment that retail funds. Often their main investments are to reduce risk, so they invest in hundreds of different securities, which make them among the most diversified funds available. They also do not tend to trade securities very often, so they are able to keep operating costs to a minimum. Therefore, in the past investors normally needed at least 1 million in order to invest...

    Institutional Shares

    Institutional shares - It is a type of mutual fund shares of a class available to institutional investors. In this class mutual funds that is either on a load or no load basis and no 12b-1fees. With a sizeable minimum investment usually around $500,000 or more these fund will typically waive any front-end sales changes on these types of a shares. An investor my buy a big bock of mutual fund shares expect and very commonly receive a break on the commission that is charged. This investor of these large investments requires receiving these breaks as many individual investors typically...

    Intellectual Property

    Intellectual Property – Intellectual property refers to the ownership of “intangibles” such as:  brand names, trade secrets, business ideas, company knowledge, formulas, recipes, software, designs, music, literature, symbols, phrases and other “assets” of a company that cannot be otherwise defined. Intellectual property is considered highly valuable to companies, even though a monetary value could be difficult to formulate.  A value can be attributed and placed on a company’s accounting balance sheet.  Many companies will legally protect these possessions by requiring employee non-disclosure contracts, filing for patents, and applying for copyrights on these properties....

    Interest-On-Interest Component

    Interest-On-Interest Component - Interest-On-Interest Component is the portion of a stock certificate security's total returns that result from the stockholder reinvesting of the income generated by that stock certificate security. In the case of bonds, it refers to the stockholders reinvestment of the coupon interest received until the original bond matures. In the case of amortizing stock certificate securities, such as mortgage-backed securities, it comprises of the interest plus the period repayment of the principle before the maturity. During periods of high interest rates, this one component is for long-term bonds can be seventy percent to eighty percent of the...

    Interest Sensitive Stock

    Interest-Sensitive Stock - Interest-Sensitive Stock is a stock certificate whose price tends to move in the opposite direction from that of interest rates. Interest-sensitive stock certificates include nearly all preferred stock certificates and the common stock certificates of industries such as electric utilities and savings and loans. A common stock certificate may be interest-sensitive either, because its dividend is a fixed, as with an electric utility, or because the firm raises a large portion of its corporate funds through borrowing, as with a savings and loan or a commercial bank institution. A stock that is particularly sensitive to changes in...

    Interest Coverage Ratio

    Interest Coverage Ratio - Interest Coverage Ratio is a ratio used to determine the ease a company can pay interest on an outstanding debt. The interest coverage ratio calculated by dividing company's earnings before the interest and the taxes (EBIT) of one period by the company's interest expenses of the same period. The lower ratio, the more the company burdened by debt expense. When a company's interest coverage ratio is 1.5 or in total lower. It is the ability to meet interest expenses and may be questionable. Interest ratio coverage below 1.0 indicates the company is not generating sufficient revenues...

    Interest Rate

    Definition: The amount of money in percent that a borrower pays to borrow money.  For example, if a $100,000 loan has a 5% interest rate, the borrower will have to pay $5,000 each year until the money is paid back. TeenAnalyst Advice: The goal for investors is to earn the highest interest rate possible ...

    Interlocking Directorates

    Interlocking Directorates – An interlocking directorate is a company board member that also sits on the board on at least one other company, if not more than one.  This is a perfectly legal position, although it can be illegal if one of the other businesses is a competitor.  This scenario sets the stage for a “conflict of interest”, or possibly the exchange of intercompany information that could be challenged as “insider trading” and illegal in a court of law.  Sitting on the board of two similar companies, could hinder fair competition.  Usually a clause in the member’s contract addresses this...

    Intermarket Surveillance Information System (ISIS)

    Intermarket Surveillance Information System (ISIS) - Intermarket Surveillance Information System (ISIS) is a system for storing options and equity trade information from the eight national securities exchanges, including the New York Stock Exchange and more important National Association of Securities Dealers. Included, this system is information on trades, the places where they occurred, the firms involved, and the brokers making the trades. A data share tool that collects information on equity and options transactions. It allows regulators and the exchange officials to monitor the market and protect the investing public. The information provided is online to give surveillance personnel complete...

    Internal Growth Rate

    Internal Growth Rate – The Internal growth rate of a company is an accounting formula that reveals the maximum growth a particular company can achieve without any outside financial support.  The equation used to determine the internal growth rate is:  retained earnings divided by the company’s total assets.  The retained earnings are a company’s net profits after shareholder dividends are disbursed.  Clearly, a company with a high IGR, would be a good investment for stock market speculators.  A company with little or no debt should get a high IGR, and lots of interest from investors....

    International Fund

    International fund - It is a mutual fund that targets a investor that invest in stocks and bonds out side of the United States of America. International funds usually have lower operating costs and a higher minimum investment than retail funds often their main objective is to reduce risk so they invest in hundreds of different securities, which makes them among the most diversified funds available. They do not tend to trade in securities very often as they are able to keep operating costs to a minimum. Therefore, in the past many investors typically needed a least one million in...

    International Market Index

    International Market Index - International Market Index is an index that listed on the American Stock Exchange and, that works to the tracking performance of fifty of the American Depository Receipts traded daily on the American Stock Exchange (AMEX), the New York Stock Exchange (NYSE), and the NASDAQ. The index is listed on the American Stock Exchange (AMEX), a capitalization-weighted index of fifty major foreign stocks certificates that originate from countries in and around Europe and in and around the Pacific Rim whose American Depositary Receipts (ADR's) are traded on the American Stock Exchange (AMEX), the New York Stock Exchange...

    International Securities Identification Number

    International Securities Identification Number - International Securities Identification Number is a recognized code that uniquely identifies a specific stock securities issue. The organization that allocates International Securities Identification Numbers (ISIN's) in any particular country is the country's respective National Numbering Agency (NNA). All internationally traded stock certificate security issuers urged to use this numbering scheme, which is now the accepted standard by virtually all countries. Canada and the United States primarily use a similar scheme known as a CUSIP number. An international code which identifies a security issued. Each country has a national numbering agency which assigns to stocks the...

    Interstate Commerce

    Interstate Commerce – Interstate commerce is the transportation, purchase, and selling of goods and services between different states.  Commercial transactions between states are regulated by the U.S. Congress.  There have been many cases before the U.S. Supreme Court challenging the scope and breadth of the Commerce Act.  It has been questioned on race, racketeering, and other issues.  However, in most cases, the Justices of the Supreme Court abided by the decisions of the legislative branch, even if they had differing opinions. If there was a rational reason for any Congress regulated commerce activities, these were supported by the Judges....

    In the Black

    In the Black – “In the Black” is a blanket term for any business venture that is considered to be profitable or successful.  One of the most prevalent times this term is used is during Black Friday.  The Friday after Thanksgiving is considered to be the beginning of the holiday shopping season and because of this, retailers are expect to finally be able to be turning a profit or be “in the black”.  This term has said to have originated from the accounting practice of marking positive profits in black ink in a ledger. ...

    In the Money

    Definition: Options are said to be "in the money" when they have exercisable value.  This occurs when the current price of a stock is above its strike price (call option) or below the strike price (put option).Advice: Options can still have value if they're out of the money but they can't be exercised until they are in the money.  Ideally, if you buy a call option, you want the stock to rise and eventually become "in the money."  ...

    In the Red

    In the Red – “In the Red” is the opposite of “In the Black”.  This term refers to any business venture that is considered to be a loss or not profitable.  A company often states that they are in the red when their revenue is exceeded by their costs, thereby showing that they are losing money.  In the accounting profession, any amount that is negative or any debt or liability listed on the accounting balance sheet used to be denoted in red ink, hence the origin of this now mainstream phrase....

    Intrastate Commerce

    Intrastate Commerce – Intrastate commerce is the transportation, purchase, and selling of goods and service within one state.  With the economy in a slump in 2009, many states are offering incentives to companies and consumers who buy and sell locally.  Community service announcements and billboards are very prevalent in depressed areas of the country.  These advertisements heavily promote buying, selling, hiring, and using services and products within your own community or state.  States benefit economically when dollars stay within their own borders, by collecting sales taxes, business taxes, payroll taxes among other fees, taxes and licensing....

    Intrinsic Value

    Definition: This is a hypothetical "real value" of a company that's calculated by considering the value of a company's earnings today. TeenAnalyst Advice: People who calculate the intrinsic value of a company consider it to be the "real value" of a company.  This is the idea that the price you see is not the real value...

    Inventory Turnover

    Inventory Turnover – Inventory Turnover is an accounting and warehousing formula that determines whether stored product is being sold or delivered at industry rates.  Low turnover indicates problems with sales or buying issues.  High turnover is generally a very good sign, because storage and management costs are reduced.  If the high turnover is not within industry ranges, there could be other factors affecting turnover, such as theft.  The formula for inventory turnover is: the cost of goods sold divided by the average inventory.  Average inventory is the beginning inventory plus the ending inventory (each month) divided by two....

    Inventory turns

    Inventory turns - It is for a company that the ratio of annual sales to inventory or the equivalently or the fraction of the year that an average item remains in inventory. Low turnover is a sign of inefficiency, since inventory usually has a rate of return of zero. For a mutual fund, the number of times per year that a average dollar of assets is reinvested. The ration can be represent two different ways the first is the top line is the sale the bottom line is there inventory to equal the inventory turnover. The second way...

    Inverted Hammer

    Inverted Hammer - Inverted Hammer is a candlestick chart pattern that occurs when a stock certificate security had been declining on the stock market exchange in previous sessions. A stock certificate security is then temporarily traded at a higher lever throughout a given day session, but by the end of the day the stock market realized it could not support that particular stock certificate. It is the level of trading an inverted hammer and has it returned to a low level. This in turn then closes far below the expectations of the opening price at the opening bell of the...

    Inverted Saucer

    Inverted Saucer - An inverted saucer or oval shape referred to as a dome in the financial world. In the technical analysis, the financial stock markets it is a term used to describe the oval shape similar to a saucer. The inverted saucer is the analytical and sometimes technical version of the up and down ?U? shaped pattern formation that is noticeable on a technical chart of tracking stocks daily, monthly, and quarterly. It is a dome by some stock certificate investors. It seen when posted against other stocks. This is a marketable stock certificate traded, purchased, and sold through...

    Investment Adviser

    Investment adviser - It is the person or company that is employed to organize an investor?s mutual funds and securities. They also provide information on the investments made and advice on what investments to make next. An investment adviser can make recommendations for a return for a flat fee or a percentage of the assets managed also know as a commission. For mutual fund companies it may be the investor who has that day to day responsibility of the investing and monitoring the cash or the securities within the funds portfolio in order to achieve the funds objective. They are...

    Investment Banks

    Definition: Financial institutions that help corporations issue stocks and bonds in order to raise money.  Unlike regular banks, they do not accept deposits or make loans. TeenAnalyst Advice: Investment banks provide a number of services for their clients: mergers and acquisitions, underwriting, etc.  People who go into careers in investment banking are usually people looking to make a lot of money.Examples of investment banks: Merrill Lynch, Goldman Sachs, Morgan Stanley, etc.  ...

    Investment Company

    Investment Company - Investment Company is a company, corporation, business trust, partnership, or limited liability company that issues securities and is primarily engaged in the business of investing securities. An investment company invests the money received from investors on a collective basis, and each investor shares in the profits and losses in proportion to the investor's interest in the investment company. The performance of the investment company will be based on, but it will not be identical to, the performance of the securities and other assets that the investment company owns. The three types are mutual funds, closed-end funds and...

    Investment Company amendments act of 1970

    Investment Company amendments act of 1970 - It is the amendment to the Investment company act of 1940, which happen in 1970. It is to regulating the sale chargers and withdrawal penalties from a mutual fund. The act also set the maximum load fee that mutual fund can charge to an investor can determines how the fees may be set in the accumulation plans for the securities. That the established regulation of the 1940?s act that are concerning of the sales charges, fees and the withdrawal penalties. With this amendment to the act a new term the 12b-1 fee was...

    Investment Counsel

    Investment counsel - It is the person or company that is employed to organize a investors mutual funds and or their securities. They also provide information on the investments made and give advice on what investments to make next. An investment council can make recommendations for a return for a flat fee or a percentage of the assets managed also know as a commission. For mutual fund companies it may be the investor who has that day to day responsibility of the investing and monitoring the cash or the securities within the funds portfolio in order to achieve the funds...

    Investment Fund

    Investment fund - It is a firm, which invests the pooled funds of a retail investors for a fee. By aggregate the funds together of a large number of these small investors into a specific investment. An investment company gives individual investors access to a wider range of securities than the investors themselves would have been able to access. In addition, see to an individual investor are not hampered by high trading costs since they are investment company is able to gain economies of a scale in the operation. For example, they may be offered open-ended mutual funds, or a...

    Investment Letter

    Investment Letter - Investment Letter is a legal letter between the issuer of new securities and the buyer, private placement of new securities. This communication dispatch is to establish that the securities bought for a minimum time period and treated as an investment, not for resale. If no such letter exists, the security registered with the Securities and Exchange Commission. A letter from the buyer of a private placement starting that the securities are for investment purposes and not for resale within two years. An investment letter is supposed to assure the Security and Exchange Commission the issue is not...

    Investment Management Company

    Investment Management Company - It is a company, which sells and manages a portfolio of securities for an investor of company. An investment management company that is actively managed an investors assets and the equity in order to achieve the investor?s financial objectives. These types of companies are available to both private investor and institutional investors. Some may use aggressive growth strategies, while others may invest in passive index funds it is normally agreed a pond between the investor and the investment management company. The investors typically select companies that match their investment objectives. They are also called the asset...

    Investment Memorandum

    Investment Memorandum - Investment Memorandum is a letter that commits an individual to acquire a company's securities and describes the terms of the deal. An investment memorandum is pretty much like a business plan, only written. It explicitly has an eye towards securing investors, whereas a business plan then written without this purpose. In the investment cycle, signing an investment memo or the term sheet comes after a review of the business plan and an informal agreement that you will potentially have something to gain. After signed, you proceed with in depth due-diligence and prepare all of the legal documents...

    Investment Objective

    Investment Objective - it is when an investors information from is used by registered it in an investment advisors and other asset managers that aids in determining the optimal portfolio mix client. In the ways of adding more current income form an investment plan or a capital appreciation. An investment objective survey may come in the form of a questionnaire, where an investor will be asked different questions on there investment style. Some of there question could be current liquid and net worth, risk aversion, investing time horizon, income levels or expense levels, plans for leaving in a will or...

    Investment Policy

    Investment policy - it is a formal description of an investment philosophy that may be utilized for any given fund, retirement plan or other investments the investor may want. It is also a document that is drafted and states that a portfolio manager and the investor have agreed to the outlined terms and general rules that company may use. This statement provides a general investment goal and or the objectives that the investor has wish to have done in the lines of strategies that the manager should do to meet all the requests asked in the statements. Specific information on...

    Investment Security

    Investment Security - Investment Security is marketable securities held by a bank in its portfolio of balance sheet assets. Investment securities, along with bank loans are the principal source of bank earnings, and serve two key functions. It is the source of bank liquidity or funding to meet loan demand or customers needs for cash and as an additional source of earnings from the capital gains realized with portfolio securities sold. Eligible securities that a bank legally can hold as investments include U.S. Treasury securities, federal agency obligations, debt securities of state and local governments, stock in Federal Reserve banks...

    Investment Trust

    Investment Trust - Investment Trust is investor's money pooled together from the sale of a fixed number of shares a trust issues when it launches. The board will naturally delegate professional responsibility to the fund manager to invest in the stocks and shares of a wide range of companies, more than most people could practically invest in themselves. The investment trust does not have employees, only a board of directors comprising only non-executive directors. However in recent years this has started to change, with the emergence of private equity groups and commercial property trusts of which use investment trusts as...

    Investment Value

    Investment Value - Investment Value is buying a stock, or indeed a business, at less than its intrinsic value. This pioneering method of investment was by Benjamin Graham, the father of securities analysis, and has been modified and enhanced by such legendary investors with great knowledge. The stock took the position that value investment was the only real form of investment; anything else was mere speculation. The other investment theories such as the modern portfolio theory, mixing unrelated stocks in a portfolio gives less volatility than the average volatility of the stocks. The market price of a share reflects the...

    Initial Public Offering (IPO)

    Definition: When a company wants to go public, the IPO is the first opportunity that investors have to invest in the company.  Stocks typically rise considerably on the IPO day. TeenAnalyst Advice: Inflation is bad for investors because it eats away at their rate of return.  It's also a critical reason why people should invest their money.There's a cost to keeping your money in cash.  That cost is that it won't be able to buy as much in the future as it will today.  If inflation is 3.5% per year (the historical average), it means your money is losing 3.5% of...

    Irish Stock Exchange (ISE)

    Irish stock exchange - It is Irelands main stock exchange where the Irish equities, bonds, investment funds asset-backed securities, warrant and where all securitized bond are traded. The Irish stock exchange is a financial instrument that are bought and sold mainly thought an electronic platform called the International securities exchange Xetra. The same type of platform is used by the Deutsche Borse Group. The exchange first began trading in 1793 in Dublin Ireland, and from 1973 to 1995 it was a part of the International Stock Exchange of Great Britain it now run in its own country under Irelands financial...

    Island Reversal

    Island Reversal - Island reversal is a candlestick pattern that marks the short-term reversal of stock. There are two patterns the bullish reversal and the bearish reversal. The pattern can consist of any number of candlesticks, but must have at least three. The first of the candlestick patterns in the same direction as the previous trend. The example of what bullish reversal is. On the first bear market day it is slow. The sequel day gaps down lower at the beginning and stays lower. The price of the stock may continue below this gap for days while the stock decides...

    Issue Date

    Issue Date - Issue Date is the date which newly issued bond begins to accrue interest. The buyer of a bond in the primary market must pay the issuer interest accruing between the dated date and settlement date in addition to principal amount of bonds purchased. This additional interest returned to the buyer when the issuer makes the first interest payment. For example, a new bond issue with a dated date of July 1 and a settlement date of July 20 would require purchasers to pay nineteen days interest in addition to the face value of the bonds. It formally...

    Issued Stock

    Issued Stock - Issued stock established as a shareholder agreement, also known as buyout agreement, dealing with issues relating to stock ownership. The agreement will envelop the death or departure of shareholders, protection of proprietary information, transfer or sale of stock, and the method by which a shareholder or group of shareholders can buy out other shareholders. Determine the integer of shares of stock you will issue each owner. Laws in all fifty states generally specify a minimum number of shares that issued if you exceed that amount, you may pay higher fees to the state. Each shares value is...

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    Definition of the Day Black Tuesday

    Black Tuesday - Black Tuesday took place on October 29 in the year 1929 and was probably the most famous stock market crash ever to be remembered in stock market history. On this day, the stock market's stocks lost 13 percent of their value and...

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