Inductive Reasoning The endeavor to make use of information regarding a given situation to arrive at a deduction. … [Read more...]
Industry
Filed Under: i by
Industry The classification denoting the business’s primary or main business activity. Usually the classification arises from the area wherein the largest portion of revenue comes in for the business. … [Read more...]
Industrialization
Filed Under: i by
Industrialization Transformation of a country from a primarily agricultural society into a manufacturing based one producing goods and services. In the process, manual labor is replaced by mechanical production equipment. … [Read more...]
Inflation
Filed Under: i by
Inflation Rate of increase of general level of the prices prevailing for goods and services. … [Read more...]
Inflation Risk
Filed Under: i by
Inflation Risk Also termed purchasing power risk. Denotes the risk arising from the fluctuations in the real return achieved by the investor that may turn negative after adjusting for inflation. … [Read more...]
Inflation Uncertainty
Filed Under: i by
Inflation Uncertainty The uncertainty in predicting future inflation rates. This uncertainty may be an influencing factor in determining the term structure of interest rates for various instruments. … [Read more...]
Inflation-Escalator Clause
Filed Under: i by
Inflation-Escalator Clause A stipulation in a contract making allowances for decreases or increases in inflation based on changes in the production costs, cost of living, and other parameters. … [Read more...]
Information Asymmetry
Filed Under: i by
Information Asymmetry A circumstance where information pertinent to investment is known only to some of the participants who will be affected. … [Read more...]
Information Circular
Filed Under: i by
Information Circular Documents presented to shareholders describing matters of importance that will be discussed during the annual meeting of shareholders. … [Read more...]
Information Coefficient (IC)
Filed Under: i by
Information Coefficient (IC) The relation between actual and projected stock returns, at times used to evaluate the contribution of a financial analyst. A perfect linear relation between the two returns is represented by an IC of 1.0 while an IC of 0.0 indicates that there is no … [Read more...]
Information Costs
Filed Under: i by
Information Costs Related to search costs. Costs incurred in transaction including the analysis and evaluation of the advantages of a financial asset as an investment. … [Read more...]
Information Services
Filed Under: i by
Information Services Information disseminating organizations that give necessary data pertaining to investment to help investors and companies. For example, information that helps monitor cash position for a business. … [Read more...]
Information-Content Effect
Filed Under: i by
Information-Content Effect An increase in the stock price that succeeds the dividend signal or other relevant information. … [Read more...]
Information Ratio
Filed Under: i by
Information Ratio A comparison of returns from a portfolio in excess of benchmark returns with the volatility of these returns. Evaluates the investment manager capability to outperform the benchmark. Higher IR shows that the manager is consistently outperforming the benchmark. … [Read more...]
Informational Efficiency
Filed Under: i by
Informational Efficiency The speed and accuracy with which prices reflect new information. … [Read more...]
Informationless Trades
Filed Under: i by
Informationless Trades Transactions that use only existing information and do not take into account any new or non-public information that has the potential to affect prices. … [Read more...]
Information-Motivated Trades
Filed Under: i by
Information-Motivated Trades Trades wherein the investor bases trading decisions on information not available to the public but which the investor believes will affect the price of the asset in immediate future. … [Read more...]
Initial Margin Requirement
Filed Under: i by
Initial Margin Requirement Related to securities purchase on margin. Denotes the share of the securities’ total market value that needs to be paid for in cash. The 1934 Security Exchange Act gives the Federal Reserve governors the responsibility of setting initial margin … [Read more...]
Initial Public Offering (IPO)
Filed Under: i by
Initial Public Offering (IPO) First sale of stock to the public by a company. Mostly stock of new, small companies that need outside capital from the public market. Investors are those who are willing to take high risk in return for large gains. Underwriting fees may be charged … [Read more...]
Initial Rate Period
Filed Under: i by
Initial Rate Period Phase during which "teaser" interest rate applies on a loan. It may vary according to loan type and be in force from one month to several years during the loan. … [Read more...]
