Financial and Investment Glossary
Financial Dictionary
Immediate or Cancel
IOC. An order where the goal is to buy or sell the stated total quantity but is flexible in two distinct senses:
1.The investor will accept any partial fill.
2. The order, whether partially or fully executed, is immediately cancelled thereafter and does not remain open. As a best practice approach, an investor should consider attaching limits to IOC (Immediate Or Cancel) orders.
In The Money
The difference between the initial grant price and the current market value of the stock.
A call option is in-the-money if the strike price is less than the market price of the underlying security. A put option is in-the-money if the strike price is greater than the market price of the underlying security
Incentive Stock Option (ISO)
The right to purchase company stock at a specific exercise price over a stated option term. Generally, an ISO entitles you to favorable tax treatment if the acquired shares are held for at least one year from the date of exercise and two years from the grant date. If you adhere to the required holding period, the difference between the sale price and grant price will be taxed at a capital gains rate. However, if you choose to sell off all or a portion of the shares before the expiration of the applicable holding periods, you may recognize ordinary income and will be taxed accordingly. In non-U.S. locations, tax implications may vary; consult your employer or tax advisor.
Income
Earnings, generally from interest or dividends, that are credited or paid to an investor.
Income Funds
Fund that normally seeks a high level of current income through investing in income-producing stocks, bonds, and money market instruments.
Income Stock
A stock with a history of paying consistently high dividends.
Index
A group of securities or mutual funds with characteristics or investment objectives similar to those of the fund being evaluated. The performance of these indices is used as a benchmark to compare the performance of individual funds.
Individual Account
When one person is investing for himself or herself, the account is called a single or individual account. A single account is a type of ownership for an individual client. For example: Jane V. Doe
Inflation
A sustained increase in the general price level for goods and services.
Inflation Risk
The risk that inflation will erode the value of an investment. Investments with low expected returns have more inflation risk than investments that generally have higher expected returns.
Initial Price/NAV
The initial price and/or initial NAV represents the price you enter as the initial price in your Security Tracker.
Initial Public Offering (IPO)
The first public issuance of stock from a company that has not been previously publicly traded.
Insider
An officer, director or principal shareholder of a publicly owned company, and any members of his or her immediate family.
Institutional Ownership %
Percentage of common shares outstanding held by institutional investors.
Insurance
A bond in which the issuer has an insurance policy guaranteeing payment of the issue, should the issuer default.
Insured
The person whose life is insured under an insurance policy.
Insured Bonds
Bonds in which the principal and interest are insured by an insurance company. Either the issuer or the dealer can have the bonds insured.
Interest
The cost of using money. A borrower pays interest to a lender, usually a percentage of the loan amount.
Interest / Dividends
Income from investments plus the change (+/-) in estimated accrued interest from one month to the next.
Intermediate Term
A time frame, usually between six and 12 months in regard to stocks and one to 10 years for fixed income securities.
International Funds
Fund invests fund assets in securities with primary trading markets outside of the United States.
Investment Grade
The broad credit designation given bonds which have high probability of being paid and minor speculative features. Moody's- BAA3 or higher; S&P- BBB- or higher.
Investment Objective
One or more goals -- such as long-term capital growth, current income, growth and income, etc. -- that an investor or a mutual fund pursues. Each fund's objective is stated in its prospectus.
IRA (Traditional)
Individual Retirement Account (IRA). An IRA is a retirement product, which is set-up by individuals to accumulate tax-deferred savings. IRAs can be established by the individual who opens the account, by a non-working spouse, or for a minor with earned income.
IRA assets have the opportunity to grow tax-deferred until the participant makes withdrawals. That means the participant earns income on their principal, income on their income, and income on the income that would otherwise go toward paying taxes.
IRA Contribution
For an IRA, this is the amount of funds contributed for the current year.
IRA Rollover (IRRA)
Individual Retirement Rollover Accounts (IRRA) are IRAs, which were designed to provide clients with a vehicle to postpone tax payments on distributions from employer-sponsored-like retirement accounts. They are frequently referred to as "holding tanks" or "conduit IRAs" because they maintain the tax-deferred status of assets so that they can be redeposited into another like retirement plan in the future.
Direct Rollover:
A direct rollover is the movement of assets between two "like" retirement plan accounts or to an IRA. The direct rollover was designed to assist participants in rolling over assets from one retirement plan to another without having to pay the penalty or withholding taxes levied by the IRS.
Issue Date
The date that policy documents are printed and the policy is issued in the system. The incontestability and suicide provisions run from this date.
Issuer
The entity (corporation, government, etc.) that issues securities.
IOC. An order where the goal is to buy or sell the stated total quantity but is flexible in two distinct senses:
1.The investor will accept any partial fill.
2. The order, whether partially or fully executed, is immediately cancelled thereafter and does not remain open. As a best practice approach, an investor should consider attaching limits to IOC (Immediate Or Cancel) orders.
In The Money
The difference between the initial grant price and the current market value of the stock.
A call option is in-the-money if the strike price is less than the market price of the underlying security. A put option is in-the-money if the strike price is greater than the market price of the underlying security
Incentive Stock Option (ISO)
The right to purchase company stock at a specific exercise price over a stated option term. Generally, an ISO entitles you to favorable tax treatment if the acquired shares are held for at least one year from the date of exercise and two years from the grant date. If you adhere to the required holding period, the difference between the sale price and grant price will be taxed at a capital gains rate. However, if you choose to sell off all or a portion of the shares before the expiration of the applicable holding periods, you may recognize ordinary income and will be taxed accordingly. In non-U.S. locations, tax implications may vary; consult your employer or tax advisor.
Income
Earnings, generally from interest or dividends, that are credited or paid to an investor.
Income Funds
Fund that normally seeks a high level of current income through investing in income-producing stocks, bonds, and money market instruments.
Income Stock
A stock with a history of paying consistently high dividends.
Index
A group of securities or mutual funds with characteristics or investment objectives similar to those of the fund being evaluated. The performance of these indices is used as a benchmark to compare the performance of individual funds.
Individual Account
When one person is investing for himself or herself, the account is called a single or individual account. A single account is a type of ownership for an individual client. For example: Jane V. Doe
Inflation
A sustained increase in the general price level for goods and services.
Inflation Risk
The risk that inflation will erode the value of an investment. Investments with low expected returns have more inflation risk than investments that generally have higher expected returns.
Initial Price/NAV
The initial price and/or initial NAV represents the price you enter as the initial price in your Security Tracker.
Initial Public Offering (IPO)
The first public issuance of stock from a company that has not been previously publicly traded.
Insider
An officer, director or principal shareholder of a publicly owned company, and any members of his or her immediate family.
Institutional Ownership %
Percentage of common shares outstanding held by institutional investors.
Insurance
A bond in which the issuer has an insurance policy guaranteeing payment of the issue, should the issuer default.
Insured
The person whose life is insured under an insurance policy.
Insured Bonds
Bonds in which the principal and interest are insured by an insurance company. Either the issuer or the dealer can have the bonds insured.
Interest
The cost of using money. A borrower pays interest to a lender, usually a percentage of the loan amount.
Interest / Dividends
Income from investments plus the change (+/-) in estimated accrued interest from one month to the next.
Intermediate Term
A time frame, usually between six and 12 months in regard to stocks and one to 10 years for fixed income securities.
International Funds
Fund invests fund assets in securities with primary trading markets outside of the United States.
Investment Grade
The broad credit designation given bonds which have high probability of being paid and minor speculative features. Moody's- BAA3 or higher; S&P- BBB- or higher.
Investment Objective
One or more goals -- such as long-term capital growth, current income, growth and income, etc. -- that an investor or a mutual fund pursues. Each fund's objective is stated in its prospectus.
IRA (Traditional)
Individual Retirement Account (IRA). An IRA is a retirement product, which is set-up by individuals to accumulate tax-deferred savings. IRAs can be established by the individual who opens the account, by a non-working spouse, or for a minor with earned income.
IRA assets have the opportunity to grow tax-deferred until the participant makes withdrawals. That means the participant earns income on their principal, income on their income, and income on the income that would otherwise go toward paying taxes.
IRA Contribution
For an IRA, this is the amount of funds contributed for the current year.
IRA Rollover (IRRA)
Individual Retirement Rollover Accounts (IRRA) are IRAs, which were designed to provide clients with a vehicle to postpone tax payments on distributions from employer-sponsored-like retirement accounts. They are frequently referred to as "holding tanks" or "conduit IRAs" because they maintain the tax-deferred status of assets so that they can be redeposited into another like retirement plan in the future.
Direct Rollover:
A direct rollover is the movement of assets between two "like" retirement plan accounts or to an IRA. The direct rollover was designed to assist participants in rolling over assets from one retirement plan to another without having to pay the penalty or withholding taxes levied by the IRS.
Issue Date
The date that policy documents are printed and the policy is issued in the system. The incontestability and suicide provisions run from this date.
Issuer
The entity (corporation, government, etc.) that issues securities.