| Term | Definition |
|---|---|
| Import |
The foreign goods and services bought by local citizens. |
| In the money |
The situation in which the strike price of an option is able to generate earnings. |
| Income bond fund |
A mutual fund that seeks a high level of steady income by investing in a mix of corporate and government bonds. |
| Income equity fund |
A mutual fund that seeks a high level of steady income by investing in stock with constant dividends payments. |
| Income fund |
A mutual fund that provides free income flow from investments. |
| Index arbitrage |
An investment strategy to benefit from divergences between actual and theoretical futures prices. |
| Index fund |
A mutual fund that simulates the volatility and performance of a specific index, such as S&P 500. |
| Index option |
An option based on a stock index. |
| Inflation |
A persistent increase in consumer prices or a persistent decline in the purchasing power of money. |
| Initial public offering (IPO) |
A company’s first sale of stocks to the public. |
| Insider |
The person with access to confidential information regarding the company before it is publicly announced. |
| Insider trading |
Transaction of securities and making profit by taking the advantage of having inside information. |
| Interest rate swaps |
The rate of exchanging interest payments on a specific amount of principal. |
| Internal rate of return (IRR) |
The discount rate that makes the NPV of an investment equals to zero. |
| International monetary fund (IMF) |
An organization with aims to stabilizing the world currency system after war. |
| Glossary |
| Tutorial |
| Psychology |