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Personal Finance Glossary



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I-Bonds
"I-Bonds" or "inflation bonds" are U.S. Treasury savings bonds with indexed to try to take account... more
 
Identity Theft
"Identity theft" is the deliberate assumption of another person's identity, usually to gain... more
 
IDR
An "international depository receipt" or "IDR" is a certificate issued by a bank as evidence of... more
 
IMM
The "International Monetary Market" or "IMM" is a centralized market in Chicago where currency,... more
 
Impaired Credit
"Impaired credit" refers to the situation where a company's or an individual's financial... more
 
Imputed Interest
"Imputed interest" is interest that is considered to have been paid although no actual payment was... more
 
In the Money Options
The phrase "in the money option" refers to a stock option where the market price of the underlying... more
 
Incentive Stock Option
An "incentive stock option" or "ISO" is a stock option that has met certain requirements specified... more
 
Income
The term "income" generally refers to the money earned by individuals or companies. For... more
 
Income Bond
An "income bond" is a bond that only pays interest if the corporation has enough earnings. These... more
 
Income Fund
An "income fund" is a mutual fund whose goal is to provide an income from investments, typically in... more
 
Income Property
"Income property" refers to real estate purchased for the purpose of generating... more
 
Income Statement
"Income statement" is an accounting statement showing revenues, expenses, and net income of a... more
 
Income Tax
"Income tax" is a tax based on income earned by an individual or company. The taxpayer typically... more
 
Income Verification
The term "income verification" refers to the process whereby a lender confirms the income of a... more
 
Incorporation
"Incorporation" is a legal process through which a corporation is created. Usually, a corporation... more
 
Indemnification
Indemnification is the legal right to be reimbursed pursuant to an indemnity for damage or loss... more
 
Indemnity
"Indemnity" is a contract whereby one party agrees to compensate a second party for any damages or... more
 
Indenture
An "indenture" is a legal document setting forth the specifics of a bond issuance, and setting... more
 
Independent Contractor Agreement
An "independent contractor agreement" is a contract between two parties where the "contractor"... more
 
Index Fund
An "index fund" is a mutual fund that is designed to match the returns of a particular stock market... more
 
Index Option
An "index option" refers to call and put option contracts traded on an underlying index, such as... more
 
Individual Retirement Account
An "individual retirement account" or "IRA" is a federally sanctioned retirement account for... more
 
Inflation
"Inflation" refers to a general increase in the prices of goods and services. Over time, inflation... more
 
Inflation Bonds
"Inflation bonds" or "I-Bonds" are U.S. Treasury savings bonds indexed to try to take account of... more
 
Inheritance
"Inheritance" refers to the passing of assets and liabilities to heirs or persons identified in a... more
 
Inheritance Tax
An "inheritance tax" is a tax based on the value of property in an estate of a deceased individual.... more
 
Initial Public Offering
An "initial public offering" or "IPO" is the process of a private company first selling its stock... more
 
Insider Information
The term "insider information" refers to relevant material information about a publicly traded... more
 
Insider Trading
"Insider trading" is the buying or selling of a security by a person (e.g., an officer, director,... more
 
Insolvency
"Insolvency" describes a financial condition experienced by a person or business when assets no... more
 
Installment Account
An "installment account" is an account that has a set regular payment, typically every month. Auto... more
 
Installment Debt
An "installment debt" is a debt that has a set regular payment, typically every month. Auto loans... more
 
Installment Sale
An "installment sale" is a transaction in which the sale price is paid in installments. The term... more
 
Instinet
"Instinet" is a stock exchange allowing members to display bid and offer quotes for stocks, and to... more
 
Institutional Fund
An "institutional fund" is a type of mutual fund catering primarily to institutional investors,... more
 
Institutional Investor
An "institutional investor" is a financial institution such as a mutual fund, bank, insurance... more
 
Institutional Shares
"Institutional shares" refer to a class mutual fund shares that are available to large... more
 
Insurance
"Insurance" protects against loss or damage, the insured makes periodic payments to an insurer, and... more
 
Insurance Agent
An "insurance agent" is a person who is authorized by an insurance company to sell... more
 
Insurance Broker
An "insurance broker" is a professional broker who represents the interest of the buyer in... more
 
Insurance Claim
An "insurance claim" is a claim for reimbursement of a loss or damage pursuant to the coverage... more
 
Insurance Policy
An "insurance policy" is a contract providing for coverage of loss or damage to person or property,... more
 
Insurance Premium
An "insurance premium" is the payment made by an insured under the terms of an insurance... more
 
Insured
An "insured" is the person(s) or property covered by an insurance... more
 
Inter-Vivos Trust
An "inter vivos trust" is a trust that an individual establishes while he or she is alive, enabling... more
 
Interest
"Interest" is the price paid for borrowing money. For example, a 5% annual interest rate on a $1000... more
 
Interest Deduction
"Interest deduction" is an interest expense that is allowed as a tax deduction for tax purposes.... more
 
Interest Only Mortgage
An "interest only mortgage" is a real estate loan in which only the interest is payable at regular... more
 
Interest Rate
An "interest rate" is the amount of interest charged, usually characterized as a percentage of the... more
 
Interest Rate Cap
An "interest rate cap" is an interest rate ceiling in a loan where the interest rate can not exceed... more
 
Interest Rate Options
"Interest rate options" are option contracts that are based upon underlying debt instruments. ... more
 
Interest-Only Loan
An "interest-only loan" is a loan in which payment of principal is deferred until maturity, and the... more
 
Interest-Only Mortgage
An "interest-only mortgage" is a mortgage in which payment of principal is deferred until maturity,... more
 
Internal Rate of Return
The "internal rate of return" or "IRR" is the discount rate often used in capital budgeting to... more
 
Internal Revenue Code
The "Internal Revenue Code" contains the various statutes that make up the U.S. federal... more
 
Internal Revenue Service
The "Internal Revenue Service" or "IRS" is the US Treasury Department agency responsible for... more
 
International Bond
"International bonds" are bonds that are issued by an entity or company in a country where they are... more
 
International Depository Receipt
An "international depository receipt" or "IDR" is a certificate issued by a bank as evidence of... more
 
International Fund
An "international fund" is a mutual fund investing in securities of countries other than the United... more
 
International Monetary Market
The "International Monetary Market" or "IMM" is a centralized market in Chicago where currency,... more
 
Intestacy
"Intestacy" is the situation where a person dies without having made a valid will. Intestacy law... more
 
Intestate
"Intestate" refers to dying without a will or without a... more
 
Intraday
The term "intraday" means "within the day." The term is often used when stating the high and low... more
 
Intrastate Offering
An "intrastate offering" is an offering of securities solely to residents of one state, structured... more
 
Inverted Yield Curve
An "inverted yield curve" is the unusual situation where long term debt instruments have a lower... more
 
Investment Bank
An "investment bank" is a financial services company that gives advice to companies, assists them... more
 
Investment Banker
An "investment banker" is a person with an investment bank that gives advice to companies, assists... more
 
Investment Company
An "investment company" is a company (corporation, LLC, trust, or partnership) that is primarily... more
 
Investment Company Act of 1940
The "Investment Company Act of 1940" is the federal law that regulates investment companies... more
 
Investment Grade Bonds
"Investment grade bonds" are high-quality bonds rated as investment grade by one of the credit... more
 
Investment Income
"Investment income" is income that is generated from securities and other investments, such as... more
 
Investment Real Estate
"Investment real estate" is real property held for investment, as opposed to property used for... more
 
Investor
An "investor" is someone who commits capital in order to gain financial returns from the... more
 
Investors Rights Agreement
An "investor rights agreement" is a contract typically used by venture capitalists in connection... more
 
Invoice
An "invoice" is a bill or list of charges for services rendered or products sold. For example, an... more
 
IPO
An "initial public offering" or "IPO" is the process of a private company first selling its stock... more
 
IPO Lock-Up
An "IPO lock-up" is a contract with certain investors in a company in connection with its IPO. A... more
 
IRA
An "individual retirement account" or "IRA" is a federally sanctioned retirement account for... more
 
IRR
The "internal rate of return" or "IRR" is the discount rate often used in capital budgeting to... more
 
Irrevocable Beneficiary
The term "irrevocable beneficiary" often refers to a beneficiary whose rights to the proceeds of an... more
 
Irrevocable Letter of Credit
An "irrevocable letter of credit" is a letter of credit that can not be cancelled by the issuing... more
 
Irrevocable Proxy
An "irrevocable proxy" is an authorization to a person to act on behalf of another party with... more
 
Irrevocable Trust
An "irrevocable trust' is a trust that can not be amended or... more
 
IRS
"IRS" stands for the Internal Revenue Service, the US Treasury Department agency responsible for... more
 
ISO
An "incentive stock option" or "ISO" is a stock option that meets certain requirements specified by... more
 
Issuer
An "issuer" is an entity, such as a corporation, municipality, or government, that issues or... more
 
Itemized Deduction
"Itemized deductions" are amounts paid by an individual taxpayer for personal and certain business... more
 

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