Idiosyncratic risk refers to the risk that is unique to a particular asset or a small group of assets. It is the portion of an asset's total risk that is not correlated with the overall market risk. This type of…

Impaired Asset: An impaired asset is a long-term asset whose market value has fallen below its carrying value on the balance sheet, indicating that it may not be recoverable through future cash flows. This situation often requires a company to…

Implied Volatility (IV) is a metric used in options pricing that reflects the market's expectation of future volatility of the underlying asset's price. It is derived from the option's market price and indicates how much the market believes the asset's…

Income StatementAn income statement, also known as a profit and loss statement, is a financial report that summarizes a company's revenues, costs, and expenses over a specific period, usually a fiscal quarter or year. The primary purpose of an income…

Independent Contractor refers to a person or entity contracted to perform services for another entity under terms specified in a contract. Unlike an employee, an independent contractor retains control over how to complete the work, is responsible for their own…

Index refers to a systematic arrangement of data, typically in a list or table format, that allows for quick retrieval of information. It can denote various concepts depending on the context: In Literature: An index is a list of topics,…

An index fund is a type of mutual fund or exchange-traded fund (ETF) that aims to replicate the performance of a specific index, such as the S&P 500 or the Dow Jones Industrial Average. These funds are designed to provide…

Infrastructure refers to the fundamental facilities and systems that serve a country, city, or area, enabling its economy to function. It includes the physical structures, systems, and services necessary for the operation of a society and its economy. Examples of…

Initial Coin Offering (ICO) An Initial Coin Offering (ICO) is a fundraising mechanism in which new cryptocurrencies or tokens are sold to investors in exchange for established cryptocurrencies, such as Bitcoin or Ethereum, or fiat currency. It is similar to…

Insider trading refers to the buying or selling of publicly-traded securities based on non-public, material information about the company. This practice is illegal in many jurisdictions, as it violates the principle of transparency and fairness in the securities markets.For instance,…

An Institutional Investor is an organization that invests on behalf of its members or clients, typically pooling large sums of money to achieve greater investment returns and reduce risk through diversification. These investors include entities like pension funds, insurance companies,…

An insurance broker is a professional who acts as an intermediary between clients seeking insurance coverage and insurance companies. Brokers help clients understand their insurance needs, provide advice on various insurance products, and assist in the purchase of policies that…

Intellectual Property (IP) refers to creations of the mind that are legally protected, allowing creators to control the use of their inventions, designs, and artistic works. It encompasses various types of intangible assets that can be owned and traded. Types…

Intention-to-Treat Analysis refers to a principle in clinical trials where participants are analyzed in the groups to which they were originally assigned, regardless of whether they completed the treatment, adhered to the protocol, or crossed over to another group. This…

Interest Coverage Ratio (ICR) is a financial metric used to determine a company's ability to pay interest on its outstanding debt. It is calculated by dividing the company's earnings before interest and taxes (EBIT) by its interest expenses. A higher…

An interest rate is the percentage of a loan or deposit charged by a lender to a borrower, or paid by a bank to depositors, typically expressed as an annual percentage of the principal. It is a crucial component of…

Internal Rate of Return (IRR) is a financial metric used to evaluate the profitability of an investment or project. It represents the discount rate at which the net present value (NPV) of all cash flows (both incoming and outgoing) from…

The International Bank Account Number (IBAN) is a standardized system of identifying bank accounts across national borders, facilitating international transactions. It consists of a series of alphanumeric characters, which include a country code, check digits, and the domestic bank account…

Internet of Things (IoT) The Internet of Things (IoT) refers to the network of physical objects that are embedded with sensors, software, and other technologies for the purpose of connecting and exchanging data with other devices and systems over the…

An Internet Service Provider (ISP) is a company or organization that provides individuals and businesses access to the Internet. ISPs can offer a range of services including broadband access, dial-up, email accounts, web hosting, and domain registration. They may use…

Intrinsic Value refers to the inherent worth of an asset, determined by its fundamental qualities rather than its market price. This value can be calculated through various methods, including discounted cash flow analysis, book value, or comparison to similar assets.…

Inventory refers to the goods and materials that a business holds for the purpose of resale, production, or utilization in the manufacturing process. It encompasses a wide range of items including raw materials, work-in-progress, and finished products. Types of inventory…

Inventory refers to the goods and materials that a business holds for the purpose of resale, production, or utilization in the manufacturing process. It encompasses a wide range of items including raw materials, work-in-progress, and finished products. Types of inventory…

An inverted yield curve is a financial phenomenon that occurs when long-term interest rates fall below short-term interest rates for bonds of the same credit quality. This inversion suggests that investors expect future economic slowdown or recession, leading them to…

Investing refers to the act of allocating resources, usually money, with the expectation of generating an income or profit. It involves purchasing assets, such as stocks, bonds, real estate, or other securities, with the aim of growing wealth over time.…