Impaired Credit
What is 'Impaired Credit' A deterioration in the creditworthiness of an individual or entity. This is usually reflected through a lower credit score, in the case of an individual, or a reduction in the credit rating assigned to an entity by a rating agency or lender. The borrower whose credit has been impaired will generally have lesser...
Implied Rate
What is an 'Implied Rate' An implied rate is an interest rate that is determined by the difference between the spot rate and the forward/futures rate. The degree of relative costliness of a future rate can be assessed by comparing the implied rate with the spot rate. Calculated as: Explaining 'Implied Rate' ...
Incestuous Dealing
Incestuous Dealing What is 'Incestuous Dealing ' The dealing of securities among multiple parties, in order to create advantageous financial benefits for one or more of the parties involved. Incestuous dealing typically involves two or more parties and is done with the intention to create a tax benefit, through the trading of securities. Although the dealings...
Implied Contract Terms
What are 'Implied Contract Terms' Implied contract terms are items that a court will assume are intended to be included in a contract, even though they are not expressly stated. Businesspeople generally do not want to rely upon a court's interpretation of implied terms, so a good contract will often be very lengthy so that as many...
Ideation
What is ideation and why is it important Ideation is the process of generating new ideas. It is an important tool for businesses, as it can help to solve problems, stimulate innovation, and create new products or services. The best ideas are those that are creative and original, and that address a specific need or opportunity. Ideation can be done...
Immediate Or Cancel Order (IOC)
What is an 'Immediate Or Cancel Order - IOC' An immediate or cancel order (IOC) is an order to buy or sell a security that must be executed immediately, and any portion of the order that cannot be immediately filled is cancelled. An IOC order is one of several "duration orders" that investors can use to specify...
Implied Call
What is an implied call and how can you use it in your trading strategy An implied call is a situation in which the underlying asset of a call option is likely to increase in value, making the call option more valuable. This can occur when the underlying stock price is rising or when market conditions are generally bullish. When...
Idiosyncratic Risk
What is 'Idiosyncratic Risk' Idiosyncratic risk, also referred to as unsystematic risk, is the risk that is endemic to a particular asset such as a stock and not a whole investment portfolio. Being the opposite of systematic risk (the overall risk that affects all assets like fluctuations in the stock market or interest rates), Idiosyncratic risk can be mitigated through...
Impaired Capital
What is 'Impaired Capital' 1. When a bank's actual assets are worth less than their stated value. When a bank has impaired capital, this capital can be liquidated if the bank cannot make up the deficiency. State laws define the treatment of a bank with impaired capital. 2. When a company's actual assets are...
Implied Authority
What is implied authority and how can it help your business Implied authority is a legal concept that applies to businesses and other organizations. It refers to the authority that is implied by a person's position within an organization. For example, a manager has the implied authority to give employees instructions and expect them to be followed. This type of...