Implicit Rental Rate
What is 'Implicit Rental Rate' The opportunity costs that a firm incurs as a result of using their own assets for ongoing operations instead of other alternative uses. The implicit rental rate can be either greater than or less than the firm's cost of capital. Explaining 'Implicit Rental Rate' In the event that the...
Implied Contract
What is an implied contract An implied contract is a legally binding agreement between two parties that is not written or spoken, but is simply understood to exist based on the actions or behavior of the parties involved. In other words, an implied contract is an agreement that is inferred from the actions or conduct of the parties, rather than...
If-Converted Method
What is 'If-Converted Method' A technique for calculating the impact of convertible securities on the stock market if they are converted into fresh shares. In the if-converted approach, only in-the-money convertible securities (i.e., securities where the stock price is greater than the exercise price) are taken into account. Assume for the purposes of this technique, that convertible securities are converted at...
In Escrow
What does 'In Escrow' mean In escrow is an item such as money or a piece of property that has been transferred to a third party with the intentions of delivery to a grantee as part of a binding agreement. Valuables in escrow are delivered, generally by an escrow agent, to a grantee upon satisfaction of outlined...
ImClone (IMCL)
What is 'ImClone - IMCL' A publicly-traded biotechnology company marketing products in the field of oncology. The company made international headlines in 2002 after ImClone's founder and CEO Sam Waksal was indicted for attempting an insider trade of the company's stock. Shortly after Waksal's indictment, "domestic diva" Martha Stewart was also indicted for insider trading of the...
Implied Repo Rate
Definition Purchasing an item in the spot market with borrowed funds and delivering it in the futures market where the notional is utilized to pay the loan is known as borrowing the implied repo rate (also known as the IMPLEMENTED REPO RATE). What is the 'Implied Repo Rate' This rate of return is generated by simultaneously selling a bond futures or forward...
In The Pink
What is 'In The Pink' An informal expression used to describe a situation in which an investor or an economy is in a good financial position. More generally, it refers to being in the best of health or condition. Explaining 'In The Pink' Blue chip stocks and healthy economies are examples of in-the-pink (or...
Ifo Business Climate Survey
What is 'Ifo Business Climate Survey' A key monthly survey that measures the business climate in Germany. It is widely followed as an early indicator of the state of the German economy. The Ifo Business Climate Survey is based on approximately 7,000 monthly survey responses from firms in manufacturing, construction, wholesale and retail. As the largest economy...
Immediate Family
What is an 'Immediate Family' Immediate family members usually include a person’s parents, spouse, children and siblings. A person’s grandparents, grandchildren, in-laws and domestic partners sometimes are included in the immediate family unit, depending on which law or organization governs the determination. The definition of immediate family affects whether a person can use paid or unpaid leave...
Imputed Cost
Definition Uncovering the opportunity cost of a factor of production that a firm already owns and thus doesn't have to pay rent is known as imputed costing in economics. Imputed costing, also known as implied costing, or notional costing, is the cost that a firm must forego in order to use a factor of production that it already owns and...