Immunization
Definition Known also as multi-period immunization, immunity is a risk-mitigation approach in which the duration of assets and liabilities are matched in order to reduce the effect of interest rates on net worth as time progresses. What is 'Immunization' Immunization, sometimes known as "multiperiod immunization," is a financial technique in which the durations of assets and obligations are matched, therefore limiting the...
Identity Theft
DefinitionIdentity theft is the deliberate use of someone else's identity, usually as a method to gain a financial advantage or obtain credit and other benefits in the other person's name, and perhaps to the other person's disadvantage or loss. The person whose identity has been assumed may suffer adverse consequences, especially if they are held responsible for the perpetrator's...
Inactive Bond Crowd
What is 'Inactive Bond Crowd' A group of exchange members who buys and sells bonds, that are infrequently traded. Limit orders placed by the inactive bond crowd, may take a longer period of time to fill, due to the absence of frequent trading. The opposite of inactive bond crowd is the active bond crowd. ...
Impulse Wave Pattern
What is 'Impulse Wave Pattern' A term used in the Elliott wave theory to describe the strong move in a stock's price coinciding with the main direction of the underlying trend. These impulse waves are shown in the illustration below as wave 1, wave 3 and wave 5. Impulse waves also refer to the strong downward movements...
IRR – Internal Rate of Return
In order to build shareholder equity, firms carefully evaluate projects to decide which projects they should fund and which they shouldn’t. The project management team of a company seeks projects that can enhance shareholder’s value and avoid those that cannot earn back the cost of the capital. When it comes to evaluating projects, the IRR or internal rate of...
Incentive Distribution Rights (IDRs)
What is 'Incentive Distribution Rights - IDRs' The general partner of a limited partnership receives an increasing proportion of the additional distributable cash flow generated by the partnership as a result of these provisions. This happens along with increases in the per-unit distributions to the limited partners. This share of increased distributable cash flow is normally valued at 2 percent,...
Iceberg Order
What is an iceberg order and how does it work An iceberg order is a type of trade that is designed to minimize market impact. It works by breaking up a large order into smaller chunks and releasing them into the market over time. This allows the trader to buy or sell the asset without moving the price too much. Iceberg...
Investment Banks
There are few careers as lucrative and prestigious as investment banking. But what exactly is investment banking, and how do you go about getting a job in this highly competitive field? In this article, we will explore the history, jobs, and skills required for a career in investment banking. We will also take a look at some of the...
Import Substitution Industrialization – ISI
DefinitionImport substitution industrialization is a trade and economic policy which advocates replacing foreign imports with domestic production. ISI is based on the premise that a country should attempt to reduce its foreign dependency through the local production of industrialized products. The term primarily refers to 20th-century development economics policies, although it has been advocated since the 18th century by...
In-House Financing
What is 'In-House Financing' In-house financing is a type of seller financing in which a firm extends customers a loan, allowing them to purchase its goods or services. In-house financing eliminates the firm's reliance on the financial sector for providing the customer with funds to complete a transaction. Explaining 'In-House Financing' The automobile sales...