I – Investment Vocabulary

Immediate or Cancel Order: An order at market price (or some other limited price) that is to be executed in whole, or in part, as soon as it is received. The portion that is not transacted is considered canceled.
In and Out: Describes the purchase and sale of the same security within a short period of time to take advantage of price fluctuations.
Income Bonds: Bonds on which the payment of interest is due only when the issuer has attained sufficient income. There is no guaranteed return. In some cases, unpaid interest may accumulate as a claim against the issuer when the principal comes due.
Indebtedness: The obligation assumed by a borrower, guarantor, or endorser to repay funds that have been or will be paid out on the borrower’s behalf.
Indenture: A written agreement used in connection with a security issue. The document sets the maturity date, interest rate, security, and other terms for the issue holder, the issuer, and (when appropriate) the trustee.
Interest: Compensation paid or to be paid for the use of money. The rate of interest is generally expressed as an annual percentage.
Interest Rate: The interest payable each year on borrowed funds, expressed as a percentage of the principal.
Investment Banking: A term used to describe the financing of the capital requirements of an enterprise, as opposed to the working capital of a business. Investment bankers buy and sell securities, such as stocks, bonds, and mortgages. They act as the intermediaries between the investor and the corporation or government that needs to finance its operations. An investment bank charges a fee for services relating to securities, such as advisory, negotiation, and distribution services. See Syndicate; Underwriter.
Investment Portfolio: A collection of securities held by a bank, individual, institution, or government agency for investment purposes.
Investment Securities: Securities purchased for an investment portfolio, as opposed to those purchased for resale to customers.
Investor: A person who purchases securities with the intention of holding them to make a profit.
Issue: A group of identical securities, or the marketing and selling of such securities.
Issue Price: The price at which a new group of identical securities (new issue) is put on the market.
Issuer: Any corporation or governmental unit that borrows money through the sale of securities.