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Glossary

Initial Public Offering (IPO)

The first availability of stock offered by a private company seeking capital to support its growth, to the public.

Insider Trading

The prevalent definition of insider trading is the illegal action by individuals who through the scope of their work with a company, executes trades based on non-public information.

Institutional Investor

Large organizations (Mutual,Pension or Endowment funds, Insurance companies, Commercial Trusts, Investment Banks) with large amounts of capital to invest in securities, commodities or foreign exchange for it’s own benefit or that of it’s clients.

Interbank Rate

Foreign Exchange Interest charged for short-term loans transacted between banks.

Interest Rate

The premium charged by a lender for the borrowing of funding.

Intermarket Analysis

As a subset of Technical Analysis, this is the study of correlations between major asset classes to determine trend direction strength in a specific asset being traded. 

Interpolation

A mathematical process where related, known data is used to forecast an unknown value such as a security’s price or yield.

Intraday Trading

Style of trading that is short-term, where buy and sell orders are transacted within a single day.

Intrinsic Value

The hypothetical value of a company that factors in the value of future cash flows. In options trading, this refers to the difference in an option’s Strike Price and market value of the underlying asset.

Inverse Relationship

A correlation between two values where an increase in one results in a decrease in the other.

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