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Investing, Financial, Trading and Crypto Terms - Dictionary (I)

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Investing/Finance/Trading/Crypto Dictionary
Ichimoku Cloud: Ichimoku Cloud is a technical indicator that is used to identify trends and potential buy and sell signals in the financial markets. It consists of several lines and a cloud-like area, which is why it is often called the "Ichimoku Cloud". The indicator was developed by a Japanese journalist in the late 1960s and is commonly used in Japan, but it has gained popularity worldwide in recent years.
In the money: In the money refers to an option that has intrinsic value, meaning it would have value if it were exercised immediately. A call option is considered in the money when the current price of the underlying asset is above the strike price, and a put option is in the money when the current price of the underlying asset is below the strike price.
Inception date: The inception date refers to the date that a fund, index or other financial product was first established. It is used to determine the performance of the investment since its launch.
Income distribution: Income distribution refers to the payment of dividends or interest to investors from a company, fund or other financial product. This payment may be made on a regular schedule, such as monthly or quarterly, or it may be made as a one-time distribution.
Income fund: An income fund is a type of mutual fund or exchange-traded fund (ETF) that is focused on generating income for investors. These funds typically invest in a mix of bonds, dividends-paying stocks, and other fixed-income securities.
Index: An index is a statistical measure of the performance of a group of securities, such as a stock market or a sector of the economy. Indices are used as benchmarks to gauge the performance of a portfolio or to track the performance of a specific market or sector.
Index providers: Index providers are organizations that create and maintain indices. These providers create indices based on certain criteria, such as market capitalization, sector, or region, and then calculate the performance of the index by tracking the performance of the underlying securities. Examples of index providers include S&P Global, MSCI, and FTSE Russell.
Indices trading: Index trading refers to buying or selling financial instruments that track the performance of an index. These instruments can include exchange-traded funds (ETFs), futures, or options. Index trading allows investors to gain exposure to a specific market or sector without having to purchase individual stocks.
Inflation: Inflation is an economic term that refers to the rate at which the general level of prices for goods and services is rising and subsequently, the purchasing power of currency is falling. It is measured by the Consumer Price Index (CPI) or the Producer Price Index (PPI), which track the average change in prices of a basket of goods and services over a certain period. Central Banks try to maintain a low and stable inflation rate for a healthy economy.
Inflation risk: Inflation risk is the risk that the value of an investment will decrease due to a rise in the general level of prices. This can happen when the returns on an investment are not high enough to keep pace with inflation, thus decreasing the purchasing power of the investment over time.
Interest: Interest is the cost of borrowing money, typically a percentage of the amount borrowed. It can also refer to the payment made to a depositor for keeping money in a savings account or other type of deposit account.
Interest rate swap: An interest rate swap is a financial contract in which two parties agree to exchange a series of cash flows based on a specified interest rate or index. The most common type of interest rate swap is when one party agrees to pay a fixed rate and the other party agrees to pay a floating rate, based on a specific benchmark.
Interest rates: Interest rates are the percentage at which money can be borrowed or earned on a deposit. They are used to measure the cost of borrowing and the return on savings, and can have a significant impact on the economy and financial markets.
Internal rate of return: The internal rate of return (IRR) is a measure of the profitability of an investment. It is the discount rate at which the net present value (NPV) of the investment's cash flows is equal to zero. A higher IRR indicates a more profitable investment.
Intrinsic value: Intrinsic value refers to the inherent or fundamental value of an asset, independent of its market price. It is the value that would be present if the asset were not traded on a market.
Investment appraisal: Investment appraisal is the process of evaluating the potential return and risk of an investment. It is used to determine whether an investment is worth making and to compare different investment opportunities.
Investment grade: Investment grade refers to the quality of a company or a bond, typically rated by credit rating agencies, to indicate the level of risk associated with an investment in that security. Investment grade securities are considered to be of high credit quality, with a low risk of default, and are suitable for most investors.
IPO: An IPO, or Initial Public Offering, is the process by which a privately-held company offers its shares to the public for the first time. This allows the company to raise capital by selling shares to the public, and it also provides a way for the company's owners and early investors to liquidate their holdings.