Individual Retirement Account (IRA)(IRA)A retirement savings program for individuals to which yearly tax-deductible contributions up to a specified limit can be made.
individual retirement arrangement (IRA)An individual retirement arrangement (IRA), which may be set up as either an account or an annuity, allows people with earned income to contribute to a…
Inefficient marketIn an inefficient market, investors may not have enough information about the securities in that market to make informed decisions about what to buy or…
infant industryA new or developing domestic industry whose costs of production are higher than those of established firms in the same industry in other countries.
InflationA condition of increasing prices. Inflation is generally measured by the Consumer Price Index.
Inflation guard endorsementAn endorsement to a homeowner policy that automatically increases the amount of insurance every three months.
Inflation protectionAutomatically adjusts your home insurance policy limits to account for increases in the costs to repair or rebuild a property.
Inflation rateThe inflation rate is a measure of changing prices, typically calculated on a month-to-month and year-to-year basis and expressed as a percentage.
Inflation-adjusted returnInflation-adjusted return is what you earn on an investment after accounting for the impact of inflation.
Inflation-protected security (TIPS)US Treasury inflation-protected securities (TIPS) adust the principal twice a year to reflect inflation or deflation measured by the Consumer Price Index…
Inherited IRAAn inherited IRA is an IRA that passes to a beneficiary at the death of the IRA owner.
Initial public offering (IPO)When a company reaches a certain stage in its growth, it may decide to issue stock, or go public, with an initial public offering (IPO).
Insider tradingIf management of a publicly held company, members of its board of directors, or anyone who holds more than 10% of the company trades its shares, it's…
Inspection ReportA report filed by an individual employed by the insurance company or credit agency, giving general information on the physical condition of the property.
Inspector General ActEnacted in 1978, this Act authorized establishment of Offices of Inspectors General, “independent and objective units” within federal agencies that…
Inspector General Reform ActEnacted in 2008, this Act amended the Inspector General Act to enhance the independence of inspectors general and to create a Council of the Inspectors…
InstinetInstinet is the world's largest agency brokerage firm. As an agency firm, it doesn't trade stock for its own account as traditional brokerage houses do.
Institutional fundAn institutional fund is a mutual fund that's available to large investors, such as pension funds and not-for-profit organizations, with substantial…
Institutional investorInstitutional investors buy and sell securities in large volume, typically 10,000 or more shares of stock, or bonds worth $200,000 or more, in a single…
Insufficient FundsWhen a depositor's checking account balance is inadequate to pay a check presented for payment.
Insurable interestAny financial interest a person has in the property or person insured. In life insurance, a person´s or party´s interest - financial or emotional - in…
Insurance (Hazard)Insurance to protect the homeowner and the lender against physical damage to a property from sources such as but not limited to fire, wind, or vandalism.
Insurance to valueAn amount of insurance at, or close to, the value of the property insured.
Insurance trustYou set up an insurance trust to own a life insurance policy on your life. When you die, the face value of the policy is paid to the trust.
InsuredThe policyholder or person(s) protected in case of a loss/claim.
Insured bondAn insured bond is a municipal bond whose interest and principal payments are guaranteed by a triple-A rated bond insurer.
Insured SharesDeposits held in federal and most state chartered credit unions that are guaranteed by the National Credit Union Share Insurance Fund (NCUSIF) against…
Integrated pension planIn an integrated pension plan, your employer counts part of your Social Security benefit in the defined benefit pension you're entitled to and takes that…
InterestThe term interest is used to describe the cost of using money, a right, share, or title in property.
interest incomeThe income a person receives from certain bank accounts or from lending money to someone else.
Interest rateThe amount paid by a borrower to a lender in exchange for the use of the lender's money for a certain period of time.
Interest Rate (High/Low)The percentage of interest paid for money in the deposit accounts, without regard to compounding, shown as an annual figure.
Interest Rate RiskInterest-rate risk describes the impact that a change in current interest rates is likely to have on the value of your investment portfolio.
Interest-free periodThe number of days you have to pay your bill in full before an interest charge is assessed on purchases.
Interest-Only MortgageWith an interest-only mortgage loan, you pay only the interest portion of each scheduled payment for a fixed term, often five to seven years.
Intermediate Service Provider (ISP)(ISP)Assists in processing tax return information between the ERO (or the taxpayer, in the case of online filing) and the Transmitter.
Intermediate-term bondIntermediate-term bonds mature in two to ten years from the date of issue. Typically, the interest on these bonds is greater than that on short-term bonds…
InternalizationInternalization occurs when a securities trade is executed within a brokerage firm rather than though an exchange.
International fundA mutual fund that invests in securities from a number of countries.
International Monetary Fund (IMF)The IMF was set up as a result of the United Nations Bretton Woods Agreement of 1944 to help stabilize world currencies, lower trade barriers, and help…
IntestateA person who dies without a will is said to have died intestate. In this case, the probate court in the person's home state - sometimes known as…
intrinsic valueA company's intrinsic value, or underlying value, is used to calculate its projected worth.
Introducing broker (IB)An introducing broker (IB) is a person or firm that takes orders to buy or sell futures contracts from clients and passes those orders to a futures…
Introductory APRThe APR charged during the credit card's introductory period after a credit card account is opened.
investment adviserAny person who, for compensation, engages in the business of advising others, either directly or through publications or writings, as to the value of…
Investment bankAn investment bank is a financial institution that helps companies take new bond or stock issues to market, usually acting as the intermediary between the…
Investment ClubIndividual investors often join together, either formally or informally, to form investment clubs.
Investment CompanyA corporation or trust whose primary purpose is to invest the funds of its shareholders.
investment fundA term generally interchangeable with "mutual fund."
Investment gradeWhen a bond is rated investment grade, its issuer is considered able to meet its obligations, exposing bondholders to minimal default risk.
Investment horizonYour investment horizon is the point in time when you hope to achieve a particular investment goal.
Investment IncomeThe equity dividends, bond interest, and/or cash interest paid on an investment.
Investment objectiveAn investment objective is a financial goal that helps determine the type of investments you make.
Investment Propertya property not considered to be a primary residence that is purchased in order to generate income, profit from appreciation, or to take advantage of…
InvestorAny person or institution that invests in mortgages or mortgage-backed securities.
IRA rolloverIf you move assets from an existing individual retirement account (IRA) or an employer sponsored retirement plan to an IRA, you've completed an IRA…
IRC Section 401(a)Tax code section authorizing a qualified retirement plan to be operated and supported by an employer and to provide retirement benefits.
Irrevocable trustAn irrevocable trust is a legal agreement whose terms cannot be changed by the creator or grantor who establishes the trust without the consent of the…
IRS e-fileRefers to the preparation and transmission of tax return information to the IRS using telephone lines or a computer with a modem or Internet access.
IssueWhen a corporation offers a stock or bond for sale, or a government offers a bond, the security is known as an issue, and the company or government is the…
issuerIssuer means any person who issues or proposes to issue any security. Corporations, for example, may issue stock to the public, limited partnerships may…
January EffectEach year, the stock market tends to increase slightly in value between December 31 and the end of the first week of January.
Joint AccountAn account owned by two or more persons. Either party can conduct transactions separately or together as set forth in the deposit account contract.
JumboA loan that exceeds the statutory size limit eligible for purchase or securitization by either FNMA or FHLMC.
Jumbo CDJumbo CDs are large-denomination certificates of deposit with balances of at least $100,000, and sometimes $1 million or more.
Junior securityIn the world of bonds, the term junior means having less claim to repayment. If you own a junior security and the issuing company goes out of business…
Junk bondJunk bonds carry a higher-than-average risk of default, which means that the bond issuer may not be able to meet interest payments or repay the loan when…
Justified complaintA complaint that exposes an apparent violation of a policy provision, contract provision, rule, or statute; or which indicates a practice or service that…
Keogh planA group of qualified retirement plans, including profit sharing and money purchase defined contribution plans and a defined benefit plan, is available to…
KitingWriting a check in an amount that will overdraw the account but making up the deficiency by depositing another check on another bank.
LadderingLaddering is an investment strategy that calls for establishing a pattern of rolling maturity dates for a portfolio of fixed-income investments.
LapseTermination of a policy due to non-payment of premiums.
Lapsed PolicyA policy that has terminated for non-payment of premiums.
Last trading dayThe last trading day is the final day on which an order to buy or sell an options contract or futures contract can be executed.
Late ChargeThe fee charged for delinquent payment on an installment loan, usually expressed as a percentage of the loan balance or payment.
Late paymentA late payment is your failure to make at least the minimum payment so that it reaches us by or before the time and due date on your bill.
Late-payment feeA fee charged if your payment is received after the due date.
Lead underwriterWhen a company wants to raise capital by selling securities to investors, it partners with an investment bank, known as the lead underwriter.
LeaseA contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent).
LenderAn individual or financial institution that lends money with the expectation that the money will be returned with interest.
Lender-Placed Insuranceinsurance placed on a home or property by a lender to protect their interest in the collateral which secures the loan.
Level loadSome load mutual funds impose a recurring sales charge, called a level load, each year you own the fund rather than a sales charge to buy or sell shares.
Level Premium InsuranceInsurance for which the cost is distributed evenly over the premium payment period.
Level term insuranceWith a level term life insurance policy, your annual premium remains the same for the term, which may be as long as 10 or 20 years.
Level yield curveA level yield curve results when the interest rate on short-term US Treasury issues is essentially the same as the rate on long-term Treasury bonds.
LeverageLeverage is an investment technique in which you use a small amount of your own money to make an investment of much larger value.
Leveraged buyoutA leveraged buyout occurs when a group of investors using borrowed money, often raised with high yield bonds or other kinds of debt, takes control of a…
leveragingThe borrowing of money for investment purposes.
LiabilityA legally enforceable financial obligation caused by negligence.
Liability CoverageInsurance protection that pays for claims or judgments brought against the insured.
Liability insuranceInsurance that pays when you are liable for injuries to other persons or damage to their property.
Liability limitsThe maximum amount your liability policy will pay. Your policy must pay at least $25,000 for each injured person, up to a total of $50,000 per accident…
LiableResponsible or answerable by law; legally obligated.