Stock market terms starting with I

Initial Margin Derivatives, Futures & Options ₹ The deposit required before a derivative position can be opened, held as collateral against potential losses. Initial Margin = SPAN Margin + Exposure Margin, computed by the clearing corporation for the portfolio

Initial Public Offering Market Basics & Instruments ₹ crore The first sale of a company's shares to the public, after which the shares are listed and traded on a stock exchange. Total IPO size = Fresh Issue Amount + Offer for Sale Amount

Insider Trading Corporate Actions, Dividends & Governance qualitative Trading in a company's securities while in possession of unpublished price-sensitive information about it. Test: the person is an insider, possesses unpublished price-sensitive information, and trades or communicates it without a legitimate purpose

Insolvency and Bankruptcy Code Corporate Actions, Dividends & Governance qualitative India's 2016 law establishing a time-bound process for resolving corporate insolvency or liquidating the company. Test: on admission of a default, a resolution professional takes control and a resolution plan must be approved within the prescribed period or liquidation follows

Intangible Assets Financial Statements & Accounting ₹ crore Identifiable non-physical assets such as software, patents, licences and trademarks that are expected to generate future benefits. Carrying Value = Cost - Accumulated Amortisation - Accumulated Impairment

Interest Coverage Ratio Fundamental Analysis & Valuation ratio (x, times) Operating profit divided by interest expense, measuring how many times over the company's earnings can pay its interest bill. Interest Coverage = Operating Profit (EBIT) / Interest Expense

Interest Expense Financial Statements & Accounting ₹ crore The cost of borrowed money charged to the profit and loss statement for a period. Interest Expense = Average Borrowings x Effective Interest Rate

Interest Rate Cycle Economy, Macro & Market Cycles % The multi-year swing in policy and market interest rates between tightening and easing phases. Test: policy rates move in a sustained direction across several meetings, reversing only after inflation or growth conditions change materially

Interest Rate Risk Risk & Portfolio Management % The risk that changes in interest rates reduce the value of an investment or raise the cost of borrowing. Approximate Price Change = -Modified Duration x Change in Yield

Interim Dividend Corporate Actions, Dividends & Governance ₹ A dividend declared by the board during a financial year, before the annual accounts are finalised. Test: the dividend is declared by the board mid-year and paid before the annual general meeting approves the final accounts

International Fund Funds, ETFs & Index Investing % A fund giving Indian investors exposure to securities listed outside India. Return in Rupees = (1 + Foreign Market Return) x (1 + Currency Change) - 1

Intraday Trading Market Basics & Instruments qualitative Buying and selling the same security within a single trading session so that no position is carried overnight. Test: the position is opened and closed within the same trading day, leaving a net quantity of zero at the close

Intrinsic Value Fundamental Analysis & Valuation ₹ The value of a business justified by the cash it can be expected to produce over its life, discounted to today. Intrinsic Value = Sum of Future Free Cash Flows discounted at the required rate of return

Inventory Financial Statements & Accounting ₹ crore Goods held for sale, work in progress, and raw materials, carried at the lower of cost and net realisable value. Inventory Days = Average Inventory / Cost of Goods Sold x 365

Inventory Turnover Ratio Fundamental Analysis & Valuation ratio (x, times) Cost of goods sold divided by average inventory, showing how many times stock is sold and replaced in a year. Inventory Turnover = Cost of Goods Sold / Average Inventory; Inventory Days = 365 / Inventory Turnover

Inverse Head and Shoulders Technical Analysis & Chart Patterns qualitative A formation of three troughs in which the middle trough is the lowest and the outer two are roughly level, joined by a neckline through the intervening highs. Neckline = line through the two highs between the troughs; conventional measured move = Head Depth below Neckline, projected up from the break

Inverted Hammer Technical Analysis & Chart Patterns qualitative A candlestick with a small body near the bottom of its range and a long upper wick, appearing after a decline. Test: Upper Wick is at least twice the Body, Lower Wick is minimal, and the candle follows a decline

Inverted Yield Curve Bonds & Fixed Income % A yield curve on which short-maturity yields exceed long-maturity yields. Test: yield on a short maturity, such as two years, exceeds the yield on a longer one, such as ten years

Investing Cash Flow Financial Statements & Accounting ₹ crore The net cash used in or generated by buying and selling long-term assets and investments during a period. Investing Cash Flow = Proceeds from Asset Sales + Investment Income - Capital Expenditure - Acquisitions - Investments Made

Investment Adviser Indian Market, Regulation & Taxation qualitative A SEBI-registered professional who advises on securities for a fee and owes a fiduciary duty to the client. Test: the person holds a SEBI registration as an investment adviser and charges a fee for advice rather than earning commission on products

Investment Grade Bonds & Fixed Income qualitative A credit rating of BBB minus or above, indicating relatively low expected default risk. Test: the rating is BBB- or higher on the standard scale

Investor Market Basics & Instruments qualitative A market participant who buys securities for their expected long-term cash flows and business performance rather than for short-term price movement. Test: the holding decision rests on the underlying business or issuer's economics, with a horizon measured in years

Investor Protection Fund Indian Market, Regulation & Taxation ₹ A fund maintained by each exchange to compensate investors for losses arising from a defaulting trading member. Test: the claim arises from a declared default of a trading member and falls within the compensation limit set by the exchange

IPO Allotment Indian Market, Regulation & Taxation qualitative The process of distributing shares among applicants when an issue is subscribed, by lottery in the oversubscribed retail portion. Test: in an oversubscribed retail portion, allotment is by lottery in minimum lots, so each application has an equal chance regardless of size

Terms starting with I