Stock market terms starting with I

Iceberg Order Orders, Execution & Market Structure qualitative A large order that reveals only a small portion to the order book at a time, refreshing as each slice is filled. Test: total quantity exceeds the disclosed quantity, and a fresh slice enters the book only after the previous one is fully executed

Ichimoku Cloud Indicators & Oscillators ₹ A multi-line system plotting conversion and base lines, a shaded cloud projected forward, and a lagging span behind price. Conversion Line = (9-period High + Low) / 2; Base Line = (26-period High + Low) / 2; Leading Span A = average of those two, plotted 26 periods ahead; Leading Span B = (52-period High + Low) / 2, plotted 26 periods ahead

IDCW Option Funds, ETFs & Index Investing ₹ The plan option under which a fund periodically distributes part of the NAV to unit holders as income distribution cum capital withdrawal. Post-Payout NAV = Pre-Payout NAV - Amount Distributed per Unit

Illusion of Control Market Psychology & Behavioural Finance qualitative The belief that one can influence outcomes that are largely determined by chance. Test: confidence in a favourable outcome rises with involvement or effort, without any change in the actual probability

Immediate-or-Cancel Order Orders, Execution & Market Structure qualitative An order that executes whatever quantity is available at once and cancels the remainder rather than resting in the book. Test: any unfilled quantity is cancelled immediately on submission instead of joining the order book

Impact Cost Orders, Execution & Market Structure % The cost, expressed as a percentage, of executing a stated order size against the current order book relative to the mid price. Impact Cost % = (Actual Execution Price - Ideal Mid Price) / Ideal Mid Price x 100

Impairment Fundamental Analysis & Valuation ₹ crore A write-down of an asset's carrying value when its recoverable amount falls below what the balance sheet records. Impairment Loss = Carrying Amount - Recoverable Amount, where Recoverable Amount is the higher of fair value less costs to sell and value in use

Implied Volatility Derivatives, Futures & Options % The volatility figure that, put into an option pricing model, reproduces the option's current market price. Test: solve the pricing model for the volatility input that makes the model price equal the observed market price

In the Money Derivatives, Futures & Options qualitative An option that would have positive value if exercised immediately. Call: Spot > Strike; Put: Spot < Strike

iNAV Funds, ETFs & Index Investing ₹ The indicative net asset value of an ETF, computed and published continuously through the trading day. iNAV = (Live Value of the Underlying Basket + Cash Component) / Units Outstanding

Independent Director Corporate Actions, Dividends & Governance qualitative A board member with no material pecuniary relationship with the company, its promoters or its management. Test: the director meets the statutory independence criteria on relationships, remuneration and tenure, and is so declared annually

Index Funds, ETFs & Index Investing index points A rule-based measure of the value of a defined group of securities, used to represent a market or segment. Index Value = (Current Free-Float Market Capitalisation of Constituents / Base Market Capitalisation) x Base Index Value

Index Fund Funds, ETFs & Index Investing qualitative A mutual fund that seeks to replicate an index's holdings and return rather than to beat it. Test: the fund holds constituents in index proportions and measures itself by tracking difference rather than by outperformance

Index Futures Derivatives, Futures & Options ₹ A futures contract whose underlying is a stock market index rather than a single security. Contract Value = Index Level x Lot Size; settlement is in cash against the final index value

Index of Industrial Production Economy, Macro & Market Cycles index points A monthly index measuring the volume of output in mining, manufacturing and electricity. IIP = weighted average of production indices for mining, manufacturing and electricity, against a base year

Index Rebalancing Funds, ETFs & Index Investing qualitative The periodic revision of an index's constituents and weights according to its published rules. Test: constituents are reviewed on a stated schedule against eligibility criteria, with additions and deletions announced in advance

Index Weighting Funds, ETFs & Index Investing % The rule determining how much of an index each constituent represents. Free-Float Weight = Constituent's Free-Float Market Capitalisation / Sum of All Constituents' Free-Float Market Capitalisations

Indexation Benefit Indian Market, Regulation & Taxation ₹ An adjustment that raises an asset's cost of acquisition for inflation before computing a long-term capital gain. Indexed Cost = Cost of Acquisition x (Cost Inflation Index of the Year of Sale / Cost Inflation Index of the Year of Purchase)

India VIX Indian Market, Regulation & Taxation % An index measuring the volatility the market expects in the Nifty over the next 30 days, derived from Nifty option prices. Computed from the order book of near and next-month Nifty options, expressed as an annualised percentage

Indicator Lag Indicators & Oscillators days The delay between a change in price and the corresponding change in an indicator derived from it. Approximate lag of a simple moving average = (n - 1) / 2 periods, where n is the lookback

Inflation Economy, Macro & Market Cycles % A sustained rise in the general price level, which reduces what each rupee can buy. Inflation Rate = (Current Price Index - Prior Year Price Index) / Prior Year Price Index x 100

Inflation Risk Risk & Portfolio Management % The risk that rising prices erode the purchasing power of an investment's returns. Real Return = (1 + Nominal Return) / (1 + Inflation Rate) - 1

Inflation-Indexed Bond Bonds & Fixed Income ₹ A bond whose principal is adjusted for inflation, so both the coupon and the redemption amount rise with prices. Adjusted Principal = Original Principal x (Current Index Value / Index Value at Issue); Coupon = Adjusted Principal x Real Coupon Rate

Information Ratio Risk & Portfolio Management ratio (x, times) Return above a benchmark per unit of tracking error. Information Ratio = (Portfolio Return - Benchmark Return) / Tracking Error

Terms starting with I