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  • Income bond
    A debt instrument that promises to repay principal, but only pay interest when earned by the issuing institution.

  • Income fund
    A conservative mutual fund that seeks to return current income as its primary objective rather than emphasizing growth.

  • Income statement
    A statement showing a company's revenues, expenses, and income over a specified period of time.

  • Income stock
    Common stock with a history of high dividend yield.

  • Indenture
    A written agreement describing the terms of a debenture, e.g., interest rate, maturity date, etc.

  • Independent broker
    Exchange member who executes orders for other, temporarily busier brokers.

  • Index
    Statistical measure (not an average) of specific securities' value.

  • Index and option market (IOM)
    A division of the Chicago Mercantile Exchange (CME) established in 1982 for trading stock index products and options.

  • Inflation
    The value of a currency decreasing as prices of goods and services increase over time.

  • Initial public offering (IPO)
    A company's first sale of stock to the public. Companies making an IPO are seeking outside equity capital and a public market for their stock.

  • Institutional investor
    A bank, mutual fund, pension fund, or other corporate entity that trades securities in large volumes.

  • Instruments
    Any financial security, e.g., stock, bond, Treasury bill, mortgages, etc.

  • Interest
    The price paid to lenders for borrowing money. Also, a share or title in property.

  • Intermarket Trading System (ITS)
    A computer system that interconnects competing exchange markets for the purpose of choosing the best market. It is operated by Securities Automation Corporation (SAC).

  • International fund
    A mutual fund that invests primarily in securities of companies domiciled outside the U.S.

  • Interrogation device
    Any machine that displays market information.

  • Inventory
    Securities bought and held by a broker or dealer for resale.

  • Investment
    Using money for the purchase of a financial product or item of value in the expectation of future profit.

  • Investor
    A person who buys or sells securities for his or her own account or the account of others.

  • Investor relations
    A corporate department that communicates with shareholders.

  • Investment bank
    A financial institution that acts as a middleman (underwriter) between the corporation issuing stocks and bonds, and the public.

  • Individual retirement account (IRA)
    Special account that invests savings and defers taxes until money is withdrawn.

  • Issue
    A particular financial asset or the act of distributing securities.

  • Issuer
    A corporation that has distributed to the public securities registered with the Securities Exchange Commission.