Investing glossary
Plain-language definitions of the investing terms you meet in filings, in the news and in Finzer.
21 terms, all of them on this page
I
Implied Volatility
Implied volatility is the market’s forecast of how much a stock is expected to move, expressed as an annualized percentage and backed out of option prices. Learn how it’s calculated, what drives it, and how smart investors actually use it.
Income Investing
Income investing is a strategy focused on generating regular cash flow from assets like dividends, interest, and distributions. Learn how it works, what drives returns, and how to use it intelligently in your portfolio.
Income Statement
An income statement shows a company’s revenues, expenses, and profit over a specific period. Learn how to read it, what drives the numbers, and how investors actually use it.
Index Fund
An index fund is a low-cost investment fund that tracks a specific market index by holding the same securities in the same proportions. Learn how index funds work, why costs matter so much, and how investors actually use them.
Index Rebalancing
Index rebalancing is the periodic process of adjusting an index’s holdings back to predefined rules like weightings, size, or sector limits. Learn how it moves markets, impacts ETFs, and creates predictable trading pressure.
Industry
An industry is a group of companies that sell similar products or services and are affected by the same economic forces. Learn how investors use industries to analyze stocks, spot trends, and manage risk.
Inflation
Inflation is the rate at which the general level of prices for goods and services rises over time, reducing purchasing power. Learn what causes inflation, how it affects investments, and what to actually do when it shows up.
Inflation Targeting
Inflation targeting is a monetary policy framework where a central bank aims to keep inflation around a specific percentage, usually near 2%. Learn how it works, why markets care, and how investors should position around it.
Inflation-Adjusted Returns
Inflation-adjusted returns measure how much an investment actually grows after subtracting inflation. Learn how to calculate them, why they matter, and how smart investors use them to protect real wealth.
Initial Public Offering
An initial public offering (IPO) is when a private company sells shares to the public for the first time, becoming publicly traded. Learn how IPOs work, why companies go public, and how investors should approach them.
Initial Public Offering (IPO)
An Initial Public Offering (IPO) is when a private company sells shares to the public for the first time and lists on a stock exchange. Learn how IPOs work, why companies go public, and how investors should approach them.
Insider Selling
Insider selling is when company executives, directors, or large shareholders sell their own company’s stock, disclosed through SEC filings. Learn how to interpret it, when it matters, and how smart investors actually use it.
Interbank Market
The interbank market is where banks lend to and borrow from each other, typically for very short-term funding at benchmark rates like SOFR. Learn how it works, why it matters, and what investors should watch.
Interest Coverage Ratio
The interest coverage ratio measures how easily a company can pay interest on its debt using operating profits. Learn how to calculate it, what levels are safe, and how investors actually use it.
Interest rate
An interest rate is the percentage charged or paid on borrowed or saved money over a specific period, typically quoted annually. Learn how rates are set, why they move markets, and how investors can use them to make smarter decisions.
Interest Rates
Interest rates are the cost of borrowing money or the return earned on savings, expressed as a percentage over time. Learn how they move markets, impact your portfolio, and what to actually do when rates rise or fall.
Internal Rate of Return
Internal Rate of Return (IRR) is the annualized return that makes the present value of an investment’s cash flows equal zero. Learn how IRR is calculated, when it works, when it fails, and how smart investors actually use it.
Intrinsic Value
Intrinsic value is an estimate of what a business is truly worth based on its future cash flows, not its current stock price. Learn how investors calculate it, why it diverges from market prices, and how to use it in real decisions.
Inventory Turnover
Inventory turnover measures how many times a company sells and replaces its inventory over a period. Learn how to calculate it, what drives it, and how investors use it to spot operational strength-or hidden risk.
Investment Risk
Investment risk is the chance that an investment delivers a return different from what you expect, including the possibility of losing money. Learn the types of risk, what drives them, and how smart investors manage them.
ISIN
An ISIN is a 12-character international code that uniquely identifies a specific security, like a stock or bond. Learn how ISINs work, where investors encounter them, and how to actually use them in practice.