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Interest rate parity theorem
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Interest rate parity theoremA theory that the interest rate differential between two countries is equal to the differential between the forward exchange rate and the spot exchange rate.
RELATED TERMS--------------------------------------
Interest
The amount of money a lender loans a borrower to pay for using the borrower's principal.
Differential
A small charge added to the purchase price and subtracted from the selling price by the dealer for odd-lot quantities.
Exchange
A marketplace in which shares, options and futures on stocks, bonds, commodities, and indexes are traded.
SIMILAR TERMS--------------------------------------
INTEC Ltd
INTEC Ltd is a large Australian company in the field of materials. Their Australian Stock Exchange (ASX) code is INL.
Integer programming
Variant of linear programming in which the solution values must be integers.
INTEGRA Mining Limited
INTEGRA Mining Limited is a large Australian company in the field of materials. Their Australian Stock Exchange (ASX) code is IGR.
Integrated financial market
A market in which there are no barriers to financial flows, and the same risk asset commands the same expected return, irrespective of domicile.
INTEGRATED Group Limited
INTEGRATED Group Limited is a large Australian company in the field of commercial services and supplies. Their Australian Stock Exchange (ASX) code is IWF.
INTEGRATED Investment Group Limited
INTEGRATED Investment Group Limited is a large Australian company in the field of diversified financials. Their Australian Stock Exchange (ASX) code is IIG.
INTEGRATED RESEARCH Limited
INTEGRATED RESEARCH Limited is a large Australian company in the field of software and services. Their Australian Stock Exchange (ASX) code is IRI.
INTEGRATED TREE CROPPING Limited
INTEGRATED TREE CROPPING Limited is a large Australian company in the field of materials. Their Australian Stock Exchange (ASX) code is ITF.
Integration
The situation when more than one company choose to join or work together.
Integrative growth
Extension by way of backward, forward or horizontal integration.
INTEGRIS Credit Union
INTEGRIS is a credit union with head office in OKLAHOMA CITY, OK
INTEGRITY Credit Union
INTEGRITY is a credit union with head office in BARBERTON, OH
Intel
Intel is a top United States corporation in the field of semiconductors, and its estimated market value is 149,390 million US dollars.
Intel Corp
Intel Corp is one of the world's largest corporations in the semiconductors sector. Its head office is in the United States of America.
Intel Corporation
Intel Corporation is one of the largest American companies in the IT industry. Its NASDAQ code is INTC.
Intelbras
Intelbras is an IT and computers company in Brazil.
INTELLECT Holdings Limited
INTELLECT Holdings Limited is a large Australian company in the field of technology hardware and equipment. Their Australian Stock Exchange (ASX) code is IHG.
Intellectual property rights
Patents, copyrights, and proprietary technologies and processes that may be the basis of a company's competitive advantage.
Intelnews
Intelnews is a newspaper in the Ukraine.
Inter Pipeline Fund
Inter Pipeline Fund is one of Canada's largest companies.
Inter vivos trust
A rating computed and used by insurance companies that represents the probability of a client filing an insurance claim during his or her coverage.
INTER-AMERICAN Credit Union
INTER-AMERICAN is a credit union with head office in BROOKLYN, NY
INTER-GUILD Credit Union
INTER-GUILD is a credit union with head office in LOS ANGELES, CA
INTER-ISLAND Credit Union
INTER-ISLAND is a credit union with head office in HONOLULU, HI
Interalb Albania
Interalb Albania is a major Albanian company (internet service provider).
Interalbanian Albania
Interalbanian Albania is a major Albanian insurance company.
Interbank market
Financial institutions exchange of currencies between and among themselves.
Interbank spread
The difference between a bank's offer and bid rates for deposits in the Eurocurrency market.
INTERCHANGE Credit Union
INTERCHANGE is a credit union with head office in LAVERGNE, TN
INTERCHINA HOLD
INTERCHINA HOLD is a securities company with code 00202 at Hong Kong stock. Board lot: 5,000.
INTERCOAL Limited
INTERCOAL Limited is a large Australian company in the field of materials. Their Australian Stock Exchange (ASX) code is INI.
Intercommodity spread
Going long on one futures market in a given delivery month and simultaneously going short on the same commodity and delivery month but a different futures market but with similar underlying asset.
Intercompany loan
Loan made by one unit of a corporation to another unit of the same corporation.
Intercompany transaction
Transaction carried out between two units of the same corporation.
Intercontinental de Cartera, S.A.SICAV
Intercontinental de Cartera, S.A.SICAV is a Spanish company listed at Madrid Stock Exchange. Its business activity is capital investment.
InterContinental Hotels
InterContinental Hotels is a top British corporation in the field of hotels, restaurants and leisure, and its estimated market value is 8,010 million US dollars.
Interdelivery spread
Used in futures or options market to refer the purchase of one month of a contract and selling another month in the same contract, in the hope that the price difference will widen or narrow, depending on the investment.
Interest
The amount of money a lender loans a borrower to pay for using the borrower's principal.
Interest coverage ratio
The ratio of earnings before interest and taxes to annual interest expense. This ratio measures a firm's ability to pay interest.
Interest coverage test
A debt limitation that prohibits the issuance of additional long-term debt if the issuer's interest coverage would, as a result of the issue, fall below some specified minimum.
Interest deduction
An interest expense, such as interest on a margin account, that is allowed as a deduction for tax purposes.
Interest during construction
Interest accumulated during construction period, which usually equals capitalized interest.
Interest equalization tax
Tax on foreign investment by residents of the US which was abolished in 1974.
Interest expense
The amount reported by a company or individual as an expense for borrowed money.
Interest in possession
The legal right to receive income from, or occupy, trust property.
Interest on interest
Interest earned on reinvestment of each interest payment on money invested.
Interest only loan
A loan in which payment of principal is deferred and interest payments are the only current obligation.
Interest only mortgage
A mortgage loan where the borrower repays interest only.
Interest only mortgage calculator
A specific calculator to find out the rates and fees that will be paid on an interest only loan to by property.
Interest only strip
A security based solely on the interest payments from a pool of mortgages, Treasury bonds, or other bonds.
Interest payments
Contractual debt payments based on the coupon rate of interest and the principal amount.
Interest rate
The percentage rate at which interest is charged on a loan or paid on savings etc
Interest rate agreement
An agreement whereby one party, for an up-front premium, agrees to compensate the other at specific time periods if a designated interest rate (the reference rate) is different from a predetermined level (the strike rate).
Interest rate cap
An interest rate agreement in which payments are made when the reference rate exceeds the strike rate. Also called an interest rate ceiling.
Interest rate floor
An interest rate agreement in which payments are made when the reference rate falls below the strike rate.
Interest rate futures contract
A futures contract based on an interbank deposit rate or an underlying debt security.
Interest rate on debt
The firm's cost of debt capital.
Interest rate parity line (IRP)
Diagonal line on a graph that characterizes interest rate parity.
Interest rate risk
The chance that a security's value will change due to a change in interest rates.
Interest rate swap
An arrangement in which two parties agree to exchange periodic interest payments, at agreed intervals, over an agreed period, but without any principal being paid.
Interest rates
The cost of borrowing money, expressed as a percentage of the loan per period of time.
Interest sensitive insurance policy
A cash value life insurance policy whose insurance dividend rates vary with respect to inflation, enabling the policyholder to avoid the loss of purchasing power associated with inflation.
Interest sensitive stock
Any stock whose price is extremely sensitive to changes in interest rates.
Interest subsidy
A subsidy, usually government-sponsored, which reduces the interest a borrower is required to pay on a loan.
Interest tax shield
The reduction in income taxes that results from the tax-deductibility of interest payments.
INTERFAITH Credit Union
INTERFAITH is a credit union with head office in EAST ORANGE, NJ
Interference
The negative way of describing governmental action in the economy.
INTERFIPOL
A trustee who is independent of the settlor. Independence is generally defined as not being related to the settlor by blood, through marriage, by adoption or in an employer-employee relationship.
Interfund transactions
Financial arrangements effected by payments made from one fund group (either Federal funds or trust funds) to another group.
Interim
A term which means in the meantime.
Interim bonus
A bonus declared by life companies when maturity of a with profits policy or death of the assured occurs between normal bonus declaration dates.
Interim dividend
The dividend declared before annual earnings are established. Companies in the UK usually pay two dividends per year, the interim dividend and the final dividend.
Interim financing
A short-term loan made to a company on the condition that a takeout will follow with long-term or intermediate financing.
Interim rate of return
The rate of return earned between cash flows.
Interim statement
A financial statement that reflects only a limited period of a company's financial statement, not the entire fiscal year.
Interkalenda, SICAV, S.A.
Interkalenda, SICAV, S.A. is a Spanish company listed at Madrid Stock Exchange. Its business activity is capital investment.
INTERLAKES Credit Union
INTERLAKES is a credit union with head office in MADISON, SD
Interlocking directorate
Describes cross-memberships of directors on each other's company Board of Directors.
Intermap Technologies
Intermap Technologies is one of Canada's largest companies.
Intermarket sector spread
The yield spread between two fixed-income securities in different sectors with the same maturity.
Intermarket spread swaps
An exchange of one bond for another based on the manager's projection of a realignment of spreads between sectors of the bond market.
Intermarket Surveillance Information System (ISIS)
A database that distributes information from all the major stock exchanges in the United States.
Intermarket Trading System (ITS)
An electronic communications network that links nine US markets: the New York (NYSE), American (AMEX), Boston (BSE), Chicago (MSE), Cincinnati (CSE), Pacific (PSE) and Philadelphia (PHLX) stock exchanges, the Chicago Board Options Exchange (CBOE), and the NASD.
Intermediaries
All the people or organizations in the marketing channel between producers and customers.
Intermediate goods
Goods that will be further processed or transformed before being sold to consumers.
Intermediate term
Typically one-ten years.
Intermediate trend
General movement in price data that lasts from three weeks to six months.
Intermediated market
A financial market in which some financial institution stands between counterparties to financial transactions.
Intermediation
Investment through a financial institution.
INTERMIN Resources Limited
INTERMIN Resources Limited is a large Australian company in the field of materials. Their Australian Stock Exchange (ASX) code is IRC.
Intermittency
When a non-linear dynamical system alternates between periodic and chaotic behavior.
INTERMOCO Limited
INTERMOCO Limited is a large Australian company in the field of technology hardware and equipment. Their Australian Stock Exchange (ASX) code is INT.
Intermoney 1, SICAV, S.A.
Intermoney 1, SICAV, S.A. is a Spanish company listed at Madrid Stock Exchange. Its business activity is capital investment.
Internal audit
A control by a company's own accountants, checking for completeness, accuracy and deviations from standard accounting procedures.
Internal auditor
An employee of a company who analyzes the company's accounting records to that the company is following and complying with all regulations.
Internal expansion
Growth of assets resulting from internal financing or internally generated cash flow.
Internal finance
Finance generated within a firm by retained earnings and depreciation.
Internal growth rate
The highest level of growth achievable for a business without obtaining outside financing.
Internal market
The mechanisms for issuing and trading securities within a nation, including its domestic market and foreign market.
Internal measure
The number of days that a firm can finance operations without additional cash income.
Internal rate of return (IRR)
Often used in capital budgeting, it's the interest rate that makes net present value of all cash flow equal zero.
Internal Revenue Code
The various statutes and regulations making up federal tax law.
INTERNAL REVENUE Credit Union
INTERNAL REVENUE is a credit union with head office in NEW ORLEANS, LA
INTERNAL REVENUE EMPLOYEES Credit Union
INTERNAL REVENUE EMPLOYEES is a credit union with head office in GREENSBORO, NC
Internal Revenue Service (IRS)
The US agency responsible for the collection of federal taxes which include personal and corporate income taxes, excise and gift taxes.
Internal Revenue Service Restructuring and Reform Act of 1998
The legislation targeted at IRS reform, particularly related to the time period required for capital gains and tax payer protection and rights.
International Accounting Standards (IAS)
An older set of standards stating how particular types of transactions and other events should be reflected in financial statements.
INTERNATIONAL AIRLINE EMPLOYEES Credit Union
INTERNATIONAL AIRLINE EMPLOYEES is a credit union with head office in ROSEDALE, NY
International All Sports Limited
International All Sports Limited is a large Australian company in the field of consumer services. Their Australian Stock Exchange (ASX) code is IAS.
International arbitrage
Simultaneous buying and selling of foreign securities and ADRs to capture the profit potential created by time, currency, and settlement inconsistencies that vary across international borders.
International Asset Pricing Model (IAPM)
The international version of the CAPM assuming that investors in each country share the same consumption basket and purchasing power parity holds.
International Bank for Reconstruction and Development (IBRD)
An organization that provides loans for economic development to member countries when private funds are unavailable. It was founded at the economic conference held at Bretton Woods in 1944 and began operations in 1946. Also called the World Bank.
International Bank of Commerce
A United States bank with head office in Laredo, Texas.
International Banking Facility (IBF)
In general, these facilities can accept time deposits from foreign customers free of reserve requirements and interest rate limitations, and can lend to foreigners if the funds are for the conduct of foreign business outside of the U.S. Net borrowing from these facilities by domestic banking offices is subject to reserve requirements.
International bonds
A collective term that refers to global bonds, Eurobonds, and foreign bonds.
International Business Company (IBC)
International Fiscal Police. The tax crime counterpart to INTERPOL.
International Chamber of Commerce (ICC)
A business organization with membership from over 80 countries that wants to harmonize trade practices worldwide by establishing agreed upon rules such as Incoterms and Uniform Customs and Procedures for Documentary Credits.
International Commercial Bank Albania
International Commercial Bank Albania is a major Albanian bank.
International Concert Attractions Limited
International Concert Attractions Limited is a large Australian company in the field of media. Their Australian Stock Exchange (ASX) code is ICP.
International Depository Receipt (IDR)
A negotiable, bank-issued certificate representing ownership of stock securities by an investor outside the country of origin.
International Development Association (IDA)
Association established to stimulate country development; it was especially suited for less prosperous nations, since it provided loans at low interest rates.
International diversification
The attempt to reduce risk by investing in more than one nation.
International Equities Corporation Limited.
International Equities Corporation Limited. is a large Australian company in the field of real estate. Their Australian Stock Exchange (ASX) code is IEQ.
International Finance Corporation (IFC)
A corporation owned by the World Bank that produces a number of well-known stock indexes for emerging markets. Its major role is to provide financing for projects in less developed countries.
International Financial and Banking Centre (IFC)
A corporation formed (incorporated) under a Company Act of a tax haven, but not authorized to do business within that country of incorporation; intended to be used for global operations.
International Fisher effect
States that the interest rate differential between two countries should be an unbiased predictor of the future change in the spot rate.
International Fisher relationship
The Fisher equation says the nominal interest rate is the product of one plus the real interest rate times one plus the expected rate of inflation.
International Forest Products
International Forest Products is one of Canada's largest companies.
International fund
A fund whose portfolio comprises a range of securities from markets around the world.
International Goldfields Limited.
International Goldfields Limited. is a large Australian company in the field of materials. Their Australian Stock Exchange (ASX) code is IGL.
International Herald Tribune
International Herald Tribune is an international newspaper.
International market index
An index listed on the American Stock Exchange tracking the performance of 50 American Depository Receipts traded on the AMEX, NYSE, and NASDAQ.
International Minerals
International Minerals is one of Canada's largest companies.
International Monetary Fund (IMF)
An international organization with 146 members, including the United States. The main functions of the International Monetary Fund are to lend funds to member nations to finance temporary balance of payments problems, to facilitate the expansion and balanced growth of international trade, and to promote international monetary cooperation among nations.
International Monetary Fund (the IMF)
Receives quotas from members and lends these, and special drawing rights, to countries with balance of payments problems.
International Monetary Market (IMM)
A division of the CME established in 1972 for trading financial futures.
International monetary system
The global network of government and commercial institutions within which currency exchange rates are determined.
International mutual fund
A mutual fund that invests strictly in securities markets throughout the world, excluding the United States. A global fund, on the other hand, invests in both foreign and domestic securities.
International Organization for Standardization
It's an organization acting as a central clearinghouse for industry standards drafted by national standard setting organizations. The American National Standards Institute is the U.S. representative of ISO.
International Paper
International Paper is a top United States corporation in the field of materials, and its estimated market value is 18,170 million US dollars.
International Petroleum Exchange (IPE)
Europe's leading energy futures and options exchange and the second largest in the world.
International Power
International Power is a top British corporation in the field of utilities, and its estimated market value is 5,080 million US dollars.
INTERNATIONAL RECTIFIER Credit Union
INTERNATIONAL RECTIFIER is a credit union with head office in EL SEGUNDO, CA
International Republican Institute Angola
International Republican Institute Angola is a major Angolan company.
International Security Market Association (ISMA)
Swiss law association located in Zurich that regroups all the participants on the Eurobond primary and secondary markets.
International Steel Group
International Steel Group is a top United States corporation in the field of materials, and its estimated market value is 4,090 million US dollars.
International Stock Exchange of the U.K. and the Republic of Ireland (ISE)
Organization that replaced the London Stock Exchange after its merger with the International Securities Regulatory Organization (ISRO).
International Swap Dealers Association (ISDA)
Formed in 1985 to promote uniform practices in the writing, trading, and settlement of swaps and other derivatives.
International trade
The exchange (buying and selling) of goods and services between different countries.
INTERNATIONAL UAW Credit Union
INTERNATIONAL UAW is a credit union with head office in DETROIT, MI
International Uranium
International Uranium is one of Canada's largest companies.
International Wine Investment Fund (The)
International Wine Investment Fund (The) is a large Australian company in the field of diversified financials. Their Australian Stock Exchange (ASX) code is IWI.
INTERNATIONALITES Credit Union
INTERNATIONALITES is a credit union with head office in CARLSBAD, NM
Internet banking
A facility provided by banks enabling customers to conduct banking transactions through their personal computer and telephone line link via a modem.
InterOil Corp.
InterOil Corp. is one of Canada's largest companies.
Interpolation
A method of approximating a price or yield that is unknown by using numbers that are known.
Interpositioning
An illegal action of a specialist or broker-dealer unnecessarily inserting him-herself into a natural transaction between a buyer and seller in order to pocket an improper profit.
Interpublic Group
Interpublic Group is a top United States corporation in the field of media, and its estimated market value is 5,560 million US dollars.
INTERSEGURO COMPAĆIA DE SEGUROS DE VIDA S.A.
INTERSEGURO COMPAĆIA DE SEGUROS DE VIDA S.A. is an insurance company listed in Peru at Lima stock exchange.
Intersil Corporation
Intersil Corporation is one of the largest American companies in the IT industry. Its NASDAQ code is ISIL.
INTERSTATE Credit Union
INTERSTATE is a credit union with head office in ANAHEIM, CA
INTERSTATE UNLIMITED Credit Union
INTERSTATE UNLIMITED is a credit union with head office in JESUP, GA
Interstig Albania
Interstig Albania is a major Albanian insurance company.
Intertape Polymer Group
Intertape Polymer Group is one of Canada's largest companies.
Intervention
The neutral term to describe governmental action in the economy.
Intestate
The situation which exists when a person dies without making a will. The person is then said to have died intestate.
INTEXT EMPLOYEES Credit Union
INTEXT EMPLOYEES is a credit union with head office in SCRANTON, PA
PREVIOUS AND NEXT TERMS--------------------------------------
Interest rate cap
An interest rate agreement in which payments are made when the reference rate exceeds the strike rate. Also called an interest rate ceiling.
Interest rate floor
An interest rate agreement in which payments are made when the reference rate falls below the strike rate.
Interest rate futures contract
A futures contract based on an interbank deposit rate or an underlying debt security.
Interest rate on debt
The firm's cost of debt capital.
Interest rate parity line (IRP)
Diagonal line on a graph that characterizes interest rate parity.
Interest rate parity theorem
Interest rate risk
The chance that a security's value will change due to a change in interest rates.
Interest rate swap
An arrangement in which two parties agree to exchange periodic interest payments, at agreed intervals, over an agreed period, but without any principal being paid.
Interest rates
The cost of borrowing money, expressed as a percentage of the loan per period of time.
Interest sensitive insurance policy
A cash value life insurance policy whose insurance dividend rates vary with respect to inflation, enabling the policyholder to avoid the loss of purchasing power associated with inflation.
Interest sensitive stock
Any stock whose price is extremely sensitive to changes in interest rates.
RELATED TERMS--------------------------------------
Interest
The amount of money a lender loans a borrower to pay for using the borrower's principal.
Differential
A small charge added to the purchase price and subtracted from the selling price by the dealer for odd-lot quantities.
Exchange
A marketplace in which shares, options and futures on stocks, bonds, commodities, and indexes are traded.
SIMILAR TERMS--------------------------------------
INTEC Ltd
INTEC Ltd is a large Australian company in the field of materials. Their Australian Stock Exchange (ASX) code is INL.
Integer programming
Variant of linear programming in which the solution values must be integers.
INTEGRA Mining Limited
INTEGRA Mining Limited is a large Australian company in the field of materials. Their Australian Stock Exchange (ASX) code is IGR.
Integrated financial market
A market in which there are no barriers to financial flows, and the same risk asset commands the same expected return, irrespective of domicile.
INTEGRATED Group Limited
INTEGRATED Group Limited is a large Australian company in the field of commercial services and supplies. Their Australian Stock Exchange (ASX) code is IWF.
INTEGRATED Investment Group Limited
INTEGRATED Investment Group Limited is a large Australian company in the field of diversified financials. Their Australian Stock Exchange (ASX) code is IIG.
INTEGRATED RESEARCH Limited
INTEGRATED RESEARCH Limited is a large Australian company in the field of software and services. Their Australian Stock Exchange (ASX) code is IRI.
INTEGRATED TREE CROPPING Limited
INTEGRATED TREE CROPPING Limited is a large Australian company in the field of materials. Their Australian Stock Exchange (ASX) code is ITF.
Integration
The situation when more than one company choose to join or work together.
Integrative growth
Extension by way of backward, forward or horizontal integration.
INTEGRIS Credit Union
INTEGRIS is a credit union with head office in OKLAHOMA CITY, OK
INTEGRITY Credit Union
INTEGRITY is a credit union with head office in BARBERTON, OH
Intel
Intel is a top United States corporation in the field of semiconductors, and its estimated market value is 149,390 million US dollars.
Intel Corp
Intel Corp is one of the world's largest corporations in the semiconductors sector. Its head office is in the United States of America.
Intel Corporation
Intel Corporation is one of the largest American companies in the IT industry. Its NASDAQ code is INTC.
Intelbras
Intelbras is an IT and computers company in Brazil.
INTELLECT Holdings Limited
INTELLECT Holdings Limited is a large Australian company in the field of technology hardware and equipment. Their Australian Stock Exchange (ASX) code is IHG.
Intellectual property rights
Patents, copyrights, and proprietary technologies and processes that may be the basis of a company's competitive advantage.
Intelnews
Intelnews is a newspaper in the Ukraine.
Inter Pipeline Fund
Inter Pipeline Fund is one of Canada's largest companies.
Inter vivos trust
A rating computed and used by insurance companies that represents the probability of a client filing an insurance claim during his or her coverage.
INTER-AMERICAN Credit Union
INTER-AMERICAN is a credit union with head office in BROOKLYN, NY
INTER-GUILD Credit Union
INTER-GUILD is a credit union with head office in LOS ANGELES, CA
INTER-ISLAND Credit Union
INTER-ISLAND is a credit union with head office in HONOLULU, HI
Interalb Albania
Interalb Albania is a major Albanian company (internet service provider).
Interalbanian Albania
Interalbanian Albania is a major Albanian insurance company.
Interbank market
Financial institutions exchange of currencies between and among themselves.
Interbank spread
The difference between a bank's offer and bid rates for deposits in the Eurocurrency market.
INTERCHANGE Credit Union
INTERCHANGE is a credit union with head office in LAVERGNE, TN
INTERCHINA HOLD
INTERCHINA HOLD is a securities company with code 00202 at Hong Kong stock. Board lot: 5,000.
INTERCOAL Limited
INTERCOAL Limited is a large Australian company in the field of materials. Their Australian Stock Exchange (ASX) code is INI.
Intercommodity spread
Going long on one futures market in a given delivery month and simultaneously going short on the same commodity and delivery month but a different futures market but with similar underlying asset.
Intercompany loan
Loan made by one unit of a corporation to another unit of the same corporation.
Intercompany transaction
Transaction carried out between two units of the same corporation.
Intercontinental de Cartera, S.A.SICAV
Intercontinental de Cartera, S.A.SICAV is a Spanish company listed at Madrid Stock Exchange. Its business activity is capital investment.
InterContinental Hotels
InterContinental Hotels is a top British corporation in the field of hotels, restaurants and leisure, and its estimated market value is 8,010 million US dollars.
Interdelivery spread
Used in futures or options market to refer the purchase of one month of a contract and selling another month in the same contract, in the hope that the price difference will widen or narrow, depending on the investment.
Interest
The amount of money a lender loans a borrower to pay for using the borrower's principal.
Interest coverage ratio
The ratio of earnings before interest and taxes to annual interest expense. This ratio measures a firm's ability to pay interest.
Interest coverage test
A debt limitation that prohibits the issuance of additional long-term debt if the issuer's interest coverage would, as a result of the issue, fall below some specified minimum.
Interest deduction
An interest expense, such as interest on a margin account, that is allowed as a deduction for tax purposes.
Interest during construction
Interest accumulated during construction period, which usually equals capitalized interest.
Interest equalization tax
Tax on foreign investment by residents of the US which was abolished in 1974.
Interest expense
The amount reported by a company or individual as an expense for borrowed money.
Interest in possession
The legal right to receive income from, or occupy, trust property.
Interest on interest
Interest earned on reinvestment of each interest payment on money invested.
Interest only loan
A loan in which payment of principal is deferred and interest payments are the only current obligation.
Interest only mortgage
A mortgage loan where the borrower repays interest only.
Interest only mortgage calculator
A specific calculator to find out the rates and fees that will be paid on an interest only loan to by property.
Interest only strip
A security based solely on the interest payments from a pool of mortgages, Treasury bonds, or other bonds.
Interest payments
Contractual debt payments based on the coupon rate of interest and the principal amount.
Interest rate
The percentage rate at which interest is charged on a loan or paid on savings etc
Interest rate agreement
An agreement whereby one party, for an up-front premium, agrees to compensate the other at specific time periods if a designated interest rate (the reference rate) is different from a predetermined level (the strike rate).
Interest rate cap
An interest rate agreement in which payments are made when the reference rate exceeds the strike rate. Also called an interest rate ceiling.
Interest rate floor
An interest rate agreement in which payments are made when the reference rate falls below the strike rate.
Interest rate futures contract
A futures contract based on an interbank deposit rate or an underlying debt security.
Interest rate on debt
The firm's cost of debt capital.
Interest rate parity line (IRP)
Diagonal line on a graph that characterizes interest rate parity.
Interest rate risk
The chance that a security's value will change due to a change in interest rates.
Interest rate swap
An arrangement in which two parties agree to exchange periodic interest payments, at agreed intervals, over an agreed period, but without any principal being paid.
Interest rates
The cost of borrowing money, expressed as a percentage of the loan per period of time.
Interest sensitive insurance policy
A cash value life insurance policy whose insurance dividend rates vary with respect to inflation, enabling the policyholder to avoid the loss of purchasing power associated with inflation.
Interest sensitive stock
Any stock whose price is extremely sensitive to changes in interest rates.
Interest subsidy
A subsidy, usually government-sponsored, which reduces the interest a borrower is required to pay on a loan.
Interest tax shield
The reduction in income taxes that results from the tax-deductibility of interest payments.
INTERFAITH Credit Union
INTERFAITH is a credit union with head office in EAST ORANGE, NJ
Interference
The negative way of describing governmental action in the economy.
INTERFIPOL
A trustee who is independent of the settlor. Independence is generally defined as not being related to the settlor by blood, through marriage, by adoption or in an employer-employee relationship.
Interfund transactions
Financial arrangements effected by payments made from one fund group (either Federal funds or trust funds) to another group.
Interim
A term which means in the meantime.
Interim bonus
A bonus declared by life companies when maturity of a with profits policy or death of the assured occurs between normal bonus declaration dates.
Interim dividend
The dividend declared before annual earnings are established. Companies in the UK usually pay two dividends per year, the interim dividend and the final dividend.
Interim financing
A short-term loan made to a company on the condition that a takeout will follow with long-term or intermediate financing.
Interim rate of return
The rate of return earned between cash flows.
Interim statement
A financial statement that reflects only a limited period of a company's financial statement, not the entire fiscal year.
Interkalenda, SICAV, S.A.
Interkalenda, SICAV, S.A. is a Spanish company listed at Madrid Stock Exchange. Its business activity is capital investment.
INTERLAKES Credit Union
INTERLAKES is a credit union with head office in MADISON, SD
Interlocking directorate
Describes cross-memberships of directors on each other's company Board of Directors.
Intermap Technologies
Intermap Technologies is one of Canada's largest companies.
Intermarket sector spread
The yield spread between two fixed-income securities in different sectors with the same maturity.
Intermarket spread swaps
An exchange of one bond for another based on the manager's projection of a realignment of spreads between sectors of the bond market.
Intermarket Surveillance Information System (ISIS)
A database that distributes information from all the major stock exchanges in the United States.
Intermarket Trading System (ITS)
An electronic communications network that links nine US markets: the New York (NYSE), American (AMEX), Boston (BSE), Chicago (MSE), Cincinnati (CSE), Pacific (PSE) and Philadelphia (PHLX) stock exchanges, the Chicago Board Options Exchange (CBOE), and the NASD.
Intermediaries
All the people or organizations in the marketing channel between producers and customers.
Intermediate goods
Goods that will be further processed or transformed before being sold to consumers.
Intermediate term
Typically one-ten years.
Intermediate trend
General movement in price data that lasts from three weeks to six months.
Intermediated market
A financial market in which some financial institution stands between counterparties to financial transactions.
Intermediation
Investment through a financial institution.
INTERMIN Resources Limited
INTERMIN Resources Limited is a large Australian company in the field of materials. Their Australian Stock Exchange (ASX) code is IRC.
Intermittency
When a non-linear dynamical system alternates between periodic and chaotic behavior.
INTERMOCO Limited
INTERMOCO Limited is a large Australian company in the field of technology hardware and equipment. Their Australian Stock Exchange (ASX) code is INT.
Intermoney 1, SICAV, S.A.
Intermoney 1, SICAV, S.A. is a Spanish company listed at Madrid Stock Exchange. Its business activity is capital investment.
Internal audit
A control by a company's own accountants, checking for completeness, accuracy and deviations from standard accounting procedures.
Internal auditor
An employee of a company who analyzes the company's accounting records to that the company is following and complying with all regulations.
Internal expansion
Growth of assets resulting from internal financing or internally generated cash flow.
Internal finance
Finance generated within a firm by retained earnings and depreciation.
Internal growth rate
The highest level of growth achievable for a business without obtaining outside financing.
Internal market
The mechanisms for issuing and trading securities within a nation, including its domestic market and foreign market.
Internal measure
The number of days that a firm can finance operations without additional cash income.
Internal rate of return (IRR)
Often used in capital budgeting, it's the interest rate that makes net present value of all cash flow equal zero.
Internal Revenue Code
The various statutes and regulations making up federal tax law.
INTERNAL REVENUE Credit Union
INTERNAL REVENUE is a credit union with head office in NEW ORLEANS, LA
INTERNAL REVENUE EMPLOYEES Credit Union
INTERNAL REVENUE EMPLOYEES is a credit union with head office in GREENSBORO, NC
Internal Revenue Service (IRS)
The US agency responsible for the collection of federal taxes which include personal and corporate income taxes, excise and gift taxes.
Internal Revenue Service Restructuring and Reform Act of 1998
The legislation targeted at IRS reform, particularly related to the time period required for capital gains and tax payer protection and rights.
International Accounting Standards (IAS)
An older set of standards stating how particular types of transactions and other events should be reflected in financial statements.
INTERNATIONAL AIRLINE EMPLOYEES Credit Union
INTERNATIONAL AIRLINE EMPLOYEES is a credit union with head office in ROSEDALE, NY
International All Sports Limited
International All Sports Limited is a large Australian company in the field of consumer services. Their Australian Stock Exchange (ASX) code is IAS.
International arbitrage
Simultaneous buying and selling of foreign securities and ADRs to capture the profit potential created by time, currency, and settlement inconsistencies that vary across international borders.
International Asset Pricing Model (IAPM)
The international version of the CAPM assuming that investors in each country share the same consumption basket and purchasing power parity holds.
International Bank for Reconstruction and Development (IBRD)
An organization that provides loans for economic development to member countries when private funds are unavailable. It was founded at the economic conference held at Bretton Woods in 1944 and began operations in 1946. Also called the World Bank.
International Bank of Commerce
A United States bank with head office in Laredo, Texas.
International Banking Facility (IBF)
In general, these facilities can accept time deposits from foreign customers free of reserve requirements and interest rate limitations, and can lend to foreigners if the funds are for the conduct of foreign business outside of the U.S. Net borrowing from these facilities by domestic banking offices is subject to reserve requirements.
International bonds
A collective term that refers to global bonds, Eurobonds, and foreign bonds.
International Business Company (IBC)
International Fiscal Police. The tax crime counterpart to INTERPOL.
International Chamber of Commerce (ICC)
A business organization with membership from over 80 countries that wants to harmonize trade practices worldwide by establishing agreed upon rules such as Incoterms and Uniform Customs and Procedures for Documentary Credits.
International Commercial Bank Albania
International Commercial Bank Albania is a major Albanian bank.
International Concert Attractions Limited
International Concert Attractions Limited is a large Australian company in the field of media. Their Australian Stock Exchange (ASX) code is ICP.
International Depository Receipt (IDR)
A negotiable, bank-issued certificate representing ownership of stock securities by an investor outside the country of origin.
International Development Association (IDA)
Association established to stimulate country development; it was especially suited for less prosperous nations, since it provided loans at low interest rates.
International diversification
The attempt to reduce risk by investing in more than one nation.
International Equities Corporation Limited.
International Equities Corporation Limited. is a large Australian company in the field of real estate. Their Australian Stock Exchange (ASX) code is IEQ.
International Finance Corporation (IFC)
A corporation owned by the World Bank that produces a number of well-known stock indexes for emerging markets. Its major role is to provide financing for projects in less developed countries.
International Financial and Banking Centre (IFC)
A corporation formed (incorporated) under a Company Act of a tax haven, but not authorized to do business within that country of incorporation; intended to be used for global operations.
International Fisher effect
States that the interest rate differential between two countries should be an unbiased predictor of the future change in the spot rate.
International Fisher relationship
The Fisher equation says the nominal interest rate is the product of one plus the real interest rate times one plus the expected rate of inflation.
International Forest Products
International Forest Products is one of Canada's largest companies.
International fund
A fund whose portfolio comprises a range of securities from markets around the world.
International Goldfields Limited.
International Goldfields Limited. is a large Australian company in the field of materials. Their Australian Stock Exchange (ASX) code is IGL.
International Herald Tribune
International Herald Tribune is an international newspaper.
International market index
An index listed on the American Stock Exchange tracking the performance of 50 American Depository Receipts traded on the AMEX, NYSE, and NASDAQ.
International Minerals
International Minerals is one of Canada's largest companies.
International Monetary Fund (IMF)
An international organization with 146 members, including the United States. The main functions of the International Monetary Fund are to lend funds to member nations to finance temporary balance of payments problems, to facilitate the expansion and balanced growth of international trade, and to promote international monetary cooperation among nations.
International Monetary Fund (the IMF)
Receives quotas from members and lends these, and special drawing rights, to countries with balance of payments problems.
International Monetary Market (IMM)
A division of the CME established in 1972 for trading financial futures.
International monetary system
The global network of government and commercial institutions within which currency exchange rates are determined.
International mutual fund
A mutual fund that invests strictly in securities markets throughout the world, excluding the United States. A global fund, on the other hand, invests in both foreign and domestic securities.
International Organization for Standardization
It's an organization acting as a central clearinghouse for industry standards drafted by national standard setting organizations. The American National Standards Institute is the U.S. representative of ISO.
International Paper
International Paper is a top United States corporation in the field of materials, and its estimated market value is 18,170 million US dollars.
International Petroleum Exchange (IPE)
Europe's leading energy futures and options exchange and the second largest in the world.
International Power
International Power is a top British corporation in the field of utilities, and its estimated market value is 5,080 million US dollars.
INTERNATIONAL RECTIFIER Credit Union
INTERNATIONAL RECTIFIER is a credit union with head office in EL SEGUNDO, CA
International Republican Institute Angola
International Republican Institute Angola is a major Angolan company.
International Security Market Association (ISMA)
Swiss law association located in Zurich that regroups all the participants on the Eurobond primary and secondary markets.
International Steel Group
International Steel Group is a top United States corporation in the field of materials, and its estimated market value is 4,090 million US dollars.
International Stock Exchange of the U.K. and the Republic of Ireland (ISE)
Organization that replaced the London Stock Exchange after its merger with the International Securities Regulatory Organization (ISRO).
International Swap Dealers Association (ISDA)
Formed in 1985 to promote uniform practices in the writing, trading, and settlement of swaps and other derivatives.
International trade
The exchange (buying and selling) of goods and services between different countries.
INTERNATIONAL UAW Credit Union
INTERNATIONAL UAW is a credit union with head office in DETROIT, MI
International Uranium
International Uranium is one of Canada's largest companies.
International Wine Investment Fund (The)
International Wine Investment Fund (The) is a large Australian company in the field of diversified financials. Their Australian Stock Exchange (ASX) code is IWI.
INTERNATIONALITES Credit Union
INTERNATIONALITES is a credit union with head office in CARLSBAD, NM
Internet banking
A facility provided by banks enabling customers to conduct banking transactions through their personal computer and telephone line link via a modem.
InterOil Corp.
InterOil Corp. is one of Canada's largest companies.
Interpolation
A method of approximating a price or yield that is unknown by using numbers that are known.
Interpositioning
An illegal action of a specialist or broker-dealer unnecessarily inserting him-herself into a natural transaction between a buyer and seller in order to pocket an improper profit.
Interpublic Group
Interpublic Group is a top United States corporation in the field of media, and its estimated market value is 5,560 million US dollars.
INTERSEGURO COMPAĆIA DE SEGUROS DE VIDA S.A.
INTERSEGURO COMPAĆIA DE SEGUROS DE VIDA S.A. is an insurance company listed in Peru at Lima stock exchange.
Intersil Corporation
Intersil Corporation is one of the largest American companies in the IT industry. Its NASDAQ code is ISIL.
INTERSTATE Credit Union
INTERSTATE is a credit union with head office in ANAHEIM, CA
INTERSTATE UNLIMITED Credit Union
INTERSTATE UNLIMITED is a credit union with head office in JESUP, GA
Interstig Albania
Interstig Albania is a major Albanian insurance company.
Intertape Polymer Group
Intertape Polymer Group is one of Canada's largest companies.
Intervention
The neutral term to describe governmental action in the economy.
Intestate
The situation which exists when a person dies without making a will. The person is then said to have died intestate.
INTEXT EMPLOYEES Credit Union
INTEXT EMPLOYEES is a credit union with head office in SCRANTON, PA
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Interest rate cap
An interest rate agreement in which payments are made when the reference rate exceeds the strike rate. Also called an interest rate ceiling.
Interest rate floor
An interest rate agreement in which payments are made when the reference rate falls below the strike rate.
Interest rate futures contract
A futures contract based on an interbank deposit rate or an underlying debt security.
Interest rate on debt
The firm's cost of debt capital.
Interest rate parity line (IRP)
Diagonal line on a graph that characterizes interest rate parity.
Interest rate parity theorem
Interest rate risk
The chance that a security's value will change due to a change in interest rates.
Interest rate swap
An arrangement in which two parties agree to exchange periodic interest payments, at agreed intervals, over an agreed period, but without any principal being paid.
Interest rates
The cost of borrowing money, expressed as a percentage of the loan per period of time.
Interest sensitive insurance policy
A cash value life insurance policy whose insurance dividend rates vary with respect to inflation, enabling the policyholder to avoid the loss of purchasing power associated with inflation.
Interest sensitive stock
Any stock whose price is extremely sensitive to changes in interest rates.
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