Illliquid Capital For Income Needs
For purposes of the premature death analysis. Refers to any assets that are not assumed to be liquidated at the death of a principal client, but are assumed to be available for future survivor goal and income needs.

Immediate-or-Cancel (IOC)
An instruction on an order that requires execution of as many lots as can be filled immediately, and the rest canceled.

In-The-Money
Used to describe options that the holder would profit from exercising. Call options are in-the-money when the underlying security's value is greater than the option's strike price. Put options are in-the-money when the underlying security's value is less than the option's strike price.

Inception Date
The date a fund was first made available to investors.

Income
Payments of dividends, interest, and/or short term capital gains earned by securities held by a fund. Income dividends are paid after deducting operating expenses.

Income Bonds
Bonds issued when the ability of the issuing company to pay interest is questioned. They are speculative instruments that pay high rates of interest.

Income Fund
A fund that invests primarily in fixed income securities and/or high-yielding stocks. In general, income funds seek to provide current income rather than growth of capital.

Income Stream
A strategy of arranging bonds so that they produce a consistent series of payments.

Indemnity
1). In the case of damages or losses suffered by a party, an indemnity is the assurance that the situation will be rectified by another party by way of repair or monetary payments. That other party is mostly an insurance company in which the policyholder who has suffered damages has indemnity insurance. 2). A guarantee by a client to their bank (usually in the form of a 'letter of indemnity') that the bank will not be held liable for continuing to serve the interests of that client as a result of the client's loss of documents.

Indenture
The terms of a corporate bond. Also known as deed of trust, it appears on the face of the bond certificate.

Independant Taxation
A system of personal taxation introduced in the UK in 1990-91 where a husband and wife are treated as completely separate and independent taxpayers for both income tax and capital-gains tax as though each was single, but with a new married person's allowance for when one party has no income.

Index
Indicators used to provide a point of reference for evaluating a fund's performance. The most common indices for stock funds are the Dow Jones Industrial Average and the S&P 500 Index. For fixed-income funds it is the Lehman Brothers Aggregate Bond Index.

Index Fund
A fund that invests in a collection of securities intended to match that of a broad-based index (NOTE: It is not possible for investors to actually invest in the actual index, such as the S&P 500). In general, index funds seek the same or a slightly better return that the index they mirror. Index funds tend to charge low administrative expenses.

Individual Retirement Account (IRA)
A personal savings plan that offers tax advantages to save and invest for retirement. Contributions are often tax deductible in whole or in part, depending upon individual circumstances, including compensation levels and participation in an employer sponsored qualified retirement plan. Income derived from investments in a traditional deductible or nondeductible IRA are tax deferred until withdrawn. Under certain circumstances, withdrawals from a Roth IRA are tax free. Tax penalties may apply to IRA distributions taken before age 59 1/2. Contributions to an IRA may not exceed $2,000 per year. Individuals with earned income may contribute up to $2,000 to the IRA of a nonemployed spouse.

Industrial Revenue Bond
(ID Revenue, ID Revs, or Industrial Rev) A form of municipal bond whose issuer's ability to pay interest and principal is based on revenue earned from an industrial complex.

Inflation
An increase in the prices of products and services over time, representing the decreased purchasing power of money.

Inflation Adjusted
The value of income or an asset that is measured in terms of purchasing power.

Inflation Risk
The possibility that the value of assets or income will be eroded by inflation (the rising cost of goods and services). Inflation risk is often mentioned in relation to conservative fixed income funds. While these types of fixed income funds may minimize the possibility of losing principal, they expose an investor to inflation risk.

Insider
Person with nonpublic information on a corporation. Directors, officers and stockholders owning more than 10% of any one class of stock are usually considered insiders.

Insider Dealing
The purchase or sale of shares by someone who possesses "inside" information about the company; i.e., information on the company's performance and prospects which has not yet been made available to the market as a whole and which, if available, might affect the share price.

Insured Bond
A guarantee on a municipal bond that interest and principal will be paid timely and in full. Insured bonds tend to carry a high credit rating but to pay a lower return than comparably rated uninsured bonds. The largest municipal bond insurers include: The Municipal Bond Investment Assurance Corp. (MBIA), Federal Guarantee Insurance Corp. (FGIC), and AMBAC Indemnity Corp. (AMBAC).

Interest
The cost of borrowing money.

Interest Rate Risk
The risk created by changes in market interest rates. For example, the value of bonds usually falls when interest rates rise. See Investment risk.

Interim Dividend
A dividend declared part way through a company's financial year, authorized solely by the directors.

Intermediate Care
Occasional nursing care that must be performed by or under the direct supervision of skilled medical personnel. This type of care is not as intensive as skilled nursing care, but is more intensive than custodial care.

Intermediate Investment Grade Bond Fund
A fund that invests primarily in investment grade fixed income securities with dollar-weighted average maturities of five to ten years.

Intermediate U.S. Government Fund
A fund that invests primarily in government guaranteed fixed income securities with a dollar-weighted average maturity of five to ten years.

Intermediate U.S. Treasury Fund
A fund that invests primarily in U.S. Treasury bills, notes and bonds with a dollar-weighted average maturity of five to ten years.

Intermediate-Term Bonds
Those maturing five to ten years after original issue.

International Fund
A fund that invests primarily in the securities of companies located outside of the United States. In general, international investing not only offers diversification and the potential for high returns, but also involves special risks, such as currency concerns, and rapidly changing political scenarios.

Intestate
To die without a valid will.

Investment Assets
Assets that are intended to achieve long-term objectives, such as accumulating money for education or retirement. Investment assets generally include stocks, bonds, mutual funds, annuities, certificates of deposit, real estate, limited partnerships, business interests and similar long-term investments.

Investment Banker
See underwriter.

Investment Company
An investment company invests the pooled funds of investors in securities appropriate for its stated investment objectives. For a fee, the investment company provides more diversification, liquidity, and professional management service than is normally available to individual investors.

Investment Grade
High quality bonds that are rated Baa or higher by Moody's, or BBB or higher by Standard & Poor's. Investment grade bonds are considered safe, because the rating reflects the perceived financial stability of the issuer. Usually, however, the higher the bond's rating, the lower the interest it must pay to attract buyers.

Investment Income
Income from investments such as interest and dividends.

Investment Objective
A fund's investment goal. For example, a growth fund typically has an investment objective of providing long-term growth of capital.

Investment Risk
The unpredictability of investment returns. The chance that the actual return from an investment will be different from its expected return. Investment risk is measured statistically using standard deviation. Investment risks include economic risk, inflation risk, interest rate risk, market risk and specific risk.

Investment Style
A description of a fund's investment strategy. For example, a growth fund might have a growth oriented style, a value-oriented style, or a blend of the two. Fixed-income funds tend to be managed with either an interest-rate sensitive style or a credit-sensitive style.

Investment Trust
Company whose sole business consists of buying, selling and holding shares.

Issue
(1) The process by which a new security is brought to market. (2) Any security.

Issue Date
Month and day that a security is initially issued.

Issued Stock
Stock sold to the public.

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