← All Glossary I-Bond (Series I Savings Bond) A US government savings bond earning interest based on a fixed rate plus a semiannual inflation rate, protecting purchasing power against inflation. Immunization A bond portfolio strategy designed to shield against interest rate risk by matching the duration of assets with the investor's liability horizon. Implied Volatility (IV) The market's forecast of a likely movement in an asset's price, derived from option prices and expressed as annualized percentage, reflecting expected future volatility. Index A statistical measure tracking the performance of a group of assets representing a market segment, such as the S&P 500 for large-cap US stocks. Index Fund A passive investment fund designed to replicate the performance of a specific market index by holding the same securities in the same proportions. Inflation The rate at which the general level of prices for goods and services rises over time, eroding purchasing power and a critical factor in long-term investment planning. Inherited IRA An individual retirement account inherited from the original owner, subject to specific distribution rules depending on the beneficiary's relationship to the deceased. Initial Public Offering (IPO) The first sale of a company's shares to the public on a stock exchange, allowing the company to raise capital from public investors. Insider Trading The illegal practice of trading a public company's stock based on material, non-public information, violating securities laws and fiduciary duties. Intrinsic Value The perceived true or inherent worth of an asset based on fundamental analysis, independent of its current market price, used in value investing. Investment Adviser A professional or firm that provides advice about securities for compensation, subject to fiduciary duty under the Investment Advisers Act of 1940 to act in clients' best interests. Investment Company A corporation or trust that pools investor funds to invest in securities, including mutual funds, closed-end funds, exchange-traded funds, and unit investment trusts. Investment Grade A credit rating indicating a bond has a relatively low risk of default, rated BBB- or higher by S&P and Baa3 or higher by Moody's. IRA (Individual Retirement Account) A tax-advantaged retirement savings account allowing individuals to contribute earned income and invest in a range of securities with tax-deferred or tax-free growth. Iron Condor An options strategy combining a bear call spread and a bull put spread, profiting from low volatility when the underlying asset stays within a defined price range. IRR (Internal Rate of Return) A discount rate making the net present value of all cash flows from an investment equal to zero, used to evaluate the profitability of potential investments. Issuer A legal entity that develops, registers, and sells securities — such as stocks or bonds — to raise capital, with ongoing disclosure obligations to security holders.
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