Ichimoku Cloud - The Ichimoku Cloud is a group of technical indicators that displays momentum and trend direction, as well as levels of support and resistance. This is achieved by taking several averages and charting them. Additionally, it computes a "cloud" using this data in an effort to predict potential future price levels of support and resistance.
Impact investing - A sustainable investment strategy that tries to produce both financial return and quantifiable good social or environmental effect. Activities like affordable housing, education, and healthcare are examples of investment themes.
Implied volatility (IV) - The term implied volatility refers to a measurement that reflects the market's perception of the likelihood of price movements for a certain investment. Using implied volatility, which is frequently used to price options contracts, investors can forecast future movements as well as supply and demand. Implied volatility differs from historical volatility, which gauges prior market moves and their actual outcomes. Historical volatility is sometimes referred to as realized volatility or statistical volatility.
In the money (ITM) - When a call option is said to be in the money (ITM), it means that it has inherent value. An option that is in the money is one that offers a chance to profit since the strike price and the current market price of the underlying asset are in close proximity to one another. A call option that is in the money allows the holder to purchase the securities for less than its current market value. If a put option is in-the-money, it allows the holder to sell the security for a higher price than it is currently trading for. Bear in mind that a trader may not always make money by exercising an option even if it is in the money because of the costs (such commissions) associated with options.
Investment stewardship - Process of working with publicly traded corporations to advance corporate governance principles that support the company's shareholders in generating long-term value. Shareholders have the chance to voice their opinions by participating in voting and engagement.
Income fund - Type of mutual fund or exchange-traded fund (ETF) that prioritizes current income over capital gains or appreciation on a monthly or quarterly basis. These funds often invest in a range of preferred shares, stocks that pay dividends, money market instruments, and debt obligations issued by governments, municipalities, and corporations.
Income stock - A stock that pays significant dividend yield in comparison to other stocks, and consistently and frequently increase its dividends payout. Blue chip or other well-established corporations with stable earnings and a positive financial outlook are frequently the issuers of income stocks. Because there is little incentive to reinvest earnings in a new product, they are able to pay the huge dividends. An income stock's price is strongly influenced by interest rates; as rates rise, income stocks fall in price, and vice versa.
Index - An index measures the overall performance of a specific investment type or category by monitoring the performance of numerous investments. For example, the S&P 500 is frequently used as the standard for investors in large-cap stocks. It monitors the stock performance of 500 major American corporations.
Individual Retirement Account (IRA) - Tax-advantaged savings accounts that can be used for long-term investing and saving. An IRA is intended to encourage people to save for retirement, much as a 401(k) account that an employee receives as a benefit from their employer. Anyone with earned income is eligible to open an IRA and benefit from the tax advantages that these accounts provide. However, unlike a 401(k), anyone can open an IRA without engaging their employer. Individuals can open an IRA That's why they name of individual retirement accounts. A bank, an investing firm, an internet brokerage, or a personal broker are all available options to individuals who want to open an IRA.
Inflation - A decrease of purchasing power, frequently associated with an increase in the cost of goods and services.
Interest rate - The agreed-upon set amount of money that an issuer will give bondholders. Most frequently, it is expressed as a percentage of the bond's face value. One of the market's self-regulating mechanisms, interest rates decline during economic turbulence and increase during expansions.
Initial coin offering (ICO) - Initial coin offerings (ICO) is a financial strategy that a business might utilized to sell a brand-new cryptocurrency as part of a plan to acquire capital. Cryptocurrency is given to investors in return for their financial investments. Initial coin offerings (ICOs) are analogous to initial public offerings (IPOs) in the stock market space.
Initial public offering (IPO) - When shares of a private company are initially made available to the public as part of a new stock issuance, it's known as an initial public offering (IPO). A corporation can raise equity funding from the general public through an IPO. Since current private investors often receive a share premium during the transition from a private to a public business, this might be a crucial period for private investors to completely realize gains from their investment. Additionally, it enables public investors to take part in the sale.
Insider trading - The act of someone trading in a public company's stock who has material, non-public information about that specific company. Depending on the time the insider makes the trade, insider trading may be either legal or not. When the relevant information is still private, insider trading is prohibited and is subject to severe penalties.
Interest-rate risk - The potential for a decrease in a security's value due to an increase in interest rates, particularly a bond.
Investment advisor - A company hired by a mutual fund to provide expert guidance on the fund's asset management and investing strategies.
Intraday trading - Short for within the day, the term refers to securities traded on the markets during regular business hours. Day traders and scalpers who place many trades during a single trading session pay close attention to intraday price changes, as well as the bid-ask spread. When the market ends, intraday traders will close out all of their positions. Because of the limited time available to them, precise entries and exits, as well as the price paid to trade, is essential for the success of their trades.
Intrinsic value - The value of an asset. instead of using the asset's actual market price, this metric is calculated objectively or through the use of a sophisticated financial model.
Inverse ETF - An inverse exchange-traded fund (ETF), also referred to as "short ETF" or "bear ETF" is one that uses different derivatives to profit from a drop in the value of a benchmark index that it is based on. Investing in inverse ETFs is comparable to holding a variety of short positions, which entail borrowing securities, selling them, and then buying them back at a lower price.
Inverse Head and Shoulders - Bullish technical pattern. Opposite to the regular head and shoulders pattern, generally used to forecast beginning of a downtrend, the inverted head and shoulder, also known as a "head and shoulders bottom," is used to forecast the beginning of an uptrend. The pattern displays the following features. First, the price of the security falls though a lateral support line (left shoulder). Next price rises just below that support line (now resistance) to retest it, then falls again to a new low (head). From that point price establishes an oversold and solid base, moves upward toward the test prior lateral resistance line (right shoulder) and breaks above it. From that point on, resistance become support and price continues to climb.
Investment banking - A branch of banking that coordinates massive, intricate financial transactions like mergers or the underwriting of initial public offerings (IPOs). In addition to underwriting the issuing of new securities for a corporation, municipality, or other entity, these banks may raise money for businesses in a number of other ways. They could oversee an organization's initial public offering (IPO). They will offer guidance on reorganizations, mergers, and acquisitions. Investment bankers are professionals who are acutely aware of the state of the markets and investment climates, and assist their customers in navigating the challenging world of high finance.
Investment company - A corporation, trust or partnership that invests pooled shareholder dollars in securities appropriate to the organization's objective. Mutual funds, closed-end funds and unit investment trusts are the three types of investment companies.
Investment grade bonds - A bond that responsible investors would typically consider buying.
Investment objective - The purpose of a mutual fund and its shareholders. Examples of investment objectives included growth, growth and income, income, and tax-free income solutions.
Iron butterfly - An option transaction that employs four separate contracts as part of a plan to profit from movements in the price of stocks or futures that are contained within a predetermined range. In addition, the trade is set up to gain from a drop in implied volatility. Predicting the moment when option prices are anticipated to fall in value generally is the key to using this trade as part of a successful trading plan. This typically happens when there is a slight upward trend or sideways movement.
Iron condor - An advanced option strategy that is popular among traders who want consistent returns without spending too much time preparing and executing trades. It can deliver a high likelihood of return as a neutral position for those who have learned to execute it appropriately. Two credit spreads must be made in order to build an iron condor. A credit spread is formed by selling one option (put or call) and then buying another that is more out of the money. The profit is calculated as the difference between the premiums collected for the sold option and the cost of the purchased option. When the options expire, this profit is achieved by either purchasing back the position for a profit or keeping the entire premium.