In the context of corporate finance, the absence of cash flow needed to fulfill financial debts and meet obligations. In the context of investments, describes a thinly traded investment such as a stock or bond that is not easily converted into cash. Illiquid securities have high transactions costs. Often the bid-ask spread is very wide.

Imbalance of Orders

Used for listed equity securities. Too many market orders of one kind-buy or to sell or limit orders to buy up or sell down, without matching orders of the opposite kind. An imbalance usually follows a dramatic event such as a takeover, research recommendation, or death of a key executive, or a government ruling that will significantly affect the company's business. If it occurs before the stock exchange opens, trading in the stock is delayed. If it occurs during the trading day, the specialist halts and then suspends trading (with floor governor's approval) until enough matching orders can be found to make an orderly market.


Process that occurs when the central depository vaults share certificates and converts them into book based positions.

Income Fund

A mutual fund that seeks to provide to liberal current income from investments.

Income Statement 

A report on a company's financial status describing revenues and expenses over a specific period of time. 

Income Stock

Common stock with a high dividend yield and few profitable investment opportunities.


Statistical composite that measures changes in the economy or in financial markets, often expressed in percentage changes from a base year or from the previous month. Indexes measure the ups and downs of stock, bond, and some commodities markets, in terms of market prices and weighting of companies in the index.

Indicative Equilibrium Price (IEP)

The equilibrium price between offered and demanded quantities, which is calculated by the ASE trading system.


General term used in the financial markets to refer to companies manufacturing, producing, or distributing goods and services.

Investment Manager

A professional responsible for managing the investments of institutional and individual clients.


An increase in the prices for goods and services in a particular country.

Initial Public Offering (IPO) 

A corporation's first offering of stock to the public.

Initiate Coverage

Indication to cover short position by purchasing the underlying stock (this cancels out the short position).

Insider Information

Material information about a company that has not yet been made public. It is illegal for holders of this information to make trades based on it, however received.

Insider Trading

The practice of buying and selling a company's stock by that company's management or board of directors, or by a holder of more than 10% of the company's shares.

Insolvent A person not able to pay his or her debts as they become due.

Institutional Investor 

An institution that invests its own assets or the assets of other large institutions, such as foundations. The institutional investor category includes pension funds, investment companies, insurance companies, and banks.

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.


The cost of borrowing, represented as a percentage of the amount borrowed.

Intrinsic Value

A valuation determined by applying data inputs to a valuation model. The value is comparable to the prevailing market price.

Investment Fund

An established fund which pools funds from investors in order to purchase a wide variety of financial instruments that will meet the fund's investment goals.


The owner of an asset.

IOSCO (International Organization of Securities Commissions) 

An international organization of securities exchange regulators who set guiding principles for the world's capital markets.


International Securities Identification Number - A twelve-digit number used as an internationally recognized numbering system for securities identification.

ISO(The International Organization for Standardization)

a non-governmental organization established in 1947 to promote the development of standardization and related activities in the world with a view to facilitating the international exchange of goods and services, and to developing cooperation in the spheres of intellectual, scientific, technological and economic activity.


A particular financial asset.


Corporation that originates securities in the primary market for the purpose of raising capital.