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I-Bonds
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Inflation indexed savings bonds issued by
the U.S. Treasury with a 30-year maturity that offer special tax benefits
because they are exempt from state and local income taxes.
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In-the-Money
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For a call option in options trading; the
stock price is greater than the strike price. For a put option, the stock
price is less than the strike price.
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Index
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Statistical composite that measures changes
in financial markets. Indicies measure the ups and downs of stock, bond and
commodities markets. Some well-known indicies are the Dow Jones Industrial Average,
the NYSE Composite, and the S&P 500 Index.
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Index Options
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An option contract on an index.
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Individual Retirement Account (IRA)
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Personal, tax-deferred, retirement account
that an employed person can set up with a deposit limited to $3,000.00 per year,
through 2004. Contributions for 2005 to 2007 increase to $4,000.00 and
contributions from 2008 and beyond will increase to $5,000.00 according to
recent IRA legislation. Catch-up contributions are also available for IRA
holders 50 and older. These individuals may contribute an additional
$500.00 for years 2002 through 2005 and $1,000.00 for years 2006 and
beyond.
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Industrial Development Bond
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Bond issued to finance fixed assets that are
then leased to private firms, whose payments amortize the debt.
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Inflation Risk
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Chance that the value of assets or of income
will be eroded by inflation as it shrinks the value of a country's
currency.
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Initial Call
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Also known as a fed call, a request for additional
funds after a purchase. An initial call must be met with cleared funds or
by depositing marginable stock. Stock cannot be sold to cover an initial
call. See Regulation T.
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Initial Public Offering (IPO)
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Corporation's first offering of stock to the
public.
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Interest
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Cost of using money, expressed as a rate per
period of time, usually one year.
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Interest Rate
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Rate of interest charged for the use of
money, usually expressed at an annual rate. The rate is derived by dividing
the amount of interest by the amount of principal borrowed.
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Interest Rate Risk
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Risk that changes in interest rates will
adversely affect the value of an investor's securities.
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InterNotes
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Investment grade corporate notes, designed
for individual investors.
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Intrinsic Value
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The difference between the strike price and
the stock price in options trading.
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Investment Grade
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Bond with a credit rating of AAA to BBB.
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