Growth Investing Stock Market Glossary
From A for ‘Asset’ to Z for the ‘Zero-Coupon Yield Curve’ — your comprehensive guide to everything that matters in the markets.
IBAN
International account number for the unique identification of bank accounts for payment processing.
IBOR transition
Replacement of old reference interest rates like LIBOR with risk-free rates like SOFR or €STR.
Ichimoku
Chart technique system with line set for quick trend, momentum, and support assessment.
ICO (Initial Coin Offering)
Token sale for project financing in the crypto sector.
IDO (Initial DEX Offering)
Token initial offering via a decentralized exchange.
IEO (Initial Exchange Offering)
Token initial offering through a centralized crypto exchange.
Ifo Business Climate
Mood indicator of the German economy based on company surveys.
IFRS (International Financial Reporting Standards)
International framework for financial reporting and disclosure.
IG-Spread (Investment-Grade-Spread)
Yield spread of high-quality corporate bonds over government bonds.
Illiquid Market
Market with low liquidity and wide spreads.
Illiquidity
Restricted tradability with wide spreads and higher execution risk.
Illiquidity premium
Additional return requirement for illiquid investments.
Illusion Of Control
Distortion in which investors overestimate their influence on random events.
Impact Investing
Investment approach with financial returns and measurable social-ecological benefits.
Impairment-Test
Validation of assets and goodwill under IFRS/IAS.
Implicit correlation
Derived expectation for the correlation of underlying assets from option prices.
Implicit volatility (IV)
Expected market volatility, inferred from option prices.
In The Money
Option status with positive intrinsic value.
Income approach
Valuation method that derives the company's value from future expected earnings.
Income before taxes (EBT)
Result of a company before taxes as a performance indicator.
Income Statement (GuV)
Part of the financial statement showing revenues, expenses, and results.
Income statement account
Accounting account for the income-effective recording of revenues and expenses.
Independent Variable
Explanatory variable in regression and forecasting models for returns or key figures.
Index
Rule-based security basket measure for representing a market or theme.
Index derivative
Derived financial instrument on an index such as futures or options.
Index funds
Funds with passive, index-tracking replication.
Index providers
Institution responsible for the methodology, calculation, and maintenance of an index.
Index weighting
Allocation of index shares based on market capitalization, factors, or rules.
Indexarbitrage
Exploiting price differences between index, futures, and components.
Indexfuture
Standardized futures contract on a stock or bond index.
Indexing
Linking of payments or prices to a reference index.
Indication
Unverbindlicher Vorabpreis eines Wertpapiers vor offizieller Kursfeststellung.
Industrieproduktion
Output indicator of the industry as part of economic diagnosis.
Inflation
Persistent general price increase with loss of purchasing power.
Inflation expectations
Derived inflation assumptions for the future from the market or surveys.
Inflation hedge concept
Framework for results-oriented risk and volatility management.
Inflation protection
Protection against loss of purchasing power through suitable investments or derivatives.
Inflation rate
Percentage price increase of a shopping cart per period.
Inflation risk
Risk of real yield reduction due to rising prices.
Inflation swap
Exchange fixed for inflation-linked payments for hedging or speculation.
Inflation-adjusted yield
Real yield after deduction of the inflation rate.
Inflation-indexed bond (linker)
Debt security with coupon/face value linked to a price index.
Inflation-Linked Fund
Funds with mechanisms to limit losses and target volatility.
Inflationsbreakeven
Derived inflation expectation from market prices based on nominal and real yields.
Information Ratio
Key figure from surplus return to tracking error volatility.
Informationsasymmetrie
Unequal distribution of relevant information among market participants.
Initial Margin (Ersteinschuss)
Initial margining for derivative positions.
Initial Public Offering (IPO)
Initial public offering (IPO) or direct listing of a company for the first time.
Innerer Wert (Intrinsic Value)
Fundamental determined value of an asset or option intrinsic value.
Input text is valid German.
Output translation:
`Input tax ratio`
Relationship of taxes to pre-tax income or proportion of amounts eligible for input tax deduction.
Insider list
Directory of individuals with access to insider information in accordance with MAR.
Insider trading
Trading with price-sensitive, non-public information.
Insider transactions
Reportable purchases/sales by members of the board and related persons.
Insolvency
Inability to meet due obligations is a common reason for insolvency.
Insolvency application
Legal request for the initiation of insolvency proceedings.
Insolvency rate
Repayment share of creditor claims after completion of a procedure.
Insurance mathematics
Quantitative evaluation of insurance risks, premiums, and reserves.
Insurance premium
Price for the assumption of an insurance risk by the insurer.
Insurance provisions
Balance sheet items to cover future insurance benefits.
Insurance risk
Risk from frequency of damage, severity of damage, and reservation uncertainty in insurers.
Interbank market
Money market for credit and deposit transactions between banks.
Interest barrier (tax law)
Limitation of the deductibility of interest expenses in corporate tax law.
Interest Coverage Ratio (ICR)
Ratio of operating income to interest expense.
Interest Differential
Difference between two interest rates as a driver of carry and FX forward rates.
Interest payment
Actual coupon or interest credit to creditors.
Interest payment profile
Temporal structure of interest payments of an instrument or portfolio.
Interest rate differential transaction (Carry Trade)
Financing in low-interest currency for investment in high-interest currency.
Interest Rate Parity (IRP)
Relationship between exchange rates and interest rate differentials in spot and forward markets.
Interest rate parity, covered (CIP)
Arbitrage condition that links the forward and spot exchange rates via interest rate differentials.
Interest rate risk
Risk from price and yield changes due to moving market interest rates.
Interest rate spread
Surcharge on a reference interest rate as a price for credit or liquidity risks.
Interest Rate Supplementary Reserve (ZZR)
Insurance provision to secure long-term guaranteed interest rates.
Interest Rate Swap (IRS)
Exchange fixed for variable interest payments.
Interest Rate Term Structure Model (Nelson-Siegel/Svensson)
Parametric description of yield curves for valuation and risk.
Interest surplus
Difference between interest income and interest expenses, key central bank metric.
Interest-bearing liabilities
Financial debts that are associated with ongoing interest payments.
Interim dividend
Zwischenausschüttung innerhalb des Geschäftsjahres.
Interim financial statement
Interim financial statements such as semi-annual or quarterly reports.
Interim profit (fund)
Income portion in the share price that has accumulated between distributions.
Interim report
Periodic report between annual financial statements with key figures and outlook.
Intermarket analysis
Comparison of asset classes to identify leading and lagging trends.
Internal Rate Of Return (IRR)
Discount rate that sets the net present value of a series of payments to zero.
Internal Rate of Return (IRR)
Money-weighted return measurement taking into account inflows and outflows.
International Accounting Standards (IAS)
Predecessor standards to IFRS with still valid individual standards.
International Monetary Fund (IMF)
International institution for financial stability and crisis assistance.
Intraday
Trading and price movement within a single trading day.
Inventory turnover
Key figure for inventory turnover as a measure of capital commitment efficiency.
Inventory turnover ratio
Number of inventory turnovers per year as an efficiency and capital commitment indicator.
Inverse ETF
Product with the aim of replicating the opposite daily performance of an index.
Inverse yield curve
Yield curve with higher short-term than long-term interest rates.
Investment appraisal
Procedure for evaluating and selecting investment projects.
Investment bank
Institute for Emission, Trading, Consulting, and Capital Market Structuring.
Investment committee
Committee that oversees investment strategy, limits, and key investment decisions.
Investment Committee
Committee for deciding on strategy, limits, and key investments.
Investment funds
Assets that are collectively invested in securities and traded as fund shares.
Investment Grade (IG)
Bonitätssegment mit Ratings ab BBB-/Baa3.
Investment horizon
Planned period during which an investment is to be held.
Investment ratio
Share of investments in revenue or cash flow.
Investment style
Systematic investment approach such as Growth, Value, or Quality.
Investment Tax Act (InvStG)
German Law on the Taxation of Investment Funds and Investors.
Investment theme
Cross-cutting investment themes such as decarbonization or digitalization.
Investment Trust
Closed-end fund that is traded on the stock exchange.
Investment universe
Amount of permissible assets according to mandate or strategy.
Investment volume
Total amount of planned or made investments.
Investor Relations (IR)
Business function for transparent capital market communication.
Investor type
Classification of an investor based on risk appetite, goals, and experience to derive suitable strategies.
IOI (Indication Of Interest)
Non-binding expression of interest in the issuance or placement process.
IPO (Initial Public Offering)
The initial placement of a company's shares on a stock exchange for capital raising and tradability.
IPO (Initial Public Offering)
Initial public offering with stock exchange listing.
IPO (Initial Public Offering)
Initial or additional placement of securities on the primary market for capital raising.
Irrevocable credit line
Firmly committed credit facility that can only be terminated by the bank to a limited extent.
ISDA Master Agreement
Standard contract for OTC derivatives with rules on collateralization and settlement.
ISIN
International securities identification code for the unique identification of a security.
ISIN (International Securities Identification Number)
German identification code for securities as an alternative to ISIN.
ISM Manufacturing Index (PMI)
US Purchasing Managers' Index of the Institute for Supply Management.
Issue
Placement of new securities on the primary market to raise capital.
Issue price
Issue price of a newly issued security.
Issuer
Issuer, who issues securities and assumes contractual obligations.
Issuer Rating
Issuer credit rating based on business and financial profile.
IV Percentile
Ranking of current implied volatility in historical comparison.
IV Rank
Ratio of current implied volatility to the range of the last period.
