Glossary of Terms

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There are currently 15 names in this directory beginning with the letter I.
A security is said to be illiquid if it cannot be converted into cash quickly or near prevailing market prices. Illiquid securities cannot be sold quickly without a substantial fall in price due to the absence of a ready market for the security. Illiquid securities therefore carry higher risks than liquid securities.
A rise in the general level of prices of goods and services in an economy over a period of time.
Initial Public Offering (IPO)
Initial Public Offering (IPO) is also referred to as an "offering" or "flotation." It relates to the first sale of shares in a company. They are often issued by smaller, younger companies seeking capital to expand, but can also be done by large privately-owned companies looking to become publicly traded.
Insider trading
The trading of a corporation’s shares or other securities on the basis of non-public and price sensitive information
Institutional Investor
An organisation which pools large sums of money and invests those sums in securities, real property and other investment assets. Types of institutional investors include banks, investment companies, mutual funds, insurance companies and pension funds.
The price paid for borrowing money. Alternatively, interest can be viewed as the compensation to lenders for the use of their funds. It is expressed as a percentage of the amount owed to the lender. Interest rates are typically calculated on an annual basis.
International Organization of Securities Commissions (IOSCO)
The International Organisation of Securities Commissions (IOSCO), is the recognized international standard setter for securities markets. This Organization's membership regulates more than 90% of the world's securities markets and is the world's most important international cooperative forum for securities regulatory agencies.
A security that is purchased with the hope that it will generate income or appreciate in the future. This return may take the form of interest or capital gains.
Investment Advice
Advice with respect to an investment in, or the purchase, sale or holding of, a security.
Investment Adviser
A person engaging in, or holding himself out as engaging in, the business of providing investment advice, and includes a person that provides investment advice to a manager of a collective investment scheme.
Investment Goal
This describes an objective or target which arises from some specific future financial need. Some common investment goals are saving for retirement, providing for your children's education or saving for a major purchase such as a home. Determining your investment goals is the first step in the investment planning process. The second step involves determining how much you need to set aside to invest as well as the appropriate mix of investments that will enable you to achieve your financial goals. These in turn will depend on a number of factors such as your investment time horizon, your income and expenses as well as your risk tolerance.
Investment Policy Statement (IPS)
A document between an investor and portfolio manager that clearly lays out the terms and objectives with regard to the management of the investor’s money.
A person or organization that invests money in order to make a profit.
Investor Education Program
A programme conducted by regulators such as the TTSEC to provide investor education information to the general public.
A person that has securities outstanding or issues, or proposes to issue or distribute a security.

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