Your Free Online Legal Dictionary • Featuring Black’s Law Dictionary, 2nd Ed.

Category: I

INDICATION OF INTEREST (IOI)

When an investor shows interest in new securities. It is nonbinding because the securities are not yet registered. Refer to the defenition of circle.

INSURABLE RISK

A risk that causes loss that can be covered by the premium paid. Refer to uninsurable risk.

INDICATIVE QUOTE

An offer given to a dealer that is uncertain. It is used as a guideline for future business offers.

INTENSITY MODEL

When a company estimates failure rate to predict default. Structural or markto market models are ways to do this.

INTERPOSITIONING

The act of adding a middle man simply to boost commissions. Refer to affirmative and negative obligation.

INCUBATOR

A firm offering a start up seed as venture capital. Also called accelerator

INELASTIC

The proportionate change between variables. Also called elastic or elasticity.

INTEREST COVERAGE

The way a company sees how it can manage its debt. This is also referred to as debt service coverage.

IN-THE-MONEY

When an underlying asset is worth more. Refer to atthemoney, moneyness, or out of the money.

INCURRED LOSS

A loss that occured already that hasnt yet been paid. Also see ratio.

INFLATION

When currency loses its value due to constantly raising prices.

INTEREST RATE

The cost of borrowing funds or the capital earned on loaned funds.

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