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

Category: I

INSIDER SYSTEM

A corporation controlled by a family. Refer to outsider system.

INDEX TRIGGER

An event that suspends coupon interest and principal when losses meet an agreed upon amount. Also called an indemnity or parametric trigger.

INSIDER TRADING

Where private information is used to create more profit. Sometimes this is considered a crime and punished. Refer to gun jumping.

INDEXING

An investment strategy that tries to predict the future perfromance of an asset with minimum error. This is also called an active investment strategy or an index fund.

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.

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