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moneygirl Glossary ~ IJ

Submitted by on January 14, 2011 – 7:18 pmNo Comment

The IJ’s of Money

IMF (The International Monetary Fund): An organization founded in 1944 to oversee exchange arrangements of member countries and to lend foreign currency reserves to members with short-term financial problems.

IPO (Initial Public Offering): A company’s first sale of stock to the public.

Import quota: Limits on the quantity of certain products that can be legally imported into a particular country during a particular time frame.

Income dividend: An interest or dividend payout to holders of mutual funds.

Income fund: A mutual fund that provides income from investments.

Income property: Real estate purchased to generate income.

Income statement (statement of operations): An accounting statement showing revenues, expenses and income (the difference between revenues and expenses) of a company .

Income tax: Government’s levy on an individual as personal tax, and on a company as corporate tax.

Indemnify: A term often used in insurance policies meaning to hold harmless.

Index: A statistical measurement showing changes in the financial markets, or economy generally.

Inflation: The rate at which the general level of prices for goods and services is rising.

Insider information: Information about a company that has not yet been made public. It is illegal for anyone with knowledge of the information to trade stocks or to benefit from the knowledge.

Insolvent: An individual or company unable to pay debts (its liabilities exceed its assets).

Institutional broker: A broker who buys and sells securities for institutional investors such as banks, mutual funds and pensions.

Insurance: To guard against damage to property, or loss of property, payments are made to an insurance company (called premiums), which pays out an agreed-upon sum to the insured in the event of a loss.

Insurance agent: Someone who sells insurance.

Interest: The price of borrowing money – a percentage paid over a period of time.

Interest rate: The monthly effective interest rate – (i.e. a credit card with an annual rate of 18%, is 1.5% per month).

Inventory: For companies – items available for sale, or in the process of being made ready for sale.

Investment: The creation of more money through the use of capital.

Investor: The owner of an asset.

Invoice: A bill written by the seller of goods or services and submitted to the purchaser for payment.

Issuer: A company that puts a financial asset on the market.

Joint account: An account owned jointly by two or more persons.

Joint Venture: An agreement between two or more firms to undertake the same business strategy.

Junk bond: a bond with a speculative credit rating of BB or lower (for comparison, a rating of AAA is excellent).

Just-in-time inventory systems: Systems that schedule materials to arrive exactly when they are needed.

Justified price: Fair market price of an asset.

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