Equities & Finance Glossary – Terms Starting with I

 

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Finance & Equities Definitions A-ZA, B, C, D, E, F, G, H, I, J, K, L, M, N, O, P, Q, R, S, T, U, V, W, X, Y, Z

 

Terms Starting with I

 

Inbound Trend Duration

The length, in days, of the trend leading into a classic or short-term pattern. The height of an inbound trend indicates the possible price move away from the breakout price of the event. The breakout price depends on the pattern's definition.

 

The slope of an inbound trend indicates the strength of an event. A very strongly sloped inbound trend (large height, short duration) is a stronger indicator of a reversal than a shallow inbound trend (small height, long duration).

 

Inception Date

The date on which an investment product, like a mutual fund or an Exchange Traded Fund (ETF), commenced operations.

 

Income/Distributions

For tax purposes, an investment product, like a mutual fund or an Exchange Traded Fund (ETF), generally passes along dividends and interest it receives from securities it owns. Additionally, a mutual fund and an ETF passes along your share of the profits it makes when it sells securities for a higher price than it paid for them. Distributions are subject to federal tax, and may also be subject to state or local taxes. Your distributions are taxable when they are paid, whether you take them in cash or reinvest them.

 

Independent Expert Strategies

Independent expert stock search strategies have been developed for Fidelity.com by third-party professionals such as Argus Research, SmartMoney.com, and Standard & Poor's Market Research. You can use expert search strategies to find stocks that match the predefined criteria, or you can use them as jumping off points for creating your own search strategy. See Independent Expert Search Strategies for complete details.

 

Independent Firms

Independent firms are firms who derive no financial benefit from their recommendations.

 

For the purposes of performance evaluation, Investars defines independent research as research produced by a firm that has no conflicts of interest in the following areas:

 

Investment banking, where the research firm has investment banking operations or has had investment banking transactions within the past year

Paid-for-research, where the research firm is paid by the covered company to issue research

 

Research firms are also designated as independent if they have been selected to provide independent research to investors under the terms of the Global Research Analyst Settlement. In all cases, research firms must contact Investars and request that they be identified as independent, and they must agree to forward data to Investars directly. To determine whether a firm qualifies as independents, Investars reviews the firm on a quarterly basis, or when the firm begins to forward data to Investars.

 

Investars provides this service for the convenience of its clients only. Investors should conduct their own due-diligence to determine whether the research provided to them presents any conflicts of interest. Investors should also understand that identifying a firm as independent does not suggest that that firm provides good research. The quality of the research provided and how each firm resolves potential conflicts of interest is best evidenced in the firm’s track record.

 

Index

One of the following major stock market indexes:

 

S&P 500 (.SPX) - Standard & Poor's 500

DJIA (.DJI) - Dow Jones Industrial Average

NASDAQ (.IXIC) - NASDAQ Composite Index

Russell 2000 (.RUT) - Russell 2000 Index

Technology (.XCI) - AMEX Computer Technology Index

Internet (.IIX) - AMEX Internet Index

Broker/Dealers (.XBD) - AMEX Securities Broker/Dealer

Oil & Gas (.XIO) - AMEX Oil Index

Gold & Silver (.XAU) - Phlx Gold Silver Index

Utilities (.DJU) - Dow Jones Utilities Average

Transportation (.DJT) - Dow Jones Transportation Average

Airlines (.XAL) - AMEX Airlines Index

On a chart, you can compare a symbol's relative price performance with an index's performance.

 

Index Funds

A passively managed fund designed to replicate the performance of an unmanaged stock or bond index.

 

Indicator Pattern

The pattern created by indicators, which are based on moving average calculations showing the average value of a security's price over a period of time. Indicator Patterns include Double Moving Average Crossover, Price Crosses Moving Average, and Triple Moving Average Crossover. Moving averages are lagging indicators because they use historical information.

 

Industry Average

An average of all stock data values in the same industry. Industry Average is used to compare a stock’s Valuation, Growth, and Profitability ratios to that of other stocks in the same industry.

 

Insider Gain/Loss

On the Insider Activity chart, the Insider Gain/Loss statistic is based on the return generated during the period shown by a portfolio consisting of long positions in the stock corresponding to each purchase, and short positions for each sale.

 

Insider Timing Grade

On the Insider Activity chart, the Insider Timing Grade is calculated by testing the statistical significance of the timing of the insiders' trades. A grade of A means that if the same trades were made with random timing, there would be no more than a 5% chance of exceeding the insiders' return.

 

Interest

The amount paid by a borrower as compensation for the use of borrowed money. This amount is generally expressed as an annual percentage of the principal amount.

 

Interest Coverage

Net earnings before interest and taxes (EBIT) of one period divided by interest expenses on bonds and other contractual long-term debt for the same period.

 

The lower the ratio, the more the company is burdened by debt expense. When a company's Interest Coverage ratio is 1.5 or lower, its ability to meet interest expenses may be questionable. An Interest Coverage ratio below 1 indicates the company is not generating sufficient revenues to satisfy interest expenses.

 

Interest Rate

The annual rate, expressed as a percentage of principal, payable for use of borrowed money.

 

Inventory

Merchandise bought for resale, and materials and supplies purchased to generate more revenues through sale.

 

Inventory Turnover

Cost of goods sold for a specified time period divided by average inventory. Average inventory is the average of the inventory at the beginning and end of the year. Inventory turnover measures how quickly a company's inventory of goods is sold. Time periods measured include:

 

Most Recent Quarter (MRQ) as an annualized figure

Trailing Twelve Months (TTM)

Most Recent Fiscal Year

 

Investars

Investars was founded in 1999 to provide investors with the tools to measure the value of research. Investars is owned and operated by Netologic Inc. a privately held company. Fidelity uses stock recommendations (buy to sell) collected and normalized by Investars, as well as analyst recommendation returns in the Research area of Fidelity.com.

 

Investment Category

Groupings of investment products based on investment category. Generally, investment categories often include these basic categories:

 

Cap/Style

Large Value, Large Blend, Large Growth, Mid Value, Mid Blend, Mid Growth, Small Value, Small Blend, Small Growth

Sectors

Consumer Discretionary, Consumer Staples, Energy, Financials, Health Care, Industrials, Information Technology, Materials, Telecommunication Services, Utilities

Regions

USA, Americas, Europe, Asia/Pacific, Global, Emerging Markets

Investment categories designated by Fidelity may not match investment categories designated by third parties, and may differ depending on investment product.

 

Investment Grade (Investment Grade Bond)

The broad credit designation given to corporate and municipal bonds which have a high probability of being paid, and few, if any, speculative features. Bonds rated Baa and higher by Moody's Investors Service, or BBB and higher by Standard & Poor's, are considered by those agencies to be "investment grade."

 

Investment Option

The official name and portfolio number for each investment option held in a Fidelity variable annuity.

 

 

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