The Trader’s Dictionary contains explanations of many of the financial terms that successful traders use on a daily basis. This Glossary covers over 200 terms related to the world of finance and trading. Knowing the terms and understanding their meanings will help you learn about trading.
There are currently 11 names in this directory beginning with the letter I.
IBEX 35 (Iberia Index) is the main stock index in Spain. The index consists of 35 largest companies by capitalization. The index is calculated on the Madrid Stock Exchange (Spanish: Bolsa de Madrid, BM).
Index - an indicator of the average value of financial instruments. For example, the S&P 500 index includes the 500 largest companies in America (thus showing the strength or weakness of the US stock market), and the US dollar index is the average value of the dollar against major currencies.
Inflation - an increase in the general price level or a decrease in the real value of money. The causes of inflation can be: an increase in the amount of money in circulation; growth of aggregate demand for goods and services with a non-increasing supply; reduction in aggregate supply with no decrease in demand; rise in prices for imported goods and services due to the devaluation of the national currency. It is believed that inflation of 1.5-2% per year is typical for a "healthy" economy. Lower inflation limits economic incentives to develop entrepreneurship. Higher inflation contributes to a significant depreciation of money. The opposite of inflation is deflation.
Investment bank - a financial institution whose main focus is to provide companies, political organizations, large and private investors with access to investment products on stock exchanges.
Investments - long-term transactions (from a year or more) in the financial markets, the real estate market or any other platform. Investments are divided into active and passive.
Issue of securities
The issue of securities is a legally regulated activity for the placement of securities in financial markets. The purpose of the issue of securities is to raise additional funds for the implementation of promising projects or to cover the existing debt. As a rule, the issue of shares is made to meet the current and nearby needs of the company, while the issue of bonds involves long-term borrowing.