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Business Definitions

Business Definitions
Definitions A
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Definitions D
Definitions E
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Definitions H
Definitions I
Definitions J,K
Definitions L
Definitions M
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Definitions O
Definitions P,Q
Definitions R
Definitions S
Definitions T
Definitions U,V
Definitions W,X
Definitions Y,Z


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Business Terms and Definitions (I))

Identification: Any form of documentation, a driver's license, social security card, credit card, passport, business card, state identification card, or other documents used to identify a person, place, or thing. Identification may be provided by signature, verbally, or by visual contact. Smell, hearing, or touch may be used to identify certain things.

Income Statement: A statement that records the profits, income minus expenses, of a business over a period of time that makes it easier to make pricing decisions.

Indemnity: The amount of compensation that an insurance company pays to the insured in the event of damage or other losses while under contract.

Index: A way to measure movement in the economy such as securities, industrial production, farming and ranching output, mining, and other segments of the economy using numerical figures that are adjusted periodically to reflect changes in prices and quantity of goods produced.

Individual Retirement Accounts (IRAs): Investment accounts that were authorized by Congress to give those who earn income the opportunity to save for retirement through tax deferred means. There are several types of IRAs, including traditional, simple, Roth, and Simplified Employee Plans (SEPs) that may be set up in banks or other savings institutions.

Inflation: The rise in prices due to fundamental changes in the economy that are caused by fluctuations in the basic costs of goods and services. Inflation usually happens during times of low unemployment and a marked increase in spending.

Inheritance Tax: A tax paid on a deceased person's estate to the state in which the deceased was a permanent resident. An Inheritance tax is not the same as federal estate tax.

Insider Trading: The act of buying and selling a company's stock by an employee or other affiliated person. Insider trading is legal if done through the proper channels. It is illegal if it breaches a fiduciary relationship of trust and confidence. Legal insider trading must take place by filing the proper documentation and statements with the Securities and Exchange Commission, disclosing all purchases and sales.

Interest: The cost of borrowing money that is expressed as a percentage rate for the time the money is in use. In most cases, interest is charged at an annual rate. Lenders use differing methods of calculating loan interest.

Interest Only Loan: A loan in which the borrower is required to pay only the interest payments at certain intervals, usually monthly, until the balance of the loan is due in it's totality. Interest only loans do not require amortization.

Interest Rate Cap: An agreement between the lender and the borrower in which the interest is set at a predetermined rate, usually at a cost to the borrower, and is maintained throughout the life of the loan.

Intestate: When a person dies without a will and leaves property that has to be probated under the auspices of state law. A court appointed administrator is appointed to distribute the deceased property.

Intrinsic Value: The dollar amount of the difference between the price of an option and the current cash value of an underlying security or other asset.

Investment: The placement of money or other resources into income producing opportunities that will cause an increase in wealth, such as the purchase of stocks and bonds, real estate, starting or buying a business, or other financial schemes to gain income, offset taxable liabilities, or to increase capital assets.

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