Financial lexicon

Increase in cash capital

This operation involves raising funds from shareholders and the public at large to fund the company's expansion.

Inflation

Economic imbalance hallmarked by an increase in the overall level of prices.

Insider trading

Use of confidential information about a company for market speculation purposes.

Institutional investors

This term applies to insurance companies, pension funds, deposit offices and accounts managed by banks (unit trusts and investment funds).

Intrinsique value

The price of an option equals the total for the intrinsic value and the temporal value. It is the difference between the underlying price and the strike price. It is invariably higher or equal to zero.

Introduction or IPO

(IPO : Initial Price Offering). A new company being introduced on the stock exchange.

Investment club

Gathering of individuals who agree on the joint management of a portfolio of different securities (shares, bonds, unit trusts) and share the earnings and capital appreciations.

Investment horizon

Period of time during which an investment is made.

Investment trust

Portfolio of securities financed by resources derived from the savings of private individuals and managed by professionals. Example: unit trusts.

Issue premium

The difference between the nominal value of a share and its issue price during a capital increase. When the price for new shares is set at 28 ¤ for a nominal value of 30 ¤, the issue premium is 2¤.

Issue price

Price at which new assets are issued.