Imports
Goods and services that one country purchases from others. They are the opposites of exports, too many imports can result in an unfavorable balance of trade.
Import Duty
Tariff, a federal tax on imports and exports usually instated to raise revenue or to protect domestic industries from a foreign competitor.
Income Tax
The annual tax that is levied by the federal government, state and local governments that tax one’s personal income, the income of a household and unincorporated businesses, as well as the corporate income tax, which taxes the net earnings of corporations. The income tax was instituted by the Sixteenth Amendment, and accounts for around half of the Federal Government’s revenue. The ranges of individual’s incomes are separated into Tax Brackets, each taxed at a different rate according to the level of income. (15%, 28%, 31%, 36%, 39.6%)
Index
A combination of stocks, bonds or other securities selected to represent a specific market, industry or asset class. Investors use these indexes to measure the overall health of specific markets and as standards for comparison.
Industrial Production
A monthly report given by the Federal Reserve that measures the output at factories, utilities and mines. The Industrial Production Index rises during economic expansions and falls during recessions. This index is useful for analysts who have an interest in bond prices, and the economy.
Inflation
The rate at which the general level of prices for goods and services rise. Measures of inflation include the consumer price index (CPI) and the producer price index (PPI).
Infrastructure
A country's basic transportation, communications, and power systems that are necessary for its economy to operate.
Initial Investment
The amount required to make your first investment in a mutual fund. The typical initial investment for a retail mutual fund ranges between $1,000 and $3,000. Initial investments for IRA accounts are usually lower.
Insider
A person, such as an executive officer or director, who has information about a company before it is available to the public. It also refers to an individual who owns more than 10% of the voting shares of a company. All insider trades must be disclosed to the Securities and Exchange Commission. It is illegal for insiders to trade on corporate information that has not yet been released to the public. Many professional investors watch insider activity closely for clues to a company's future.
Insurance Policy
An insurance contract that specifies what risks are being insured and what premiums must be paid to keep this insurance against those risks.
Ex: Home insurance, life insurance, automobile insurance
Interest rate
A rate charged for the lending of money, collecting by repayments to the lender. The rate is a percentage of the original sum that is lent. The sum is usually given as an annual rate.
The percentage is calculated by the amount of interest over the principal amount.
Internal Revenue Service (IRS)
The US agency in charge of collecting federal taxes, both corporate and personal, as well as social security taxes, excise, and gift taxes. The IRS enforces and enacts the rules and regulations set down by the US Department of Treasury.
International Monetary Fund
An organization established in 1944 that makes loans and provides other services to stabilize world currencies and promote an orderly and balanced trade. In contrast to the World Bank, the IMF focuses on lowering trade barriers and stabilizing currencies, rather than foreign exchange reserves and balances of trade. Member nations can obtain foreign currency when needed, thus making it possible to make adjustments in their balance of payments without currency depreciation.
Inventory
The monetary value of a company's raw materials, works, and supplies used in day to day operations and manufactured goods.
Investment
The use of capital to obtain more money by allowing that capital to be used in income producing enterprises, or risk-involved business ventures that are designed to generate more capital.
Invoice
A bill made by the seller of certain goods and submitted to the purchaser which lists all the items bought and the price for these items.
Itemized deductions
Certain items such as state or local tax payments, charity gifts, mortgage interests, or IRA contributions that allow the taxpayer to reduce the adjusted gross income on his or her tax return.