Investor Education

Investor Glossary

Terms beginning with 'I'

Ill-Health Early Retirement
Retirement on medical grounds before normal retirement date. The benefit payable in these circumstances may be greater than that paid to a member retiring early in normal health.

Immediate Annuity
An annuity which commences immediately, or shortly after, it is purchased.

See also: Annuity

Income Fund
A mutual fund that concentrates on high dividend paying stocks.

Income Statement
A financial statement of a company or individual’s earnings which demonstrates how revenues were spent and how much remains as net income.

Income Stock
A stock with a high dividend rate.

The forming of a business into a legal entity with various rights and duties.

Index Fund
A mutual fund that attempts to duplicate the performance of a market index such as the Jamaica Stock Exchange or the S&P 500.

The system under which pensions in payment (and possibly also preserved benefits) are increased automatically at regular intervals by reference to the rate of increase in a specified index of prices or earnings.

Individual Retirement
Account (IRA) A retirement plan where the contributed funds are tax protected.

The rate of the rise in the price of goods and services.

Inflation Hedge
An asset whose values rises with inflation.

The inability to pay the currently due financial obligations.

The amount a borrower pays for the use of a lender’s money. This may be compounded on a monthly, quarterly, annual or other periodic basis.

International Fund
A mutual fund that invests in securities of firms that are based outside the fund’s home country.

Any asset that yields benefits

Investment Banker
A firm that organizes a syndicate to underwrite or market a new issue of securities.

Investment Company
A company that manages pooled portfolios for a group of owners.