Barclays Stockbrokers Glossary
Glossary I


Ichimoku Clouds
A multi-faceted indicator designed to give support/resistance levels, trend direction, and entry/exit points of varying strengths. General theory behind this indicator states that if price action is above the cloud, the overall trend is bullish, and if below the cloud, the overall trend is bearish.

International Financial Reporting Standards. These international accounting standards state how particular types of transactions should be reported in financial statements.
Investment Managers Association - the trade body for unit trusts and similar funds, formerly known as AUTIF. They can be contacted at 65 Kingsway, London WC2B 6TD (020 8207 1361) and
Income drawdown
Also referred to as pension fund withdrawal. This allows investors to delay buying an annuity (until age 75 at the latest) and to take an income direct from their pension fund at retirement. The Inland Revenue sets minimum and maximum levels of income that can be taken from the fund each year. Within these limits the investor can choose any level and change the amount drawn at any time. These limits are set at the outset and will apply for the first 3 years. They are reviewed every 3 years, after this to take account of the investor's age and the value of his or her fund.
Income bonds
Securities on which interest is only payable out of profits.
Income units
Units in a Unit Trust which entitle the investor to regular payments of income.
Index (or average)
Statistical tools that measure the state of the stock market or the economy based on the performance of shares or other investments, eg, the FTSE 100 and the Dow Jones Industrial Average.
Index funds
Funds which seek to mirror the returns of a market index (e.g. FTSE 100 Index), by investing directly in the securities, which make up that index. Also see 'tracker funds'.
Index Linked Gilt
These differ from conventional Gilts because the interest payments and the capital are adjusted in line with the Retail Prices Index. This means that both the interest and the principal on redemption paid by these Gilts are adjusted to take into account any accrued inflation since the Gilt's issue.
Indexation relief
Indexation relief is an allowance which adjusts chargeable gains for the effects of inflation. It runs from the month the shares were acquired, to the earlier of the month when the shares are disposed of or April 1998. Shares acquired on or after 5 April 1998 do not qualify for indexation allowance.
Individual Savings Account (ISA)
A tax-efficient environment in which a variety of investments can be held. ISAs are either for holding cash, or for holding stocks and shares.

An increase in the general price level of goods and services in an economy over a period of time. When inflation is high, the value of your money can decrease as things generally cost more.
Initial charge
The charge levied on investors by the Fund Manager when units/shares are purchased. Also often known as front-end-load.
Initial offer
The first offer made by a company for another company's shares. If the offer becomes successful, it will then go "unconditional" and eventually becomes "compulsory".
Insider dealing
The illegal act of buying and selling shares on the basis of confidential 'inside' information not available to other investors.
Installment payment
Means the additional payment for a partly paid security (not a nil-paid security) that results in the shares being either fully paid or having another installment paid towards their being fully paid shares.
Intangible asset
An asset which has no physical substance, such as goodwill, patents, trademarks and copyrights.
Inter Dealer Broker
Member of the London Stock Exchange that acts as a link between firms to enable them to trade with each other anonymously.
The return earned for lending money to others. The money you can earn by depositing money in a savings account. You can also earn interest on some types of investments where you are lending money to a company or government, eg gilts and bonds.
Interim dividend
A dividend declared and paid before annual earnings have been determined, generally half-yearly.
Interim results
These are released after the first 6 months of the financial year by all companies on the stock exchange. They tend to concentrate on profitability or loss, and may or may not be used to justify an interim dividend.
A person or institution empowered to make investment decisions for others. These specialists are knowledgeable about investment alternatives and can achieve a higher return than the average investor can.

Inverse ETC
Also known as a ‘short ETC’, this type of exchange traded commodity is designed to perform as the inverse of whatever index or benchmark it is aiming to track. So if the index loses value, the ETC will gain value and vice versa.

Inverse ETF
Also known as a ‘short ETF’, this type of exchange traded fund is designed to perform as the inverse of whatever index or benchmark it is aiming to track. So if the index loses value, the ETF will gain value and vice versa.
The use of capital to create more money through income-producing vehicle or through more risk-oriented ventures. The Financial Services & Markets Act 2000 lists items to be regulated as such include shares, bonds and pensions.
Investment business dealing
Advising, dealing or managing investments. Those doing so need to be authorised by FCA.
Investment Club
An organisation which consists of a group of people who meet on a regular basis to pool their money and investment ideas, thus benefiting from shared administration costs. Barclays Stockbrokers MarketMaster® is the ideal account for Investment Clubs.
Investment fund
A fund of funds, owned by one or more investors, that is managed as one entity by one or more managers. The legal structure of the fund can take many forms and can include unit trusts, investment trusts and OEICs.

Investment objective
General description of the fund's investment objectives and type of securities the fund invests in.

Investment Trust
A collective investment company listed on the London Stock Exchange which invests in the shares of other companies. These have a limited number of shares and the price varies with supply and demand.

Initial Public Offering. An offering of shares in the equity of a company to the public for the first time - a type of flotation.

Debentures, gilts, and loan stock which have no fixed redemption date or undated. Generally, they are therefore only repayable at the option of the borrower or, as with companies, on a liquidation or in special circumstances such as a takeover.

International Retail Service. Provided by London Stock Exchange to allow access to trading in international stocks, with dealing and settlement in sterling. Stock is held and settled through CREST.

ISA regulations
The Individual Savings Account Regulations 1998 (statutory instrument 1998 No. 1870) and any other rules and/or regulations relating to ISAs.

Investment Services Directive. European Union Directive imposing common standards on investment businesses.

A UK quote-driven equity market service for listed and unlisted securities. The ISDX service is operated by ICAP and is authorised and regulated by the Financial Conduct Authority. Not classified as a Recognised Investment Exchange.

Issue price
The price at which shares are offered to investors when a company floats on the stock market.

Issuer bid
An offer by an issuer to buy back some of its own securities. This is usually done because the company feels the market is undervaluing its securities.

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