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| Insider trading | The purchase or sale of stock while having access to privileged information resulting in personal gain. Ex. If your companys accountant comes and tells you of fantastic earnings and then you go out and purchase shares. |
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| Insolvent | A corporation that no longer has the ability to pay its debts. |
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| Intangible Assets | Intangible, literally meaning not being able to touch. An intangible asset for a company is one that has value and adds value to the company but is not physical. A patent on a special type of foam could be an intangible asset for a mattress manufacturer, notice it is the patent and not the foam that we are talking about. Intangibles are frequently improperly priced and thus the absolute value of an intangible can never be precisely pinpointed. When Warren Buffet invested in Coke one of the company's most attractive assets was its brand. How much is the brand of Coke worth? Certainly something, a lot, but it is difficult to accurately value such an item. |
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| IPO-initial public offering | Is the first time a corporation gives investors a chance to purchase shares of their company, commonly referred to as going public. When Tim Hortons went public there was a media frenzy around the company this type of scenario is not uncommon for high profile companys such as Google, Yahoo etc. |
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| Junk bond | A very risky bond with a bad credit rating it usually has a lucrative yield but is not considered investment grade due to the amount of the risk. |
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| Kickback | A clandestine gift, frequently money, for a person who refers someone that results in a contract or sale. |
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| Kill | To cancel an order that has been placed but not filled. |
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| Knock-out option | An option that loses its value when an commodity or currency crosses a define threshold. |
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| Ladder strategy | A fixed income security plan that invests in similar amounts for different amounts of time. The idea is to reduce the threat of interest rates. So if you have a bond that matures in one month a interest rates shoot up, you have the chance of reinvesting it at the inflated rate rather than having all of your money tied up only some of the money will miss the increased interest rate. |
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| Lagging Indicator | is defined as an economic measurement that is slow to react to changes in trends in the economy. An example of a lagging indicator would be the consumer price index. |
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