Investment grade
A credit rating indicating that a bond or other debt security is considered to have a relatively low risk of default. Investment-grade bonds are typically issued by stable and creditworthy borrowers and have lower yields than non-investment-grade bonds.
Investment Horizon
The length of time an investor plans to hold an investment before selling it. Investment horizon is an important consideration for asset allocation, risk management, and investment strategy
Internal Rate of Return
A measure of the profitability of an investment, representing the discount rate that makes the net present value of the investment’s cash flows equal to zero. IRR is used to evaluate the potential return of an investment and compare it to alternative investments.
Interest rate risk
The risk of loss due to changes in interest rates. Interest rate risk affects the value of fixed-income securities such as bonds and is a key consideration for bond investors.
Interest
The cost of borrowing money, usually expressed as a percentage of the principal amount borrowed. Interest is paid by borrowers to lenders as compensation for the use of their funds.
Institutional Investor
An organization or entity that invests large sums of money on behalf of its clients or members, such as pension funds, mutual funds, insurance companies, and hedge funds. Institutional investors typically have access to greater resources and expertise than individual investors
Initial Public Offering
The first sale of stock by a private company to the public, marking its transition to a publicly traded company. IPOs raise capital for companies and provide liquidity for existing shareholders.
Inflation
A sustained increase in the general price level of goods and services in an economy over a period of time. Inflation erodes the purchasing power of money and can have significant economic and social consequences.