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ICE Futures Canada (formerly the Winnipeg Commodity Exchange)
An exchange that trades agricultural futures and options exclusively.

Income Bond
Generally, an income bond promises to repay principal but to pay interest only when earned. In some cases, unpaid interest on an income bond may accumulate as a claim against the company when the bond matures.

Income Splitting
A tax planning strategy whereby the higher-earning spouse transfers income to the lower-earning spouse to reduce taxable income.

Income Statement
See Earnings Statement.

Income Tax Act (ITA)
The legislation dictating the process and collection of federal tax in Canada, administered by Canada Revenue Agency.

Income Trusts
A type of investment trust that holds investments in the operating assets of a company. Income from these operating assets flows through to the trust, which in turn passes on the income to the trust unitholders.

Index
A measure of the market as measured by a basket of securities. An example would be the S&P/TSX Composite Index or the S&P 500. Fund managers and investors use a stock index to measure the overall direction and performance of the market.

Index-Linked GICs
A hybrid investment product that combines the safety of a deposit instrument with some of the growth potential of an equity investment. They have grown in popularity, particularly among conservative investors who are concerned with safety of capital but want yields greater than the interest on standard interest bearing GICs or other term deposits.

Indexing
A portfolio management style that involves buying and holding a portfolio of securities that matches, closely or exactly, the composition of a benchmark index.

Individual variable insurance contract (IVIC)
The term used in the IVIC Guidelines to describe a segregated fund contract.

Inflation
A generalized, sustained trend of rising prices.

Inflation Rate
The rate of change in prices. See also Consumer Price Index.

Inflation Rate Risk
The risk that the value of financial assets and the purchasing power of income will decline due to the impact of inflation on the real returns produced by those financial assets.

Information Circular
Document sent to shareholders with a proxy, providing details of matters to come before a shareholders' meeting.

Initial Public Offering (IPO)
A new issue of securities offered to the public for investment for the very first time. IPOs must adhere to strict government regulations as to how the investments are sold to the public.

Initial Sales Charge
A commission paid to the financial adviser at the time that the policy is purchased. This type of sales charge is also known as an acquisition fee or a front-end load.

Insider
All directors and senior officers of a corporation and those who may also be presumed to have access to nonpublic or inside information concerning the company; also anyone owning more than 10% of the voting shares in a corporation. Insiders are prohibited from trading on this information.

Insider Report
A report of all transactions in the shares of a company by those considered to be insiders of the company and submitted each month to securities commissions.

Instalment Debentures
A bond or debenture issue in which a predetermined amount of principal matures each year.

Instalment Receipts
A new issue of stock sold with the obligation that buyers will pay the issue price in a specified series of instalment payments instead of one lump sum payment. Also known as Partially Paid Shares.

Institutional Client
A legal entity that represents the collective financial interests of a large group. A mutual fund, insurance company, pension fund and corporate treasury are just a few examples.

Insured Asset Allocation
An asset allocation strategy whereby there is a base portfolio value below which the portfolio is not allowed to drop.

Intangible Asset
An asset having no physical substance (e.g., goodwill, patents, franchises, copyrights).

Integrated Asset Allocation
An asset allocation strategy that refers to an all-encompassing strategy that includes consideration of capital market expectations and client risk tolerance.

Interest
Money charged by a lender to a borrower for the use of his or her money.

Interest Coverage Ratio
A debt ratio that tests the ability of a company to pay the interest charges on its debt and indicates how many times these charges are covered based upon earnings available to pay them.

Interest Rate Risk
The risk that changes in interest rates will adversely affect the value of an investor's portfolio. For example, a portfolio with a large holding of long-term bonds is vulnerable to significant loss from changes in interest rates.

International Monetary Fund (IMF)
Entity whose purpose is to promote cooperation and collaboration on international monetary and trade issues.

Interval Funds
A type of mutual fund that has the flexibility to buy back its outstanding shares periodically. Also known as closed-end discretionary funds.

In-the-Money
A call option is in-the-money if its strike price is below the current market price of the underlying security. A put option is in-the-money if its strike price is above the current market price of the underlying security. The in-the-money amount is the option's intrinsic value.

Intrinsic Value
That portion of a warrant or call option's price that represents the amount by which the market price of a security exceeds the price at which the warrant or call option may be exercised (exercise price). Considered the theoretical value of a security (i.e., what a security should be worth or priced at in the market).

Inventory
The goods and supplies that a company keeps in stock. A balance sheet item.

Inventory Turnover Ratio
Cost of goods sold divided by inventory. The ratio may also be expressed as the number of days required to sell current inventory by dividing the ratio into 365.

Investment
The use of money to make more money, to gain income or increase capital or both.

Investment Advisor (IA)
An individual licensed to transact in the full range of securities. IAs must be registered in by the securities commission of the province in which he or she works. The term refers to employees of SRO member firms only. Also known as a Registrant or Registered Representative (RR).

Investment Company, or Fund
A company which uses its capital to invest in other companies. There are two principal types: closed-end and open-end or mutual fund. Shares in closed-end investment companies are readily transferable in the open market and are bought and sold like other shares. Capitalization is fixed. Open-end funds sell their own new shares to investors, buy back their old shares, and are not listed. Open-end funds are so-called because their capitalization is not fixed; they normally issue more shares or units as people want them.

Investment Counsellor
A professional engaged to give investment advice on securities for a fee.

Investment Dealer
A person or company that engages in the business of trading in securities in the capacity of an agent or principal and is a member of IIROC.

Investment Industry Association of Canada (IIAC)
A member-based professional association that represents the interests of market participants. Investment Industry Regulatory Organization of Canada (IIROC) The Canadian investment industry's national self-regulatory organization. IIROC carries out its regulatory responsibilities through setting and enforcing rules regarding the proficiency, business and financial conduct of dealer firms and their registered employees and through setting and enforcing market integrity rules regarding trading activity on Canadian equity marketplaces.

Investment Policy Statement
The agreement between a portfolio manager and a client that provides the guidelines for the manager.

Investor
One whose principal concern is the minimization of risk, in contrast to the speculator, who is prepared to accept calculated risk in the hope of making better-than-average profits, or the gambler, who is prepared to take even greater risks.

Irrevocable Beneficiary
A beneficiary whose entitlements under the segregated fund contract cannot be terminated or changed without his or her consent.

Issue
Any of a company's securities; the act of distributing such securities.

Issued Shares
That part of authorized shares that have been sold by the corporation and held by the shareholders of the company.

Issuer Bid
An offer by an issuer to security holders to buy back any of its own shares or other securities convertible into its shares.