Secured loans
trading crowd. The portion not executed is to be treated as cancelled. A stop is
considered an execution in this context. See: A.O.N. order, F.O.K. order.
Immediate settlement
Delivery and settlement of securities within five business days.
Immunization
The construction of an asset and a liability that are subject to offsetting changes
in value.
Immunization strategy
A bond portfolio strategy whose goal is to eliminate the portfolios risk against a
general change in the rate of interest through the use of duration.
Implied call
The right of the homeowner to prepay, or call, the mortgage at any time.
Implied repo rate
The rate that a seller of a futures contract can earn by buying an issue and then
delivering it at the settlement date. Related: cheapest to deliver issue
Implied volatility
The expected volatility in a stocks return derived from its option price, maturity
date, exercise price, and riskless rate of return, using an option-pricing model
such as Black/Scholes.
Import-substitution development strategy
A development strategy followed by many Latin American countries and other
L.D.C.s that emphasized import substitution - accomplished through
protectionism - as the route to economic growth.
Imputation tax system
Arrangement by which investors who receive a dividend also receive a tax credit
for corporate taxes that the firm has paid.
