Financy Glossary
The online dictionary of financial terms



Immediate or Cancel Order

An order that gives the market a very short window to take the other side of the trade. Once the order has been issued, it will immediately be fully filled, partially filled or not filled at all, and then canceled right away.

This type of order is most commonly seen on markets for options or futures. It can be a sell order or a buy order.


In The Money

An option or warrant that currently has a positive intrinsic value is said to be in the money.


  • The exercise price of this call option is $100. Right now, the market price of the underlying instrument is $150. At this time, the option is in the money.
  • The exercise price of this put option is $500. Right now, the market price of the underlying commodity is $400. At this time, the option is in the money.

Income Stock

Shares in a stock company known for consistently paying high dividends to its shareholders is commonly referred to as income stock.


Initial Margin

The collateral required to open a margin account with a broker.


Initial Public Offering

The first time a company makes a public offering of its shares is called Initial Public Offering (IPO) or floating. The IPO (US term) or floating (UK term) converts the company from a private company to a publicly traded company. This is also known as going public.


Inverted Yield Curve

An inverted yield curve shows a reversal of the traditional yield pattern.

One example is when the yields on long-term instruments are lower than the yields on short-term instruments. This situation is a deviation from the norm; long-term instruments usually have a higher yield since investors are hesitant to purchase long-term instruments without being compensated for the increased risk of holding a security for a long time. An inversion of this kind can for instance occur when there is a shortage, or even just a feared shortage, of long-term instruments on the market.


Iron Butterfly

In finance, the iron butterfly is an option strategy that contains four options and involves both a a long (or short) straddle, and a short (or long) combination. It has limited risk and limited profit potential.


Issue Price

The price at which buyers purchase something when it is first issued. Also known as offering price.

Fort securities, it is the price at which a new security will be distributed prior to the new security reaching the secondary market.

Example of issue price: The government issues 5,000 bonds with an issue price of €100 per bond. During the lifetime of such a bond, the market price for it may change, and it can fall below as well as rise above €100 depending on how much someone is willing to pay for it.


Issued Share Capital

The amount of share capital in a stock company that shareholders have actually subscribed to own. It can be smaller than the amount of authorized share capital.


Issuing House

In finance, an issuing house is a financial institution that engages in finding capital for companies by issuing and selling shares on their behalf. An Issuing House can work with both public companies and with private companies that wish to become public through this issuing of shares. The issuing house will, among other thing, help make sure that the issuing of shares complies with applicable law and market regulations.