I
ICEBERG PRINCIPLE. The idea that in any situation only a small part of the problem will be initially visible.
“Adds Andrew Brimmer, an economist and financial consultant who sits on the boards of several major corporations: ‘It’s like the iceberg principle. The 8% of the iceberg above the water is what we see—large corporations that have institutionalized affirmative action. The vast bulk of firms are below the surface—the smaller corporations have done virtually nothing.’” (Wall Street Journal, March 20, 1995, p. B1)
IF I TELL YOU, I WILL HAVE TO KILL YOU. A phrased used jokingly in business meaning the information is proprietary, and cannot be divulged.
ILLEGAL ALIENS. People from another country without proper documentation.
ILLEGAL PARKING. Stock market practice of having another firm purchase securities in its name but guaranteed by the real investor.
“Michael Milken and Ivan Boesky made the practice of illegal parking famous in the 1980s. Illegal parking allowed Boesky to circumvent SEC net capital requirements.” (Jim Reilly, Robinson-Humphrey Co., 1996)
ILLIQUID. Lacking cash.
IMPRESSION. One exposure to a brand message.
IN ABSENTIA. In the absence of (Latin).
IN BED WITH. In close agreement or financially-connected with.
IN CAMERA. In private (Latin).
INCENT (TO). Provide incentives for employees.
“One of their weapons is an underground game called buzzword bingo, which works like a surreptitious form of regular bingo. Buzzwords – ‘incent,’ ‘proactive,’ ‘impactfulness,’ for example -- are preselected and placed on a bingo-like card in random boxes. Players sit in meetings and conferences and silently check off buzzwords as their bosses spout them; the first to fill in a complete line wins. But, in deference to the setting, the winner typically coughs instead of shouting out ‘bingo.’" (Wall Street Journal, June 8, 1998, p. A1)
IN DEEP WATER. In trouble.
INDIVIDUAL RETIREMENT ACCOUNT (IRA). Tax-deferred retirement savings program created in the 1980s to try to get Americans to save. With restrictions, workers can put up to $2,000 per year in an IRA account and not pay income taxes on the money or interest until they withdraw the funds.
INFANT INDUSTRY. New manufacturing companies. Infant industries have the potential for economies of scale if they survive long enough to grow. Governments frequently protect these firms from international competition through tariff barriers.
INFOMERCIAL. An extended (ten to thirty minutes) television advertisement; a television commercial presented as if it was entertainment or an informative report.
“The recall affects the Bowflex Power Pro XL, XTL and XTLU systems with the ‘< xml="true" ns="urn:schemas-microsoft-com:office:smarttags" prefix="st1" namespace="">
INFORMATION SUPERHIGHWAY. The combination of Internet, cellular, and satellite communication technologies.
INFRASTRUCTURE. Vital services and capital assets of a country.
IN-HOUSE. Done within the company, as opposed to OUTSOURCING.
INITIAL PUBLIC OFFERING (IPO). The first time a company’s stock is offered to investors. In the 1990s, IPOs have offered significant profits to investors who have FLIPPED the stock.
IN KIND. Barter, countertrade.
IN LOCO PARENTIS. In the place of a parent (Latin).
IN ONE FELL SWOOP. All at once.
Defenders of the planned acquisition say their case is clear-cut. Buying Noranda would allow CVRD to diversify its portfolio of metals in one fell swoop.” (Wall Street Journal, July 9, 2004. p. C14)
IN PLAY. Still available or not determined (baseball).
INS AND OUTS. The details associated with getting something done.
INSIDE CANDIDATES. Company employees being considered for a new position.
“The news that the company has chosen an inside candidate will surprise investors and analysts, who are concerned that the company will repeat past missteps. Mr. [Robert DiNicola] originally retired from the company in August 2000 and was succeeded at the helm by his hand-picked protege Beryl Raff, who had been named CEO the previous year.” (Wall Street Journal,
INSIDE TRACK. An advantage. In a footrace the inside runner travels a shorter distance around a curve than other competitors, thereby having an advantage.
“Meanwhile, PeopleSoft offered to cut $13 million from its list price for Albertsons Inc., the grocery chain, when it appeared Oracle had the inside track.’We were late to the party,’ said a PeopleSoft executive vice president, Phil Wilmington.” (Wall Street Journal,
INSIDER TRADING. The trading of shares of stock by a company’s board of directors, officers, senior employees, and shareholders with a significant percentage of the company stock. Under Securities and Exchange Commission rules, insiders can only buy and sell shares at certain times and must disclose their actions. Insider trading is also the illegal practice of buying or selling shares based on information not available to the investing public.
INSTITUTIONAL INVESTORS. Large investment companies, pension funds, insurance companies, banks, mutual funds, and endowments which are major investors in securities markets. Institutional investors often heavily influence market direction.
INSURABLE INTEREST. A life insurance requirement that the beneficiary of a policy have an economic interest or loss if the policyholder died.
INTERFACE. To interact with.
INTERLOCKING DIRECTORATE. A situation in which members of the board of directors sit on two or more companies that compete with each other. Interlocking directorates were made illegal in the
INTERNAL RATE OF RETURN (IRR). Discount rate at which the present value of future cash flows from an investment equals the cost of the investment.
INTERNAL REVENUE SERVICE (IRS).
INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT (IRBD, WORLD BANK). Created at BRETTON WOODS in 1944, the World Bank financed the reconstruction of Europe and
INTERNATIONAL ORGANIZATION FOR STANDARDIZATION (ISO). Swiss-based organization coordinating and setting quality control standards. ISO 9000 certification has become a requirement for many companies wanting to do business in
INTERNATIONAL MONETARY FUND (IMF), “THE FUND.” The IMF functions as the regulator of foreign exchange rates and as a source of international liquidity. IMF assistance comes with conditions, including monetary and fiscal spending restrictions which are often painful and controversial
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IN THE BAG. Certain.
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IN THE
“One Mandalay shareholder said he found it hard to believe Mandalay executives would pass up a deal, given the big run-up in the company's stock price already in recent months and the fact that Mandalay Chairman and Chief Executive Michael Ensign, as well as Vice Chairman William Richardson, sold most of their stakes last fall at about $40 a share. ‘They better not tell me they're not in the ballpark price-wise when they were sellers at $39,’ the investor said of the executives.” (Wall Street Journal,
IN THE BLACK. Operating profitably.
"The only time the government has been in the black was from 1994 to 1997, thanks to surpluses largely from the sale of assets.” (Wall Street Journal, Sept. 8, 2004, p. B10)
IN THE CARDS. Likely to happen.
“‘I can't say I thought they'd drop it today, but it was in the cards over the next couple of months,’ said William Gross, chief investment officer at Pacific Investment Management Co., or Pimco. Mr. Gross says he still expects the Fed to hold off on raising rates until the second half of the year -- probably until the fourth quarter -- but adds the Fed's statement yesterday was a small step toward making an interest-rate increase ‘easier to swallow’ for the bond market.” (Wall Street Journal,
IN THE CLEAR. Out of danger.
IN THE DRIVER’S SEAT. In charge, control.
“‘People are too pessimistic,’ he says. ‘Companies are very focused on keeping profitability and productivity high, and they're not about to give back gains achieved in recent years. And labor isn't exactly in the driver's seat.’" (Wall Street Journal,
IN THE KNOW. Well informed.
“Top this: Bush advisers try to stanch talk he'll beat an already jaw-dropping $20 million fund-raising goal for June. But besides the president's own events, others starring his wife and Cheney lift expectations further. ‘These guys are rocking and rolling,’ a Republican in the know says.” (Wall Street Journal,
IN THE LONG RUN. Over a considerable period of time. Economist John Maynard Keynes, whose economic models focused on the importance of short-run economic policy adjustments, is famous for the statement, “In the long run we are all dead.”
IN THE
IN THE MONEY. An option contract where the current market price is greater than the STRIKE PRICE for a call option and below the strike price for a put option.
IN THE PIPELINE. Being prepared; not ready for distribution at this time.
IN THE RED/RED INK. Operating at a loss.
“The Standard & Poor's 500 Index shed 8.53, or 0.76%, to 1113.88, now less than two points away from joining the Dow industrials and the Nasdaq in the red for the year.” (Wall Street Journal,
IN THE RUNNING/RACE. Under consideration.
“Although five or six institutions have shown interest in Aplus, only
IN THE TANK. Declining.
IN THE TRENCHES. In the workplace (World War I).
“In the print campaign that starts tomorrow, EDS strikes a dogged posture toward its work and recent troubles. One ad shows a bull preparing to charge. The text alludes to EDS's actions to fix poorly managed contracts that have led to its financial setbacks: ‘One thing we've learned after 42 years in the trenches, you never back down from a tough challenge.’" (Wall Street Journal,
IN TRANSITION. Unemployed, usually executives; changing.
“Mr. Bush's economic and Capitol Hill teams are also in transition, and efforts to advance the latest tax package have suffered as a result.” (Wall Street Journal,
INVENTORY RUNS. Computer analysis of inventory levels.
INVENTORY TURNS. How many times inventory is sold and replaced per year.
“Food sales fueled Wal-Mart's growth, climbing 34% in the quarter. Food carries lower margins, but it brings in customers more frequently, increases inventory turns and bolsters the sale of general merchandise – ‘a powerful combination for profits,’ said Mr. Church.” (Wall Street Journal,
INVERTED MARKET. Financial market where short-term interest rates are higher than long-term rates.
INVESTMENT GRADE. Bonds that do not have a high default risk. Corporate and municipal bonds that receive at least a Baa rating from MOODY’S or a BBB rating from STANDARD AND POOR’S agencies.
INVISIBLE HAND. Power of the marketplace.
“Every individual endeavors to employ his capital so that its produce may be of greatest value. He generally neither intends to promote the public interest, nor knows how much he is promoting it. He intends only his own security, only his own gain. And he is led by an invisible hand to promote an end which was no part of his intention. By pursuing his own interest he frequently promotes that of society more effectively than when he really intends to promote it.” (Adam Smith, Wealth of Nations, 1776)
INVOLUNTARY REDUCTION IN FORCE (IRIF). Corporate layoffs made after attempting to encourage workers to terminate voluntarily. Large
IRONCLAD. Solid, guaranteed, as in an ironclad promise.
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