The discount rate at which an investment has a zero net present value.
Internalisation
A process where broker-dealers use internal inventories to settle trades, bypassing exchanges.
Intersettle
A sister company of the Swiss Securities Clearing Corporation (SEGA), which has been set up for international settlement purposes.
In-the-money
A call option is in-the-money if the price of the underlying instrument is higher than the exercise/strike price. A put option is in-the-money if the price of the underlying instrument is below the exercise/strike price. See also Out-of-the-money.
Intramarket spread
Intrinsic value
The amount by which an option is in-the-money. The intrinsic value is the difference between the exercise/strike price and the price of the underlying security.
Inverse floater
A bond with a coupon rate structured to move in the opposite direction of interest rates.
Investment Services Directive
The European Union Investment Services Directive, adopted in 1993, sought to establish the conditions in which authorised investment firms and banks could provide specified services in other European Union Member States on the basis of home country authorisation and supervision. It has subsequently been extended by the Markets in Financial Instruments Directive.
Investment trust
A company whose sole business consists of buying, selling and holding shares.
