What Are Intersegment Sales? Intersegment sales are the transfer or exchange of goods for monetary compensation from one segment of a company to another within the same company. Intersegment sales exist when a corporation has multiple segments or divisions, and product sales occur between these segments. Disclosures of intersegment sales are typically included in the
What Is Intertemporal Capital Asset Pricing Model (ICAPM)? The Intertemporal Capital Asset Pricing Model (ICAPM) is a consumption-based capital asset pricing model (CCAPM) that assumes investors hedge risky positions. Nobel laureate Robert Merton introduced ICAPM in 1973 as an extension of the capital asset pricing model (CAPM). CAPM is a financial investing model that assists
What Is Intertemporal Choice? Intertemporal choice is an economic term describing how current decisions affect what options become available in the future. Theoretically, by not consuming today, consumption levels could increase significantly in the future, and vice versa. Key Takeaways Intertemporal choice refers to decisions, such as spending habits, made in the near-term that can affect future
What Is Intertemporal Equilibrium? An intertemporal equilibrium is an economic concept that holds that the equilibrium of the economy cannot be adequately analyzed from a single point in time but instead should be analyzed over the long term. According to this concept, households and firms are assumed to make decisions while considering the effect that
What Is an Interval Fund? An interval fund is a non-traditional type of closed-end mutual fund that periodically offers to buy back a percentage of outstanding shares from shareholders. Shareholders are not, however, often required to sell their shares back to the fund. This can be contrasted with traditional closed-end funds that raise a prescribed amount of capital only at
What Is an Inter-Vivos Trust? An inter-vivos trust is a fiduciary relationship used in estate planning created during the lifetime of the trustor. Also known as a living trust, this trust has a duration that is determined at the time of the trust’s creation and can entail the distribution of assets to the beneficiary during or after
What Is an Interim Statement? An interim statement is a financial report covering a period of less than one year. Interim statements are used to convey the performance of a company before the end of normal full-year financial reporting cycles. Unlike annual statements, interim statements do not have to be audited. Interim statements increase communication
What Is the Interledger Protocol? Interledger protocol is a blockchain protocol used for payments across different payment networks. The open-source protocol connects ledgers from two or more different banks, thereby removing intermediaries and central authorities from the system. It promises to reduce costs and the time required to process cross-border transactions. Interledger is utilized by
What Is an Interlisted Stock? An interlisted stock is one that is listed on multiple stock exchanges, usually in a company’s home country and one or more additional countries. Interlisting is thought to offer a range of benefits to the listing company, primarily access to more and cheaper capital. Key Takeaways An interlisted stock is one
What Is an Intermarket Spread? An intermarket spread is an arbitrage strategy for trading various correlated instruments in the commodity futures market. Using this method, a trader places orders for the simultaneous purchase of a commodity futures contract with a given expiration month and also sells the same expiration month of a futures contract in a closely related commodity (e.g., purchase
