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
What Is Intermarket Spread Swap? An intermarket spread swap is an exchange, or sale, of one bond for another with different terms, such as a different coupon rate, credit rating, or maturity date, to capitalize on yield discrepancies between bond sectors. Key Takeaways An intermarket spread swap is an exchange, or sale, of one bond
What Is the Intermarket Surveillance Group (ISG)? The Intermarket Surveillance Group (ISG) is comprised of more than 50 organizations worldwide, including market regulators and exchanges from various countries around the world. The objectives of the group are to monitor and identify manipulative or fraudulent activities in the financial markets and to share information between members. Information sharing allows
What Was the Intermarket Trading System (ITS)? The Intermarket Trading System (ITS) was an electronic network that linked the trading floors of nine American stock exchanges. Brokers and market makers on any of the linked exchanges could use ITS to find and execute the best price available. A broker on the floor of one exchange could
What Is Intermodal Freight? Intermodal freight consists of products and raw materials that are transported in a container by a variety of vehicles, such as container ships, semi-trailer trucks, and trains. Containers designed for intermodal freight often adhere to International Organization for Standardization (ISO) dimension guidelines, which allow the freight to remain in the same container when
What Is an Internal Audit? Internal audits evaluate a company’s internal controls, including its corporate governance and accounting processes. These types of audits ensure compliance with laws and regulations and help to maintain accurate and timely financial reporting and data collection. Internal auditors are hired by companies who work on behalf of their management teams.
What Is an Internal Auditor (IA)? An internal auditor (IA) is a trained professional employed by companies to provide independent and objective evaluations of financial and operational business activities, including corporate governance. They are tasked with ensuring that companies comply with laws and regulations, follow proper procedures, and function as efficiently as possible. Key Takeaways An
What Is the Internal Capital Generation Rate (ICGR)? The internal capital generation rate (ICGR) is a quantifiable mathematical rate that portrays how quickly a bank is able to generate. The internal capital generation rate is calculated by dividing the bank’s retained earnings by the average balance of the combined equity of all stockholders for a
What Are Internal Controls? Internal controls are accounting and auditing processes used in a company’s finance department that ensure the integrity of financial reporting and regulatory compliance. Internal controls help companies to comply with laws and regulations, and prevent fraud. They also can help improve operational efficiency by ensuring that budgets are adhered to, policies
What Is an Internal Growth Rate (IGR)? An internal growth rate (IGR) is the highest level of growth achievable for a business without obtaining outside financing, and a firm’s maximum internal growth rate is the level of business operations that can continue to fund and grow the company. The internal growth rate is an important
