What Is an Intrastate Offering? In the United States, an intrastate offering is a securities offering that can only be purchased in the state in which it is being issued. Because the offering only includes one state, it does not fall under the jurisdiction of the Securities and Exchange Commission (SEC). Therefore, it does not
What Is Intrinsic Value? Intrinsic value is a measure of what an asset is worth. This measure is arrived at by means of an objective calculation or complex financial model. Intrinsic value is different from the current market price of an asset. However, comparing it to that current price can give investors an idea of
What Is an Introducing Broker? An introducing broker (IB) is a broker in the futures markets who has a direct relationship with a client, but delegates the work of the floor operation and trade execution to another futures merchant, typically a futures commission merchant (FCM). The IB is usually affiliated with the FCM, either as
What Is Inventory? The term inventory refers to the raw materials used in production as well as the goods produced that are available for sale. A company’s inventory represents one of the most important assets it has because the turnover of inventory represents one of the primary sources of revenue generation and subsequent earnings for
What Is Inventory Management? Inventory management refers to the process of ordering, storing, using, and selling a company’s inventory. This includes the management of raw materials, components, and finished products, as well as warehousing and processing of such items. There are different types of inventory management, each with its pros and cons, depending on a
What Is an Inventory Write-Off? An inventory write-off is an accounting term for the formal recognition of a portion of a company’s inventory that no longer has value. An inventory write-off may be recorded in one of two ways. It may be expensed directly to the cost of goods sold (COGS) account, or it may
What Is an Inverse ETF? An inverse ETF is an exchange traded fund (ETF) constructed by using various derivatives to profit from a decline in the value of an underlying benchmark. Investing in inverse ETFs is similar to holding various short positions, which involve borrowing securities and selling them with the hope of repurchasing them
What Is an Inverse Floater? An inverse floater is a bond or other type of debt whose coupon rate has an inverse relationship to a benchmark rate. An inverse floater adjusts its coupon payment as the interest rate changes. An inverse floater is also known as an inverse floating rate note or a reverse floater.
What Is the Inverse Head and Shoulders? An inverse head and shoulders, also called a “head and shoulders bottom”, is similar to the standard head and shoulders pattern, but inverted: with the head and shoulders top used to predict reversals in downtrends. This pattern is identified when the price action of a security meets the following
What Is an Inverse Volatility ETF? An inverse volatility exchange-traded fund (ETF) is a financial product that allows investors to gain exposure to volatility, and thus hedge against portfolio risk, without having to buy options. As long as volatility remains low, investors may see a substantial return, as an inverse volatility ETF is essentially a bet that
