GLOSSAIRE DE LA FINANCE






Nous vous proposons ci-après un glossaire de la finance rédigé par nos soins.
Il vous suffit de cliquer sur un terme pour accéder à sa définition.

puce In the Money Option

In case of a call option an option the exercice price of which is below the current market price of the security; in case of a put option an option the exercice price of which is above the price of the security.

puce Incentive Stock Options or ISOs

Stock options available only to full time employees that are entitled to special tax treatment under the Internal Revenue Code.
The employee who exercices the option does not have to pay tax until he sells the stocks.
See Non-Qualified Stock Options and Combination Stock Option Plan for comparison.

puce Inception

Date as from which Internal Rate of Return ( IRR) calculations for an investment or for a fund are started.
The date is also referred to as the vintage year.

puce Incubator

A company or facility designed to foster entrepreneurship and help start-up companies, usually technology-related, to grow through the use of shared resources, management expertise and intellectual capital.

puce Independent or Outside Director

A member of the Board of Directors who is not an employee of a company nor affiliated with a controlling stockholder of a company.

puce Index

A benchmark against which financial or economic performance is measured, such as the S & P 500, the SMI etc.

puce Informal Investor

Often the only source of financing for high tech oriented start up companies.
Funds are usually provided by friends, the family of the entrepreneur as well as by angels.
See also 4 Fs.

puce Information Rights

The contractual right to obtain information about a company, attend board meetings, etc.
Should be received by private equity investors.

puce Insider Trading

Term commonly used in reference to the buying and selling of securities based on material information relating to the company that has not been made public.
Insider trading according to this definition is against the law in most countries.
In the USA the term may also be used to refer to the buying and selling of shares of a public company by stockholders who own more than 10% of the company's stock.
Such transactions must be reported to the SEC.

puce Insiders

Directors, officers, key employees who have access to material non-public information relating to a company.

puce Insolvency

puce Institutional Investor

Contrary to private investors institutions such as insurance companies, investment funds, pensions funds etc, whose business is to invest, which generally have substantial assets and are supposed to be experienced in investments.

puce Intangible Asset

Something of value that cannot be physically touched, such as a brand, franchise, trademark or patent.

puce Intellectual Property

Patents, copyrights, trademarks, trade secrets and similar rights and ideas.

puce Intellectual Property right

Any intangible asset that consists of human knowledge and ideas.
Patents, copyrights, trademarks, trade secrets and similar rights in ideas, concepts, etc.
See also Copyrignt

puce Invested Capital

See Capitalization.

puce Investee Company

The company or entity into which a private equity fund invests directly.

puce Investment Bank

A person or firm engaged in the investment banking, the business of which includes activities such as underwriting the sale of securities, valuing business, advising on the financial aspects of mergers and acquisitions, etc.

puce Investment Company

The Company or entity into which a private equity fund invests directly.

puce Investment Letter

A written agreement between an investor and a seller of securities in a private placement.

puce Investment Memorandum

A document that commits an individual to acquire securities of a company and that describes the terms of the transactions.

puce IPO

[Initial Public Offering]
The first offering of securities of an issuer to the public.
For venture capitalists IPO's often generate a high return on their initial investment.

puce IRR

[Internal Rate of Return]
In a private equity fund the net total return to the investor from the start until a determined date.
See also J-curve

puce ISD

[Investment Services Directive]
A Directive produced by the European Commission regarding the provision of those services within the member states of the EU.
The Directive serves as the "passport to Europe" for securities houses.
The key feature of the Directive is that of mutual recognition.

puce Issued and Outstanding Stock (USA)

Issued stock of a corporation that is still outstanding and has not subsequently been repurchased by the corporation.
See Treasury Stock for comparison.

puce Issuer

The legal entity offering its securities for sale, whether it be a corporation, partnership, trust, or other appropriate entity.