See: Dividend; Omitted Dividend

IBES (Institutional Broker's Estimate System)
A service provided by Lynch, Jones and Ryan. The brokerage firm gathers analysts' future earnings estimates on publicly traded companies and determines which companies' estimates have changed substantially.

See: Rating

Illegal Dividend
Dividend declared by the board of directors of a corporation that is in violation of its corporate charter or the state laws in which it is incorporated.

See: Corporation; Corporate Charter; Director; Dividend; Incorporation

Illiquid
Said of investments such as a stock, bond or commodity that cannot be readily converted into cash. A security becomes illiquid when a lack of trading activity in the security makes it hard to sell without taking a large loss. Other assets such as real estate can also be considered to be illiquid because there is not a ready market and they may take time to sell.

See: Cash Equivalent; Commodities; Liquidity

Imbalance Of Orders
Too many buy orders without matching sell orders or vice versa. An imbalance of orders can occur because of extraordinary corporate events such as a takeover, loss of a lawsuit that was expected to be won, or the death of a key executive. If the imbalance occurs before the market opens, the stock may have a delayed opening. However, if it occurs during the trading day, trading may be suspended until the specialist can make an orderly market.

See: Delayed Opening; Specialist; Suspended Trading

Immediate Family
As defined in the NASD Rules Of Fair Practice, an immediate family member includes parents, brothers, sisters, children, father-in-law, mother-in-law, sister-in-law, brother-in-law, and any other relatives who are financially supported. The Rules of Fair Practice use this definition when dealing with practices such as freeriding and withholding. The rules prohibit the sale of hot issues to members of a broker-dealer's immediate family or to persons trading for institutional accounts and their families.

See: Freeriding; Institutional Investor; NASD; Rules Of Fair Practice; Withholding

Immediate-Or-Cancel Order (IOC)
A limit order to buy or sell a security that requires all or part of the order to be executed immediately. Any part of the order that is not executed, is automatically canceled. An IOC order is usually for a significant share quantity.

See: Fill Or Kill Order; Limit Order; Orders

Immediate Payment Annuity
Annuity contract purchased with a single payment and a pay-out plan that starts immediately. Payments, usually on a monthly basis, are either for a specified time or until the annuitant passes away.

See: Annuitant; Annuitize; Annuity

Impaired Capital
Total capital that is less than the par value of the corporation's capital stock.

See: Capital Stock; Deficit Net Worth; Par

Imputed Interest
Interest that is considered to have been paid although no actual payment was made. A zero coupon bond, for instance, has imputed annual interest that the IRS requires the bondholder to report.

See: Zero Coupon Security