The Letter I....IPO

Income stock-a stock that pays higher than average dividends.

Index Fund-A mutual fund which attempts to mimic the price performance of a specific index. This type of fund typically holds the same securities as those comprising the targeted index and should provide a return similar to the index. The major indexes (with the big 5 in bold are):

S&P 500

Nasdaq 100

Dow Jones Industrial Average (Go here to see the 10 worst point losses in Dow history)

Dow Jones Transports

Dow Jones Utilities (45.50% return in 2000 to lead all indexes)

Russell 2000

Wilshire 5000

You can learn a lot more on this subject by visiting IndexFunds.com.

Initial Public Offering (IPO)-the first time a company issues stock to the public. This is often called going public. Hoovers runs the IPO Central website. They have a database that can be used to research past, present & future IPOs. You can get a weekly IPO Update from them by signing up at this link.

In-Kind-when eligible investments in an account are moved directly to another account without first being sold and transferred as cash. The investments may also be delivered in certificate form to the account holder.

Inverted yield curve-a chart that shows long-term debt instruments having lower yields than short-term debt instruments.

Irrevocable Trust-trust that can not be changed or terminated by the one who created it without the approval of the beneficiary.

Updated 3/12/01