22.26 ndian onom
iifcl invisible hAnD
The India Infrastructure Finance company Ltd A term coined by Adam Smith (in his magnum
(IIFCL), a Government of India company set up opus The Wealth of Nations, 1776) to denote
in 2006 to promote public sector investments and the way in which the market mechanism (i.e.,
public-private partnerships (PPPs) in all areas of the price system) coordinates the decisions of
infrastructure except the telecommunication. buyers and sellers without any outside conscious
involvement. For him this maximises individual
inferior proDuct welfare.
The good or service for which the income elasticity
of demand is negative (i.e., as income rises, buyers
go to purchase less of the product). For such An IPO or initial public offering refers to the
products, a price cut results into lesser demands issue of shares to the public by the promoters of
by the buyers. a company for the first time. The shares may be
made available to the investors at face value of
inflAtion the share or with a premium as per the perceived
market value of the share by the promoters. The
For all types of inflation see the chapter with the IPO can be in the form of a fixed price portion
same title. or book building portion. Some companies offer
only demat form of shares, others offer both demat
insiDer trADing and physical shares.
A stock market terminology which means The performance of an IPO depends on
transactions of shares by the persons having access many factors such as the promoter’s track record,
to confidential informations which are not yet experience in running the business, risk factors
public—such persons stand to gain financially listed in the offer document, nature of industry,
out of this knowledge (the person might be government policies associated with the industry
an employee, director, etc. of the share issuing performance of that sector in the previous years,
company or the merchant bank or the book and also any available forecasts for the industry for
runner to the issue, etc.). Such kind of trading in the near future.
stocks is illegal all over the world.
Here ‘I-S’ stands for ‘investment saving’. This
The situation when the liabilities of an individual graphic schedule displays the combinations of
or a firm to creditors exceeds its assets—inability levels of national income and interest rate where
to pay the liabilities from the assets. Also known the equilibirium condition for the real economy
as bankruptcy. (investment = savings) holds.
inventory islAmic bAnking
The stocks of finished goods, goods under the It is banking practiced as per the Islamic principle
production process and raw materials held by a as prescribed in the shariah known as Fiqh al-
firm. Muamalat (Islamic rules on transaction). The