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
                                                              ipo
     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.
                                                              i-s scheDule
        insolvency
                                                          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