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| | | | 1. | IOU | (I Owe You) A promise of money, goods, services, or other items of value, which may be either written or verbal. It is commonly held that the name derives from the phonetic pronunciations of the respective letters, which sound like the phrase "I owe you". An IOU is less formal than a contract such as a promissory note, and, unless in the form of a written document stating that the value discussed will be repaid within a certain time, is generally not held to be legally binding (in addition | | 2. | IPO | (Initial Public Offering) The first sale of a company's common shares to public investors, any other issuance by the company being called a Secondary Market Offering. The company will usually issue only primary shares, but may also sell secondary shares. Typically, a company will hire an investment banker to underwrite the offering and a corporate lawyer to assist in the drafting of the prospectus. The sale of stock is overseen by financial regulators and where relevant by a stock | | 3. | IRR | (Internal Rate of Return) The discount rate that gives a net present value (NPV) of zero. The NPV is calculated from an annualized cash flow by discounting all future amounts to the present. See also: NPV | |
