We are independent & ad-supported. We may earn a commission for purchases made through our links.

Advertiser Disclosure

Our website is an independent, advertising-supported platform. We provide our content free of charge to our readers, and to keep it that way, we rely on revenue generated through advertisements and affiliate partnerships. This means that when you click on certain links on our site and make a purchase, we may earn a commission. Learn more.

How We Make Money

We sustain our operations through affiliate commissions and advertising. If you click on an affiliate link and make a purchase, we may receive a commission from the merchant at no additional cost to you. We also display advertisements on our website, which help generate revenue to support our work and keep our content free for readers. Our editorial team operates independently from our advertising and affiliate partnerships to ensure that our content remains unbiased and focused on providing you with the best information and recommendations based on thorough research and honest evaluations. To remain transparent, we’ve provided a list of our current affiliate partners here.

In Finance, what is an Indication of Interest?

Malcolm Tatum
Updated Feb 16, 2024
Our promise to you
WiseGEEK is dedicated to creating trustworthy, high-quality content that always prioritizes transparency, integrity, and inclusivity above all else. Our ensure that our content creation and review process includes rigorous fact-checking, evidence-based, and continual updates to ensure accuracy and reliability.

Our Promise to you

Founded in 2002, our company has been a trusted resource for readers seeking informative and engaging content. Our dedication to quality remains unwavering—and will never change. We follow a strict editorial policy, ensuring that our content is authored by highly qualified professionals and edited by subject matter experts. This guarantees that everything we publish is objective, accurate, and trustworthy.

Over the years, we've refined our approach to cover a wide range of topics, providing readers with reliable and practical advice to enhance their knowledge and skills. That's why millions of readers turn to us each year. Join us in celebrating the joy of learning, guided by standards you can trust.

Editorial Standards

At WiseGEEK, we are committed to creating content that you can trust. Our editorial process is designed to ensure that every piece of content we publish is accurate, reliable, and informative.

Our team of experienced writers and editors follows a strict set of guidelines to ensure the highest quality content. We conduct thorough research, fact-check all information, and rely on credible sources to back up our claims. Our content is reviewed by subject matter experts to ensure accuracy and clarity.

We believe in transparency and maintain editorial independence from our advertisers. Our team does not receive direct compensation from advertisers, allowing us to create unbiased content that prioritizes your interests.

Also known simply as an IOI, an indication of interest is a term that is used in financial circles to indicate the level of interest that a buyer has in making a purchase. The term is most commonly utilized in reference to the purchase of securities, but may also be used in regard to investments such as real estate. While helpful in gauging the degree of interest that a stock offering or other investment strategy is generating, it is important to note that an indication of interest is not considered legally binding. For this reason, it should not be considered as a commitment on the part of the investor to actually make a purchase.

When used in reference to stock options, an indication of interest is often associated with an IPO or initial public offering of new shares of stock. The interest may be expressed at any point in the preparatory process for the launch of the offering, even during whatever registration process must be completed with a governmental regulatory agency before the shares can actually be offered. This does not present a conflict of any type, since the IOI is not a formal bid or offer to purchase. The indication of interest alerts the issuer of the new shares that the investor is interested in considering the investment opportunity, when and if it is eventually approved and the offering does take place.

When the investor does extend an indication of interest, the broker who is working on the IPO can provide the investor with the preliminary prospectus related to the impending offering. The prospectus will contain all the background and general information that the investor will need to determine if he or she wishes to be notified when the registration process is complete and the offering is scheduled for launch. This allows the investor to make arrangements to participate in the purchase process once the shares are available, and thus stand a better chance of securing the number of shares desired.

The use of an indication of interest in regard to real estate works in much the same manner. An investor will make it known that he or she has an interest in a given property that is anticipated to be on the market in the near future. The owner of the property can provide the investor with data related to the condition and status of the property, including information on the current status of taxed owed, and the condition of the wiring, plumbing, and foundation. If the investor is still interested after going over these preliminary documents, he or she can request to be notified when the property is actually placed on the market.

WiseGEEK is dedicated to providing accurate and trustworthy information. We carefully select reputable sources and employ a rigorous fact-checking process to maintain the highest standards. To learn more about our commitment to accuracy, read our editorial process.
Malcolm Tatum
By Malcolm Tatum , Writer
Malcolm Tatum, a former teleconferencing industry professional, followed his passion for trivia, research, and writing to become a full-time freelance writer. He has contributed articles to a variety of print and online publications, including WiseGEEK, and his work has also been featured in poetry collections, devotional anthologies, and newspapers. When not writing, Malcolm enjoys collecting vinyl records, following minor league baseball, and cycling.

Discussion Comments

Malcolm Tatum

Malcolm Tatum


Malcolm Tatum, a former teleconferencing industry professional, followed his passion for trivia, research, and writing...
Read more
WiseGEEK, in your inbox

Our latest articles, guides, and more, delivered daily.

WiseGEEK, in your inbox

Our latest articles, guides, and more, delivered daily.