The position of a chord when the fundamental (or base pitch of a chord) is not the lowest note. When the lowest note is the fundamental, the chord is said to be in root position. When the third of the chord is in the lowest voice of the music, the chord is a "first inversion", when the fifth of the chord is in the lowest voice, the chord is said to be a "second inversion".
See also root position, first inversion, second inversion.