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Financial dictionary terms starting with “g”
G7 bonds are generally regarded as less risky than bonds issued by other countries. Accordingly, they are often more liquid than sovereign debt from other countries and are sometimes preferred by conservative income investors who want some internatio See More.
A gadfly is a shareholder who publicly criticizes a company's executives at the annual shareholders meeting. See More.
A gain, also called a capital gain, is an increase in the value of an investment. It is the difference between the purchase price (the basis) and the sale price of an asset. Thus the formula for gain is: Sale Price - Purchase Price = Gain Note See More.
If you substitute "stock" for "football team" in the above example, you'll see why the gambler's fallacy is prevalent in investing, where investors often think that when a stock is reporting positive earnings quarter after qua See More.
A gambling loss is any money lost in lottery tickets, slot machines, table games (craps, poker, blackjack, etc.), bingo games, racing bets and keno. See More.
Game changers are disruptive. They are sometimes crazy ideas. But if they work, they can be wildly lucrative. Unfortunately, they don't come along often. See More.
Game theory is a tool used to analyze strategic behavior by taking into account how participants expect others to behave. Game theory is used to find the optimal outcome from a set of choices by analyzing the costs and benefits to each independent pa See More.
As the example shows, it's understandable that some lenders require gap insurance. If John doesn't have it, he'll only be able to repay part of the loan (and may default on the rest) if he totals the RV. The fact that John has an interest See More.
Auto body shops can be dangerous places. Accordingly, garage liability covers this very special kind of risk. However, it usually doesn't cover damage that the auto body center does to the cars in its care (that is usually covered by a different See More.
Also called wage execution, a garnishment is a process under which money owed or paid to a borrower is given to a creditor instead. See More.
The purpose of the gas guzzler tax is to discourage the manufacture of inefficient cars. The sticker on a new car should disclose the amount of gas guzzler tax that a manufacturer has paid on a car. Trucks, SUVs and minivans are not subject to the ta See More.
GDP gap refers to the disparity between an economy's actual total output and its possible total output. See More.
GDP per capita is a country's gross domestic product (GDP) per person. Essentially, this measures the amount of goods and sales a country produced per person, on average. See More.
G&A expenses appear on the income statement. They are not part of the cost of goods sold but can constitute a significant portion of a company's expenses. Because this category often houses the salaries of the top executives, as well as many See More.
A general ledger (GL) is a consolidated record of a company's accounting entries. See More.
A general obligation bond is a municipal debt issue that is secured by a broad government pledge to use its tax revenues to repay the bond holders. See More.
A general partner is a member of a partnership that can incur debt or obligations on behalf of the partnership and is personally liable for those debts or obligations. See More.
Generally Accepted Accounting Principles (GAAP) is a framework of accounting standards, rules and procedures defined by the professional accounting industry, which has been adopted by nearly all publicly traded U.S. companies. See More.
Generation gaps happen all the time. In the business world, understanding them is crucial because without knowledge of how a market thinks, it is much harder to provide goods and services that fit needs and lifestyles. See More.
Generic brands are often cheaper than "name brands." Some generic products are more viable and profitable than others; this is particularly the case for commodity products (such as milk) and products that have low brand loyalty. For instance, See More.
A gift tax is a federal tax on anything of value that one person gives to another. See More.
A gifting phase is when a person begins planning for or actively begins giving away wealth as part of his or her estate planning. See More.
Gilts are bonds issued by the British government. India's government bonds are also called gilts. See More.
Because Ginnie Mae guarantees the MBS and effectively assumes the lending risk involved in the mortgage business, lenders are able to resell Ginnie Mae mortgages easily. The sale of these mortgages provides lenders with funds to make additional mortg See More.
The Glass-Steagall Act was passed by Congress in 1933. It prohibited commercial banks from conducting brokerage or investment banking activities. The act was largely a product of the Great Depression, during which one of every five banks failed. In 1 See More.
Global Investment Performance Standards (GIPS) are ethical standards for asset-management companies. They were established by the Association for Investment Management Research. See More.
A global recession occurs when global gross domestic product growth is 3% or less. See More.
Globalization is the integration of national economies through trade, investment, capital flow, labor migration, and technology. See More.
Gnomes of Zurich is a slang, and often derogatory, term referring to Swiss bankers. See More.
A go shop period is a window of time during which public companies can solicit competing purchase offers. See More.
A godfather offer is a tender offer that is so generous that turning it down would be a breach of fiduciary duty. See More.
Going concern refers to the assumption that a company has the resources to continue operating in the foreseeable future. A bankrupt company or a company near bankruptcy is the opposite of a going concern. See More.
The term going private refers to a company's departure from listing shares on any exchange. It is the opposite of going public. See More.
Going public refers to a company's first issuance of stock on the open market. In most cases, the offering, called an initial public offering (IPO), makes the company's stock accessible to a large group of public investors for the first time. See More.
The AMEX Gold BUGS Index (also known as HUI) is one of two major gold indices that dominate the market. BUGS is an acronym for "Basket of Unhedged Gold Stocks." The index was introduced on March 15, 1996.[InvestingAnswers Feature: 5 See More.
A gold certificate is a piece of paper that entitles the bearer to a certain amount of actual gold. See More.
A gold fix occurs when the The London Gold Market Fixing Ltd. sets the price of gold. See More.
A gold fund is an exchange-traded fund (ETF) or mutual fund that invests in gold. See More.
A gold option gives the holder the right, but not the obligation, to purchase or sell a specific quantity of gold at a specified strike price on the option's expiration date. See More.
The Gold Reserve Act of 1934 nationalized gold and fixed its price. See More.
The gold standard is a monetary system in which the representative currency is based on a fixed amount of gold held by the central government. See More.
The gold-silver ratio is measure of how many ounces of silver it takes to buy an ounce of gold. See More.
Goldbrick shares are shares of stock that appear valuable but are actually worthless or worth very little. See More.
Goldbricker refers to coating something with gold so as to pass it off for something valuable, though colloquially, the term refers to an unproductive person. See More.
A golden boot is a financial package meant to encourage an employee to retire early. See More.
A golden bungee is part of an executive's agreement that provides significant financial benefits to the executive upon termination as well as the opportunity to "spring back up" into a new position after termination. See More.
A golden coffin is slang for the portion of an executive contract that goes into effect should the executive die. See More.
In the trading world, a golden cross occurs when a stock's short-term moving average rises above its long-term moving average. See More.
Golden handcuffs are financial incentives designed to keep talented employees from leaving a company. See More.
A golden handshake is essentially a severance agreement between an employee and employer. See More.
A golden life jacket is a compensation package offered by an acquirer to executives of the company it is acquiring. It is the same as a stay bonus. See More.
A golden parachute is an agreement between a company and an employee (usually a high level executive) that provides significant financial benefits to the employee upon termination. See More.
The golden rule is very simple: treat people the way you want to be treated. In the business world, it also refers to fundamental principles of government spending: cover current spending with existing taxes and borrow only to fund investments that b See More.
A golden share gives the holder the right to veto changes to a company's charter. Golden shares exist primarily in U.K.-based companies. See More.
A Goldilocks Economy is one which enjoys sustained economic growth and low inflation. This balance is attractive to investors because it allows for a market-friendly monetary policy from the Federal Reserve Bank. See More.
Goldman 360 is an online portal to Goldman Sachs's investment management system. See More.
The Goldman Sachs Commodity Index (GSCI) is a commodities index now owned by Standard & Poor's. See More.
Good 'til Canceled, or GTC, is used to refer to an order to buy or sell a stock at a set price that remains in effect until the investor cancels the order or the trade is completed. See More.
Good delivery occurs when all the requirements for transferring title to a security from the seller to the buyer have been met. See More.
A good faith estimate is a written estimate of the fees due at closing for a mortgage. See More.
Good faith money is money a buyer uses to prove to a seller that he or she intends to complete a transaction. In real estate, good faith money is also called earnest money. It is not the same as a down payment. See More.
Good this month refers to a type of trading order is automatically canceled if it is not filled by the end of the month in which the client makes the order. See More.
Good this week is a type of trade order that is automatically canceled if it is not filled by the end of the week in which the client makes the order. See More.
A good through order is a trade order with a deadline. Usually, it is a stop loss or limit order. See More.
Goodness of fit (also known as a chi-square goodness of fit) is a statistical term referring to how far apart the expected values of a financial model are from the actual values. See More.
A goods and services tax (GST) is simply a tax on goods and services for domestic consumption. This tax system is in place in about 160 countries, including Canada, India, Vietnam, Australia, United Kingdom, Spain, Italy, Brazil, See More.
Also known as work in process (WIP), goods in process are the component of a company's inventory that is partially completed. See More.
Goodwill is the excess of purchase price over the fair market value of a company's identifiable assets and liabilities. See More.
Generally, a goodwill impairment occurs when a company A) pays more than book value for a set of assets (the difference is the goodwill), and B) must later adjust the book value of that goodwill. See More.
The goodwill-to-assets ratio describes the percentage of a firm's total assets that can be explained by the amount of goodwill on the balance sheet. See More.
Gordon Gekko is a character from the 1987 Oliver Stone movie Wall Street and the 2010 sequel, Wall Street: Money Never Sleeps. Michael Douglas played Gordon Gekko in both movies. See More.
The Gordon Growth Model, also known as a version of the dividend discount model (DDM), is a method for calculating the intrinsic value of a stock, exclusive of current market conditions. The model equates this value to the present value of a stock's See More.
The Government Accountability Office (GAO) investigates, with congressional approval, the federal government's spending. See More.
Founded in 1921, the Government Accounting Office (GAO) is an independent, nonpartisan agency that studies how the federal government spends taxpayer money. See More.
Because the Government National Mortgage Association guarantees mortgage-back securites and effectively assumes the lending risk involved in the mortgage business, lenders are able to resell GNMA backed mortgages easily. The sale of these mortgages p See More.
In the US, government sponsored enterprises, or GSEs, are quasi-governmental, privately-held entities established to improve, and at times make possible, the flow of credit to specific sectors of the economy or to otherwise provide essential services See More.
A grace period is a period of time, usually about 10 days, during which a past due amount can be paid with little or no penalty. See More.
Graduated vesting occurs when a financial instrument or account becomes wholly owned by an investor over time. See More.
A grandfather clause is a clause that is included as part of a new law that exempts specific parties from the law due to practices that were in place prior to the law's implementation. See More.
In the business world, a grant usually refers to a stock option grant. However, the term can also refer to federal funding for research, business ventures or partnerships. See More.
In the investing world, a gray market exists when people begin trading shares that have not been issued yet. In the business world, a gray market is the novel but not always illegal process of obtaining goods or services. See More.
The Great Depression is a severe global economic contraction that began in the United States and spread throughout the rest of the world in the 1930s. See More.
A green shoe option is a clause contained in the underwriting agreement of an initial public offering (IPO). Also known as an over-allotment provision, it allows the underwriting syndicate to buy up to an additional 15% of the shares at the offering See More.
Greenback is a slang term for the U.S. dollar. This name is derived from the green color of U.S. paper currency. See More.
Greenmail is an acquisition tactic whereby the acquirer attempts to obtain a controlling interest in a target by buying shares at a premium from the target's shareholders. See More.
Greenwashing is the act of misleading customers and potential customers into believing that a product or service is environmentally friendly. See More.
Gross Domestic Product (GDP) is the broadest quantitative measure of a nation's total economic activity. More specifically, GDP represents the monetary value of all goods and services produced within a nation's geographic borders over a spe See More.
Also called gross income, gross earnings are income before taxes or adjustments. In the accounting world, gross earnings are usually the same thing as gross profit (that is, revenue minus cost of goods sold). See More.
Gross income is income before taxes or adjustments. In the accounting world, gross income is usually the same thing as gross profit (that is, revenue minus cost of goods sold). See More.
Gross interest is the amount of interest an account or investment earns before deducting taxes, fees or other charges. It is expressed as a percentage. See More.
Gross margin is a required income statement entry that reflects total revenue minus cost of goods sold (COGS). Gross margin is a company's profit before operating expenses, interest payments and taxes. Gross margin is also known as gross profit See More.
Gross national product (GNP) is a broad measure of a nation's total economic activity. GNP is the value of all finished goods and services produced in a country in one year by its nationals. See More.
Gross profit is a required income statement entry that reflects total revenue minus cost of goods sold (COGS). Gross profit is a company's profit before operating expenses, interest payments and taxes. Gross profit is also known as gross ma See More.
Gross profit margin is a profitability ratio that measures how much of every dollar of revenues is left over after paying cost of goods sold (COGS). See More.
Gross receipts, also called gross sales, usually refers to a company's revenue before subtracting discounts and returns. See More.
Gross sales usually refers to a company's revenue before subtracting discounts and returns. See More.
Group banking is offered by some banks to incentivize a whole group of people, like employees of a company, to have a relationship with the banking institution. See More.
Groupthink is a psychological phenomenon whereby pressure within a group to agree results in failures to think critically about an issue, situation or decision. See More.
Growth at a reasonable price (GARP) is an investment strategy that combines tenets of both growth and value investing by finding companies that show consistent earnings growth but don't sell at overly high valuations. The term was populariz See More.
A growth company is characterized by a rate of growth higher than that of the overall economy. See More.
Growth stocks are fast-growing, higher-risk companies. They tend to be young. They offer a higher chance of higher returns and a higher chance of bankruptcy. See More.
In general, a guarantee is a promise to take responsibility for another company's financial obligation if that company cannot meet its obligation. The entity assuming this responsibility is called the guarantor. See More.
A guaranteed bond is a bond whose interest and principal payments are guaranteed by a third party. See More.
A guaranteed death benefit is a portion of an annuity that allows the investor's beneficiaries to receive a minimum amount of death benefits. See More.
A guaranteed investment contract (GIC) is an agreement between a contract purchaser and an insurance company whereby the insurance company provides a guaranteed rate of return in exchange for keeping a deposit for a fixed period of time. See More.
Guaranteed issuance refers to an insurer’s requirement to sell a product to a customer regardless of health status, age, gender, or other factors that might affect the customer’s use of health care or prospect of death. See More.
With a guaranteed loan, a party other than the borrower has promised to take responsibility if the borrower cannot make the payments. The entity assuming this responsibility is called the guarantor. See More.
In general, a financial guarantee is a promise to take responsibility for another company's financial obligation if that company cannot meet its obligation. The entity assuming this responsibility is the guarantor. See More.