G A NASDAQ stock symbol specifying that it is the first preferred bond of the company.
Gain An increase in the value of an asset or property. A gain is measured as the amount of capital realized from selling a good at a price higher than the original purchase price.
Gambling Income Any income that is the result of games of chance or wagers upon events with uncertain outcomes (gambling). This income is subject to taxation.
Gambling Loss A loss resulting from games of chance or wagers upon events with uncertain outcomes (gambling). These losses can only be claimed against gambling income.
Game Theory A model of optimality taking into consideration not only benefits less costs, but also the interaction between participants.
Gamma The rate of change for delta with respect to the underlying asset's price.
Gamma Neutral An asset portfolio whose delta rate of change is zero.
Gann Angles Created by W.D. Gann, a method of predicting price movements through the relation of geometric angles in charts depicting time and price.
Gap When the price of a stock moves very sharply up or down with no trading in between. Therefore, the chart shows a break between the prices (no line connecting).
Garbatrage An increase in price and trading volume in a particular sector of the economy that results from a recent takeover creating a change in sentiment towards the sector. Also known as rumortrage.
Garnishment Money withheld from an individual's paycheck and remitted to another party, usually a creditor.
Gas Guzzler Tax An additional tax on the sale of vehicles that have poor fuel economy.
Gatekeeper Requirements that must be met before an individual can qualify for a long-term care plan. A person must qualify for the plan's benefits before he or she can be paid out.
Gather in the Stops A trading strategy used to drive down a stock's price through the transaction of large sell orders.
Gazelle Company A company growing at an annual rate of 20% or more.
Gazump A situation in which the price for real estate or land is raised to a higher price than what was previously verbally agreed upon.
Gazunder When a buyer reduces his or her bid for a property before the transaction has been signed and finalized.
GBP In currencies, this is the abbreviation for the British Pound.
GDP Gap The forfeited output of an country's economy resulting from the failure to create sufficient jobs for all those willing to work.
GDP Price Deflator An economic metric that accounts for inflation by converting output measured at current prices into constant-dollar GDP. The GDP deflator shows how much a change in the base year's GDP relies upon changes in the price level. Also known as the "GDP implicit price deflator."
Gearing This is the ratio of long-term funds with fixed interest that makes up a firm's capital. It describes the level of a company's debt compared to equity capital in percentage form.
Gearing Ratios A general term given to leverage ratios that express the capital for a firm.
General Agreement on Tariffs and Trade - GATT An agreement signed in 1947, whose purpose was to promote global trade between members through a reduction in tariffs.
General Collateral Financing Trades - GCF General collateral repurchase agreements executed on a blind broker basis through the Government Securities Clearing Corporation.
General Depreciation System The most common system used for calculating depreciation.
General Ledger A company's accounting records. This formal ledger contains all the financial accounts and statements of a business.
General Obligation Bond - GO A municipal bond backed by the credit and "taxing power" of the issuing jurisdiction, rather than the revenue from a given project.
General Partner A partner in a business who has unlimited liability.
General Partnership A arrangement by which partners conducting a business jointly have unlimited liability, which means their personal assets are liable to the partnership's obligations.
Generally Accepted Accounting Principles - GAAP The common set of accounting principles, standards and procedures. GAAP is a combination of authoritative standards (set by policy boards) and the accepted ways of doing accounting.
Generally Accepted Auditing Standards - GAAS A set of guidelines used by auditors when conducting audits on a company's finances. GAAS has created a systematic guideline for auditors to follow, ensuring the accuracy, consistency and verifiability of auditors' actions and reports.
Gentleman's Agreement An unwritten agreement or transaction that is only backed by the honor of the parties involved.
GHC In currencies, this is the abbreviation for the Ghanian Cedi.
Ghosting An illegal practice whereby two or more market makers collectively attempt to influence and change the price of a stock.
Gibson's Paradox An economic paradox made popular by J. M. Keynes, it describes the correlation between interest rates and the price level.
Gift Property, money, or an asset that one person transfers to another while receiving nothing in return.
Gift Tax A federal tax to be paid if a person receives gifts exceeding a set dollar amount per year.
Gilt Edged Bond A bond that is issued by a blue chip company. These bonds are considered to be high grade, with little risk of interest payment interruption or default.
Gilt Fund A mutual fund that invests in several different types of medium and long-term government securities in addition to top quality corporate debt. Gilts originated in Britain.
Gilts Risk-free bonds issued by the British government. They are the equivalent of U.S. Treasury securities.
Ginnie Mae - Government National Mortgage Association GNMA A wholly-owned U.S. government corporation within the U.S. Department of Housing and Urban Development (HUD). The main focus of Ginnie Mae is to ensure liquidity for U.S. government-insured mortgages including those insured by the Federal Housing Administration (FHA), the Veterans Administration (VA) and the Rural Housing Administration (RHA). The majority of mortgages securitized as Ginnie Mae MBS are those guaranteed by FHA. FHA mortgagors are typically first-time home buyers and low-income borrowers.
Ginzy Trading An illegal trading practice used by floor brokers. It is considered to be non-competitive, as it involves the execution of large trades at different prices.
GIP In currencies, this is the abbreviation for the Gibraltar Pound.
Give Up The action of a broker excluding his or her name in a securities transaction that involves two other brokers.
Glass-Steagall Act An Act passed by Congress in 1933, that prohibited commercial banks from collaborating with full-service brokerage firms or participating in investment banking activities.
Global Bond Bonds that can be offered within the euromarket and several other markets simultaneously.
Global Depository Receipt - GDR 1. A bank certificate issued in more than one country for shares in a foreign company. The shares are held by a foreign branch of an international branch. The shares trade as domestic shares, but are offered for sale globally through the various bank branches.
2. A financial instrument used by private markets to raise capital denominated in either U.S. dollars or Euros.
Global Fund A mutual fund that can invest in companies located anywhere in the world, including your own country.
Global Investment Performance Standards - GIPS Ethical standards to be used by investment managers for creating performance presentations that ensure fair representation and full disclosure of investment performance results.
Global Macro Strategy A hedge fund strategy that bases its holdings--such as long and short positions in various equity, fixed income, currency, and futures markets--primarily on overall economic and political views of various countries (macroeconomic principles).
Global Registered Share A share issued and registered in multiple markets around the world.
Gold Certificate A certificate of ownership that gold investors hold instead of storing the actual gold bullion.
Gold Fix The setting of gold prices, twice a day, by the five members of the London gold pool. This rate is used as a benchmark for pricing the majority of global gold products and derivatives.
Gold Standard A monetary system in which a country's currency unit is freely convertible into fixed amounts of gold.
Goldbrick Shares A stock that bears the surface appearance of quality and worth, but is in fact worth very little.
Golden Boot An incentive encouraging employees near or at the age of retirement to retire voluntarily.
Golden Cross A crossover involving a security's short-term moving average (such as 20-day moving average) breaking above its long-term moving average (such as 50-day moving average) or resistance level.
Golden Handcuffs An incentive given to existing employees in hopes that they will decide to stay with the company.
Golden Hello A signing bonus offered by a securities firm to a key executive from a competing firm.
Golden Life Jacket An exceptional compensation package offered by an acquiring company to the top executives of the company being acquired. The offer is meant to keep these executives interested in retaining their positions.
Golden Parachute Lucrative benefits given to top executives in the event that a company is taken over by another firm, resulting in the loss of their job. Benefits include items such as stock options, bonuses, severance pay, etc.
Golden Share A type of share that gives its shareholder veto power over changes to the company's charter.
Goldilocks Economy A term referring to the U.S. economy of the mid- to late-1990s. It was "not too hot, not too cold, but just right."
Good 'till Canceled - GTC An order to buy or sell a security that is good until the investor decides to cancel it.
Good Faith Money The deposit of money into an account when a futures contract is bought or sold.
Good This Month - GTM A limit order placed with a broker that will last until the end of the current month.
Good Through An order to buy or sell a security or commodity at a certain price for a certain period of time, unless it is canceled or changed.
Goodwill The excess of the purchase price over the fair market value of an asset. Accountants record this as a 'write off' in the financial report.
Gordon Growth Model A model for determining the intrinsic value of a stock, based on a future series of dividends that grow at a constant rate. Given a dividend per share that is payable in one year, and the assumption that the dividend grows at a constant rate forever (in perpetuity), the model solves for the present value of the infinite series of future dividends. Where: D = Expected dividend per share one year from now. k = Required rate of return for equity investor. G = Growth rate in dividends (in perpetuity).
Gorilla A company that dominates an industry without having a complete monopoly.
Government Security A government debt obligation (local or national) backed by the credit and taxing power of a country with very little risk of default.
Government-Sponsored Enterprise - GSE Privately held corporations with public purposes created by the U.S. Congress to reduce the cost of capital for certain borrowing sectors of the economy. Members of these sectors include students, farmers and homeowners.
Grading Certificate A document, issued by inspectors or approved graders, that formally signifies the quality of a commodity.
Graduated Lease A lease (usually long-term) that is periodically adjusted to reflect the appraised value of the asset being leased.
Grandfather Clause An exemption that allows persons or entities to continue with an activity they were engaging in before it became illegal through a change in regulation.
Grantor A seller of either call or put options who profits from the premium for which the options are sold. Synonymous with option writer.
Graveyard Market The period near the end of a prolonged bear market wherein long-time investors have taken large losses and new investors are unwilling to buy in.
Gray Knight A second, unsolicited bidder in a corporate takeover. A gray knight enters the scene in order to take advantage of any problems between the first bidder and the target company.
Gray Market 1. An unofficial market where new issues of shares are bought and sold before they officially become available for trading on the stock exchange.
2. The sale of goods by unauthorized dealers.
Greater Fool Theory The theory that it is possible to make money by buying overvalued securities because there will almost always be someone else (a greater fool) who is willing to purchase these security at an even higher price.
Greeks Refers to the Greek letters used in options trading.
Green Field Investment When a company or government invests money to construct a project in basic components.
Greenback A slang term for American paper dollars.
Greenmail - Green Mail A situation in which a large block of stock is held by an unfriendly company. This forces the target company to repurchase the stock at a substantial premium to prevent a takeover.
Greensheet An information circular that is passed around an underwriting firm that indicates the features of a new issue.
Greenshoe Option An option that allows the underwriting of an IPO to sell additional shares to the public if the demand is high.
Greenspan Put A colloquial term used to describe the actions of the Chairman of the Federal Reserve Board in preventing significant and sustained market downturns.
Grey Market An informal market that develops for a newly issued security. The trading in this market will indicate at what price the security will begin to trade when it is listed.
Gridlock A government, business or institution's inability to establish change due to either complex or conflicting procedures within the administrative framework.
Gross Domestic Product - GDP The monetary value of all the goods and services produced by an economy over a specified period. It includes consumption, government purchases, investments, and exports minus imports.
Gross Income 1. An individual's total personal income before deductions.
2. A company's revenue minus cost of goods sold. Also called "gross margin."
Gross National Product - GNP An economic statistic that includes GDP, plus any income earned by residents from their overseas investments, minus income earned within the domestic economy by overseas residents.
Gross Processing Margin - GPM The difference between the cost of a raw commodity and the income it generates once sold as a finished product.
Gross Production Tax A state tax imposed primarily on mining companies for each unit mined.
Gross Sales A measure of overall sales that isn't adjusted for customer discounts or returns, calculated simply by adding all sales invoices, and not including operating expenses, cost of goods sold, payment of taxes, or any other charge.
Gross Spread The difference between the underwriting price received by the issuing company and the actual price offered to the public.
Group of Eight - G-8 Eight of the world's economically leading countries that in a cooperative effort meet periodically to address international economic and monetary issues.
Group of Five - G-5 Name given to the five industrialized nations that meet periodically to achieve a cooperative effort on international economic and monetary issues.
Group of Seven - G-7 Seven of the world's leading countries that meet periodically to achieve a cooperative effort on international economic and monetary issues.
Growth at a Reasonable Price - GARP An approach to investing that combines the two popular strategies of value and growth investing. It seeks stock that has both growth potential and a reasonable price.
Growth Fund A diversified portfolio of stocks that has capital appreciation as its primary goal, and thereby invests in companies that reinvest their earnings into expansion, acquisitions, and/or research and development.
Growth Industry A sector of the economy experiencing a higher-than-average growth rate.
Growth Rates The compounded annualized rate of growth of a company's revenues, earnings, dividends, or other figures.
Growth Stock Shares in a company whose earnings are expected to grow at an above average rate relative to the market.
GTQ In currencies, this is the abbreviation for the Guatemala Quetzal.
Guaranteed Bond In Canada, bonds that are issued by crown corporations but guaranteed by an appropriate government.
Guaranteed Investment (Interest) Certificate - GIC A deposit investment security sold by Canadian banks and trust companies. They are often bought for retirement plans because they provide a low-risk fixed rate of return. The principal is at risk only if the bank defaults.
Guaranteed Investment Contract - GIC Insurance contracts that guarantee the owner principal repayment and a fixed or floating interest rate for a predetermined period of time.
Guaranteed Stock Common or preferred stock whose dividends are guaranteed.
Guarantor A person who guarantees to pay for someone else's debt if they default on their loan obligation.
Guardian IRA An IRA held in the name of a legal guardian or parent on behalf of either a child under the age of 18-21 (depending on state legislation) or an individual who is incapable of handling finances due to physical or mental disability.
Guidance Information that a company provides as an indication or estimate of their future earnings. Also known as "earnings guidance."
Guilder Share - New York Share Shares representing Dutch companies that are not permitted to trade outside of national borders.
Guilt-Edged Investment A transaction that makes money by unethical means. Culprits supposedly feel guilty having made money in such an unscrupulous way.
Gun Jumping 1. In the context of an IPO, public statements illegally soliciting orders to buy a new issue made prior to the completion of SEC registration.
2. Trading securities on the basis of information that has not yet been revealed to the public.
Guns and Butter Curve The classic economic example of the "Production Possibility Curve" that demonstrates the idea of opportunity cost. In a theoretical economy with only two goods, a choice must be made between how much of each good to produce. As an economy produces more guns (military spending) it must reduce its production of butter (food), and vice versa.
Gunslinger A high-strung portfolio manager who invests in very high risk stock looking for high returns.
GUST Restatement As a result of changes to tax law in the United States, employers and retirement plan sponsors are required to complete new Adoption Agreements and restate their prototype qualified plans. In order for plans to maintain their qualified status, they must meet different statutory regulations.
Gut Spread An option strategy created by selling an in-the-money put at the same time as an in-the-money call.
GYD In currencies, this is the abbreviation for the Guyanese Dollar.
Gypsy Swap An exchange of restricted shares for freely exchangeable shares between two separate parties.