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
A break between prices on a chart that occurs when the price of a stock makes a sharp move up or down with no trading occurring in between. Gaps can be created by factors such as regular buying or selling pressure, earnings announcements, a change in an analyst's outlook or any other type of news release.
Gap (in Price)
It denotes a day where the stock opens and trades several points above or below the previous day's trading range. It can be identified on a daily chart of a stock's price changes. There are two kinds of gaps: a break away that occurs just after a stock breaks out of a base, and an exhaustion gap that occurs after a stock has advanced for many weeks and is very extended from its most recent base and is close to topping in price. (Also, see Exhaustion gap)
Gap Risk
The risk that an investment's price will change from one level to another with no trading in between. Usually such movements occur when there are adverse news announcements, which can cause a stock price to drop substantially from the previous day's closing price.
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.
Gartley Pattern
In technical analysis, it is a complex price pattern based on Fibonacci numbers/ratios. It is used to determine buy and sell signals by measuring price retracements of a stock's up and down movement in stock price.
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 of driving down a stock's price by selling large amounts of stock in order to trigger preset stop-loss orders, which in turn enhances the decline of the stock.
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 the currency market, this is the abbreviation for the British pound.
GDP Gap
The forfeited output of a 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
A fundamental analysis ratio of a company's level of long-term debt to its equity capital and is expressed in percentage form.
A company with a high gearing - more long-term liabilities than shareholder equity - are considered speculative.
Gearing Ratio
A general term describing a financial ratio that compares some form of owner's equity (or capital) to borrowed funds. Gearing is a measure of financial leverage, demonstrating the degree to which a firm's activities are funded by owner's funds versus creditor's funds.
Gemology
The combined art and science of studying, cutting, valuing, buying and selling precious stones. Some of the most precious stones that gemologists deal in include diamonds, rubies, sapphires and emeralds.
Gemology is spelled gemmology outside of North America.
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 - GDS
The most commonly used modified accelerated cost recovery system (MACRS) for calculating depreciation. A general depreciation system uses the declining-balance method to depreciate personal property.
General Ledger
A company's accounting records. This formal ledger contains all the financial accounts and statements of a business.
General Market & Sectors Page
Found exclusively in Investor's Business Daily, this page includes large graphs of each of the major market indices, stacked on top of each other so you can easily identify trends and market divergences. Also included on this page are 'The Big Picture,' sector charts, and the IBD Mutual Fund Index.
General Market (and General Market Averages, General Market Indices)
Indices that represent the overall picture of the stock market's health. The most commonly known general market indices are the Dow Jones Industrial Average, the Nasdaq Composite, and the S&P 500.
General Market (and General Market Averages, General Market Indices)
Indices that represent the overall picture of the stock market's health. The most commonly known general market indices are the Dow Jones Industrial Average, the Nasdaq Composite, and the S&P 500.
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.
General Public Distribution
A type of primary market offering in which the securities being issued are available to anyone who has the ability to purchase them. This differs from conventional public distributions of securities in which underwriting investment banks sell large blocks of the issued securities to large investors.
Generally Accepted Accounting Principles - GAAP
The common set of accounting principles, standards and procedures that companies use to compile their financial statements. GAAP are a combination of authoritative standards (set by policy boards) and simply the commonly accepted ways of recording and reporting accounting information.
Generally Accepted Auditing Standards - GAAS
A set of systematic guidelines used by auditors when conducting audits on companies' finances, ensuring the accuracy, consistency and verifiability of auditors' actions and reports.
Generation-Skipping Trust
A type of legally binding trust agreement in which the contributed assets are passed down to the grantor's grandchildren, not the grantor's children. The generation to which the grantor's children belong skips the opportunity to receive the assets in order to avoid the estate taxes that would apply if the assets were transferred to them.
Gentleman's Agreement
An unwritten agreement or transaction backed only by the integrity of the counterparty to actually abide by the terms of the agreement. An agreement like this is not legally binding and could have a negative effect on business relationships if one party decides to default on their promise.
George Soros
Born in Budapest, Hungary, in 1930, George Soros is considered by many to be one of the world's greatest investors. A famous hedge fund manager, Soros managed the Quantum Fund, a fund that achieved an average annual return of 30% from 1970-2000. Besides his investing prowess, Soros is also known for his vast philanthropic activities, donating billions of dollars to various causes through the Soros Foundation.
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. Ghosting is used by corrupt companies to affect stock prices so they can profit from the price movement.
Gibson's Paradox
An economic observation made by J. M. Keynes during the period of the gold standard that there is a correlation between interest rates and the general price level. Keynes' finding, which he discusses in "A Treatise on Money" (1930), is a paradox because it is contrary to the view generally held by economists at the time, which was that interest rates are correlated to the rate of inflation.
Gift
Property, money or asset that one person transfers to another while receiving nothing in return.
Gift Tax
A federal tax applied to an individual giving anything of value to another person. For something to be considered a gift, the receiving party cannot pay the giver full value for the gift, but may pay an amount less than its full value. It is the giver of the gift who is required to pay the gift tax. The receiver of the gift may pay the gift tax, or a percentage of it, on the giver's behalf in the event that the giver has exceeded his/her annual personal gift tax deduction limit.
Gifting Phase
The stage in an investor's life where he or she seeks to use his or her accumulated wealth to provide for the current and future needs of family and friends, as well as to leave a mark on the world by funding charities of his or her choice through philanthropy. The investor's concerns during this phase shift from matters of capital accumulation to estate planning and tax minimization.
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 mortgage-backed securities are those guaranteed by FHA, which are typically mortgages for 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
A procedure in securities or commodities trading where the executing broker places a trade on behalf of another broker as if he/she actually executed the trade. This is usually done because a broker is too busy to place a trade for a client and asks another broker to place the trade for him/her. On the record books, the trade will not show the executing broker's information, but the broker to whom the client belongs. Thus, the broker of the client and the broker on the other side of the trade will receive the commission, while the executing trader will get nothing. This is a grey area of law governing reimbursement of brokers for services (e.g. research).
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 Crossing
A communication services company that filed for bankruptcy protection amid an accounting scandal where it had allegedly inflated earnings by using capacity swaps, among other things. Capacity swaps are the exchange of telecommunications capacity between carriers that is booked as revenue without money ever being exchanged.
Global Depositary 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 bank. 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. Global registered shares represent the same class of shares. Also known as a "global share".
Globalization
The tendency of investment funds and businesses to move beyond domestic and national markets to other markets around the globe, thereby increasing the interconnectedness of different markets. Globalization has had the effect of markedly increasing not only international trade, but also cultural exchange.
Globex
An electronic trading platform used for derivative, futures, and commodity contracts. Globex runs continuously, so it is not restricted by borders or time zones.
GMD
In currencies, this is the abbreviation for the Gambian Dalasi.
GNF
In currencies, this is the abbreviation for the Guinea Franc.
GNF
In currencies, this is the abbreviation for the Guinea Franc.
Gnomes of Zurich
A term used by British labor ministers during the 1964 Sterling Crisis to refer to Swiss banks.
Gnomes of Zurich
A term used by British labor ministers during the 1964 Sterling Crisis to refer to Swiss banks.
Going Concern
A term for a company that has the resources needed in order to continue to operate. If a company is not a going concern, it means the company has gone bankrupt.
Going Public
The process of selling shares that were formerly privately held to new investors for the first time. Otherwise known as an initial public offering (IPO).
Going-Concern Value
The value of a company as an ongoing entity. This value differs from the value of a company's assets if they were to be liquidated in that an ongoing operation has the ability to continue to earn profit, while a liquidated company does not.
Gold Bug
A person who is bullish on gold. Gold bugs believe that gold is still a stable source of wealth like it was during the years of the gold standard international currency system. A gold bug invests in gold for (what they perceive) as financial security in the event of a currency devaluation, and often also believe that the price of gold will continue to rise in the future. The term also refers to analysts who consistently recommend gold buys.
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 government allows its currency unit to be freely converted into fixed amounts of gold and vice versa. The exchange rate under the gold standard monetary system is determined by the economic difference for an ounce of gold between two currencies. The gold standard was mainly used from 1875 to 1914 and also during the interwar years.
Goldbrick Shares
A stock that bears the surface appearance of quality and worth, but is in fact worth very little.
Golden Boot
An inducement, using maximum incentives and financial benefits, for an older worker to take "voluntary" early retirement.
Golden Cross
A crossover involving a security's short-term moving average (such as 15-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 the acquiring company to the top executives of the company being bought. The offer is meant to keep those 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
An economy that is not so hot that it causes inflation, and not so cold that it causes a recession. This term is used to describe the U.S. economy of the mid- to late-1990s - it was "not too hot, not too cold, but just right."
Goldman Sachs Commodity Index - GSCI
A composite index of commodity sector returns which represents a broadly diversified, unleveraged, long-only position in commodity futures
Good 'Till Canceled - GTC
An order to buy or sell a security at a set price that is active until the investor decides to cancel it or the trade is executed. If an order does not have a good 'till canceled instruction then the order will expire at the end of the trading day the order was placed.
Good Delivery
The status of a security traded on an exchange when it meets a set of requirements for being in proper form for transfer of title to the buyer.
Good Faith Money
The deposit of money into an account by a buyer to show that they have the intention of completing the deal. In most cases, the deposit amount will be a percent of the amount owed.
The money in an account can also be known as "margin" or a "performance bond", depending on the type of transaction.
Good This Month - GTM
A limit order placed with a broker that will last until the end of the current month.
Good This Month - GTM
A limit order placed with a broker that will last until the end of the current month.
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 Purchases
Expenditures made in the private sector by all levels of government, such as when a government entity contracts a construction company to build office space or pave highways.
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.
Government-Sponsored Retirement Arrangement - GSRA
A Canadian retirement plan for individuals who are not employees of a local, provincial or federal government body, but who are paid for their services from public funds. This type of retirement plan is not registered with the Canadian Revenue Agency and therefore does not qualify for tax-deferred status.
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.
Grain Futures Act of 1922
A federal statute passed in 1922 by the U.S Government that established the restriction that all grain futures need to be traded on regulated futures exchanges. The act also required exchanges to make more information public and limit the amount of market manipulation.
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
1. A seller of either call or put options who profits from the premium for which the options are sold. Synonymous with option writer.
2. The creator of a trust, meaning the individual whose assets are put into the trust.
Graveyard Market
The period near the end of a prolonged bear market. In a graveyard market, long-time investors have taken large losses, while new investors prefer to stay liquid by sitting on the sidelines and keeping their money in cash or cash-equivalent securities until market conditions improve.
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 become officially available for trading on the stock exchange.
2. The sale or import of goods by unauthorized dealers.
Greater Fool Theory
A theory that it is possible to make money by buying securities, whether overvalued or not, and later selling them at a profit because there will always be someone (a bigger fool) who is willing to pay the higher price.
Greeks
Refers to the Greek letters used in options trading.
Green Field Investment
A financial investment by a company or a government to construct a project in basic components.
Greenback
A slang term for U.S. paper dollars.
Greenmail
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. It is also known as a "Bon Voyage Bonus" or a "Goodbye Kiss".
Greensheet
An information circular prepared by an underwriter that summarizes the main components of a new issue's prospectus.
Greenshoe Option
Legally referred to as an over-allotment option, a provision contained in an underwriting agreement which gives the underwriter the right to sell investors more shares than originally planned by the issuer. This would normally be done if the demand for a security issue proves higher than expected.
A greenshoe option can provide additional price stability to a security issue, since the underwriter has the ability to increase supply and smooth out price fluctuations if demand surges too high.
Greenspan Put
A description of the perceived attempt of then-chairman of the Federal Reserve Board, Alan Greenspan, of propping up the securities markets by lowering interest rates and thereby helping money flow into the markets.
Investors assumed that they would be able to liquidate their stocks at a set price at or before a future date as if there was a built-in put option. They believed that Greenspan would manipulate monetary policy and continue to maintain market stability. While the former Fed chair's actions did have an effect on the markets, it was not necessarily his objective.
Grey Market
1. A market where a product is bought and sold outside of the manufacturer's authorized trading channels.
2. The unofficial trading of a company's shares, usually before they are issued in an initial public offering (IPO).
Gridlock
A government, business or institution's inability to function at a normal level due either to complex or conflicting procedures within the administrative framework or to impending change in the business.
Grinder
A slang term for a person who works in the investment industry and makes small amounts of money at a time on small investments, over and over again.
Gross Debt Service Ratio - GDS
A debt service measure that financial lenders use as a rule of thumb to give a preliminary assessment about whether a potential borrower is already in too much debt. Receiving a ratio of less than 30% means that the potential borrower has an acceptable level of debt.
Gross Domestic Product - GDP
The monetary value of all the finished goods and services produced within a country's borders in a specific time period, though GDP is usually calculated on an annual basis. It includes all of private and public consumption, government outlays, investments and exports less imports that occur within a defined territory.
GDP = C + G + I + NX
where:
"C" is equal to all private consumption, or consumer spending, in a nation's economy
"G" is the sum of government spending
"I" is the sum of all the country's businesses spending on capital
"NX" is the nation's total net exports, calculated as total exports minus total imports. (NX = Exports - Imports)
Gross Estate
The total dollar value of all property and assets in which an individual had an interest at the time of his or her death.
Gross Income
1. An individual's total personal income before taking taxes or deductions into account.
2. A company's revenue minus cost of goods sold. Also called "gross margin" and "gross profit".
Gross Margin
1) A company's total sales revenue minus its cost of goods sold.
2) A company's total sales revenue minus cost of goods sold, divided by the total sales revenue, expressed as a percentage.
3) In the case of an adjustable-rate mortgage, the interest rate (expressed as a percentage) that is added on to the base index rate in order to establish the actual interest rate the borrower will pay on the loan.
Gross Margin Return On Investment - GMROI
An inventory profitability evaluation ratio that analyzes a firm's ability to turn inventory into cash above the cost of the inventory. It is calculated by dividing the gross margin by the average inventory cost and is used often in the retail industry. To illustrate:
Gross margin return on investment is also know as the "gross margin return on inventory investment" (GMROII).
Gross National Product - GNP
An economic statistic that includes GDP, plus any income earned by residents from 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 Revenue Pledge
A stipulation in a municipal bond indenture that requires the issuer (the municipality selling the bonds to fund a given development project) first to use revenues to pay down the issue's debt-servicing costs, delegating operating costs as second priority and likely funding them from other revenue sources. These bonds are most often tax free at the federal level.
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 Fundamental Rating
This rating compares the overall fundamental quality of a stock’s industry group to the other 196 industry groups tracked by Investor’s Business Daily. This rating is on a 1 to 99 scale, 99 being best. A Group Fundamental Rating of 90, for example, indicates a stock’s industry group has stronger fundamentals than 90% of all other groups. This rating measures key fundamental data affecting a group’s overall move.
These measurements include:
·Two and three year earnings growth rates
·Average stability of profit margins
·Average trend of return on equity
·Average Earnings Per Share Rating
Components are not equally weighted.
This rating should not be considered a sole indicator to buy or sell a stock but should be used along with the other Stock Checkup Ratings, as well as price and volume charts.
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.
Group of Ten - G10
Eleven industrialized nations that meet on an annual basis to consult each other, debate and cooperate on international financial matters. The member countries are: France, Germany, Belgium, Italy, Japan, the Netherlands, Sweden, the United Kingdom, the United States and Canada, with Switzerland playing a minor role.
Group Performance vs. Index
This performance data compares your stock’s industry group’s price performance to the performance of four major market indexes: the Dow Jones Industrial Average, Nasdaq 100, S & P 500 and Russell 2000. See how your stock’s group as a whole has compared to the general market indexes over the last four weeks, twelve months and year to date. For example, -10% indicates the stock’s industry group has underperformed the market index by 10% during the specified time period.
Group Technical Rating
This rating compares an industry group’s technical strength to the other 196 industry groups tracked by Investor’s Business Daily. It is rated on a scale of 1 to 99, 99 being best. A company with a Group Technical Rating of 95, for example, is in an industry that is technically outperforming 95% of the other industry groups, based on several key measurements.
Factors evaluated include:
·The industry group’s price performance rank for the last 26 weeks
·The group’s percent off its 52-week high
·Percentage of stocks in the group making recent new 52-week highs
·Moving averages and other price trends
·Accumulation/Distribution Ratings
·Relative Price Strength Ratings
Components are not equally weighted.
Group-Home Care
Care given to a group of people with similar disabilities within a residence. Those in a group home receive both custodial care and care that is provided by skilled and medically trained professionals. A common disability of people in group homes is Alzheimer's disease.
Groups With the Greatest % of Stocks Making New Highs List
Found on the 'Industry Groups' page of Investor's Business Daily, it is a quick way to recognize the top four or five sectors that are the real leaders in the overall market.
Growth Accounting
A method whereby a set of economic techniques or theories are used to determine what specific factor, or factors, contributed to an economy's growth.
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 Company
Any firm whose business generates significant positive cash flows or earnings, which increase at significantly faster rates than the overall economy. A growth company tends to have very profitable reinvestment opportunities for its own retained earnings. Thus, it typically pays little to no dividends to stockholders, opting instead to plow most or all of its profits back into its expanding business.
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 Investing
A strategy whereby an investor seeks out stocks with what they deem good growth potential. In most cases a growth stock is defined as a company whose earnings are expected to grow at an above-average rate than its industry or the overall market.
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.
Also known as a "glamor stock".
GTQ
In currencies, this is the abbreviation for the Guatemala Quetzal.
Guaranteed Bond
A type of bond in which the interest and principal on the bond are guaranteed to be paid by a firm other than the issuer of the bond.
Guaranteed Death Benefit
A benefit term that guarantees that the beneficiary, as named in the contract, will receive a death benefit if the annuitant dies before the annuity begins paying benefits. The benefit received differs among companies and contracts, but the beneficiary is guaranteed an amount equal to what was invested or the value of the contract on the most recent policy anniversary statement, whichever is higher.
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 Lifetime Withdrawal Benefit - GLWB
A rider on a variable annuity that allows minimum withdrawals from the invested amount without having to annuitize the investment. The amount that can be withdrawn is based on a percentage of the total amount invested in the annuity.
Guaranteed Stock
Common or preferred stock whose dividends are guaranteed.
Guarantor
A person who guarantees to pay for someone else's debt if he or she should default on a loan obligation.
Guardian
An individual who has been given the legal responsibility to care for a child or adult who is incapable of taking care of themselves due to age or lack of capacity. The appointed individual is often responsible for both the care of the ward (the child or incapable adult) and their affairs.
Also referred to as a "conservator" when referring to an adult in need of care.
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."
Guide to Markets
(See Investor's Business Daily Guide to the Markets)
Guilder Share - New York Share
Shares representing Dutch companies that are not permitted to trade outside of national borders. Also known as a "New York share".
Guilt-Edged Investment
A transaction that makes money by unethical means. Culprits supposedly feel guilty having made money in such an unscrupulous way.
Call Us @ 09887188505
snpnifty@yahoo.com
