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Good Faith Deposit:
When someone is dealing with a stcokbroker for the first time, he may be asked for a deposit of 25% to 50% of the value of a buy order, because he is not known to the broker.
Good-Till- Cancelled Order (GTC):
A client's order to buy or sell shares, usually at a specified price, which remains valid till executed. Different from a DAY ORDER or a FILL OR KILL ORDER.
Grahan and Dodd Strategy of Investmen:
A method advocated by the two authors in their book Security Analysis, published some sixty years ago, which advises: 1. Buy shares of companies with udervalued assets, as these are bound to ap;preciate to their value; 2. Buy shares in companies where current assets exceed current liabilities and all long-term debt; 3. Also, such shares should be selling at a low of P/E. 4. Sell the shares when they have appreciated by 50-100 percent. This should take less than three years.
Graveyard Market:
A bear market in which investors who sell make substantial losses, while potential investors with money prefer to stay out until the market picks up. The market is a graveyard for those who are in and can't get out.
Great Depression:
The widespread failure of bussiness, wiping out of profits, large-scale bankruptcy, massive unemployment, and an abysmally depressed standard of living in the United States from 1929 for about a decade, triggered off by the GREAT CRASH of 1929.
Great crash:
On 2 October 1929 the New York Stock Exchange price index fell by 49 points, followed by a drop of 43 points the next day. Stock prices continued to drop, until on 8 july 1932 the index stood at 41, 10.76% of its peak level at 381 in September 1929. All the symptoms of DEPRESSION wereseen in their most aggravated state. On one day alone , 29 October 1929, 16,410,030 Shares changed hands at throwaway prices, millions became unemployed, scores of factories shut down, over 5000 banks failed, and the US went through its worst ever economic disaster. As a result reformative Acts to control the stock market Started being legislated from 1933 onwards.
Greenmail:
Close to blackmail, the term is used in the context of takeover bids. In greenmail, a person buys a large chunk of shares of a company witrh either of the two motives: to sell the shares at a great profit to a corporate raider, who in his eagerness to acquire shares will pay a high price, or to offer them to the company for a similar profit, an offer the management will find hard to refuse as its sale to the raider will threaten its existence. Also sometimes called Greymail.
Greenshoe option:
A provision in an agreement with the underwriters of an issue which states that in the event of exceptional investor interest the issuers will authorize additional shares or bonds for distribution. The greenshoe option is often a feature of EUROBONDS.
Grey Knight:
A takeover bidder whose intentions are unclear. He is neither a welcome bidder like the WHITE KNIGHT, nor clearly an unwelcome bidder, like the BLACK KNIGHT.
Grey Market:
UNOFFICAL PREMIUM market, in which new,not-yet-listed shares are brought and sold. Although it gives some indication of a share's demand and the likely premium at which it will sell when listed, it is by no means completely reliable.
Grey Wave:
A company which is potentially profitable, but which is likely to fulfil its promise only when the investor has grey hair. (One whose hair has already turned grey in the stock market is unlikely to invest in such a company.)
Gross:
The amount without deductions; hence gross profit is without deduction of depreciation and tax, gross income is without deduction under any of the exemption clauses, and gross dividend income is without deduction of income tax.
Gross Block:
Value of a company's fixed assets before depreciation; the gross assets of a company include land, buildings, machinery and office equipment. See APPENDIX A
Gross Domestic Product(GDP):
The value of all the goods and services produced by a country in ine year.
Gross Margin:
See GROSS PROFIT.
Gross National Product(GNP):
The total value in money of all finished goods and services produced in an economy in one full year, and all net property income from abroad. The GNP growth rate is one of the most important ECONOMIC INDICATORS of a country's health.The inflation-adjusted version of the GNP is called the real GNP.
Gross Profit:
Net sales (i.e., realized value of sales after commissions) minus the cost of production ( adding royalty, if any), but without deduction of interest, depreciation, and taxes. Also called gross margin. Expressed as a percentage by dividing gross profit by net sales and multiplying the product by 100.
Gross Sales:
Total sales at the full value of a commodity, before commissions and discounts are deducted.
Gross Spread:
The difference between the price at which a public offer of shares is made and the price a company actually gets from UNDERWRITERS, if the issue is underwritten. The underwriter keeps the difference or the spread towards managerial fees and commission to brokers.
Gross Yield:
Return on an investment before tax is deducted. This can look much more attractive than the net yield after deduction of tax.
Group A Securities:
See SPECIFIED SHARES.
Group B Securities:
See NON-CLEARED SECURITIES.
Group of Five:
Economic association of Britain, the U.S., France, Japan, and west Germany. The finance ministers or central bankers of these countries meet several times a year to discuss issues affecting them all.
Group of Seven:
GROUP OF FIVE, plus Italy and Canada.
Group of Ten:
Group Seven, plus Belgium, Netherlands, and Sweden. Also known as the Paris Club.
Growth:
Increase in the intrinsic value.
Growth Fund:
A mutual fund which invites only in equity shares which offer chances of good capital growth, rather than current income.
Growth Rate:
The growth rate is measured by the increased earning of a company over its previous achievement, expressed in percentage. The growth rate determines the price of a share. See DISCOUNT RATE.
Growth Shares:
Shares of fast-growing companies which shows increasing and higher than average earnings per share than the industry. Good for long term investment, although the current yield of such shares can be insignificant because of their high P/E RATIOS.
Guaranteed Coupon Bonds:
Issued by subsidiaries of nig companies which are gauranteed for bth principal and interest by the parent company.
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