Financial Dictionary

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Gaijin

A Japanese term for foreign investor who invests in Japanese securities.

Gamma

The measurement of how fast Delta changes with respect to price of underlying asset.

Gap

A vast stock price movement between two trading sessions when no trading is conducted in between. This movement can be upward or downward and emerge because of trading pressure or earnings announcements of the issuing company.

Garnishing

A court order to employer instructing him to withhold future wages to employee in order to compensate for the lawsuit that employee has lost.

Gasoline

Gasoline is one of the most important commodities in the world used primarily in the transportation industry in the U.S. This usage segment accounts for over 40% of global gasoline demand although emerging markets are quickly catching up in aggregate. It should also be noted that taxation and subsides also play a key role in […]

Gather in the Stops

This is a trading strategy which main goal is to decline the prices of stock by selling large amounts of stocks. By selling large amounts of stock, sellers is driving the price down, knowing that other investors had set stop orders at some prices. By reaching those prices, other investors also begin to sell their […]

Gearing

Also called Financial Leverage. It is the percentage of long term liabilities related to shareholders capital. Companies with more long term debt than equity are considered highly speculative.

General Obligation Bond

A municipal bond that is not secured by any assets as collateral, but credit and taxing power of the issuer. Since the municipal bonds are issued by the government, General Obligation Bond is usually well secured.

General Securities Representative Exam

The exam for the Series 7 license, which enables the holder to trade all kinds of securities except futures trading which requires Series 3 license. General Securities Representative Exam provides essential knowledge for understanding securities trading. Build up by NYSE and administered by NASD.

Generally Accepted Accounting Principles (GAAP)

Rules, standards and procedures that are accepted and used in the accounting community for reporting financial information. In the US, GAAP standards are set by the Financial Accounting Standards Board (FASB). Financial statements submitted to the SEC by publicly traded companies are required to meet GAAP standards. Be wary of the companies whose financial statements […]

George Soros

George Soros, born August 12, 1930, is a Hungarian-American financier, businessman, and notable philanthropist focused on supporting progressive-liberal ideals and causes. He became known as “the Man Who Broke the Bank of England” after he made US$1 billion during the 1992 Black Wednesday UK currency crisis.Soros correctly speculated that the British government would have to […]

Ghosting

An illegal attempt to influence stock prices, done by two or more market makers in order to collect profit from price movement. Ghosting is administered by companies that are obligated by law to compete between themselves and because of that is illegal.

Gilt

A UK risk free bond issued by the British government. It is the equivalent for US Treasury security. Since the original UK government certificates had gilded edges, Gilt remained as the common name for these types of bonds.

Going Concern

A term describing the company which is able to stay in business and operate indefinitely. It is relative term, describing only the current financial situation of the company, whereas already in short period of time a company may not be a going concern due to negative after effects of future business decisions. If company is […]

Going Long

This means buying the investment, stocks, real estate, or bonds. The buyer expects that the security will rise in value in the future, often year or more. Also called Long Position.

Going Private

A process of repurchasing all of company’s outstanding stocks held by investors. Reasons for going private differ among companies, but let’s say that the most common reason are costs of being publicly listed and complying with the SEC. The company will usually offer premium prices for the stock in the hands of investors, 10% is […]

Going Public

Represents the change in ownership structure. It is an Initial Public Offer (IPO) and means that the company will be publicly listed on the market and that investors have the ability to buy company’s shares. Also refers to “Flotation.”

Going Short

This means selling the security, a stock, real estate or bond, that the holder believes it will decrease in value in the future.

Gold Bug

A slang term used to describe an investor that constantly believes that gold is about to rise in value. He is bullish on gold and views gold as a timeless, safe, and prosperous investment.

Golden Boot

Refers to financial incentive given to an older employee, stimulating him to retire earlier.

Golden Handshake

A financial reward given to senior executive just before the end of his career. It is gratefulness for the time spent in the company.

Golden Parachute

Refers to a clause in executive employee’s contract, which promises him benefits if the company is acquired by another company and his executive position is terminated.