HomeWall Street WeblogWall Street HistoryWall Street JobsFinancial DictionaryTopical IssuesWall Street MoviesTrading ResourcesHumourLinksFAQsContact UsSite Map

Back to Home Page

A     B     C     D     E     F     G     H     I     J     K     L     M     N     O     P     Q     R     S     T     U     V     W     X     Y     Z

GAAP   -   Generally Accecpted Accounting Principles. 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.

Gadfly   -   A slang term for an investor who attends the annual shareholders meeting to criticize the corporation's executives. A gadfly addresses many issues for the shareholders, often grilling the management by asking difficult or embarrassing questions.

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.

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. (This practice was often used by unscrupulous property developers in the property boom in Ireland during the late 1990's and early 2000's)

Gazunder   -   When a buyer reduces his or her bid for a property before the transaction has been signed and finalized.

General Motors (GM) Indicator   -   A theory stating that the performance of automaker giant General Motors (GM) is a pre-cursor to the performance of the U.S. economy and stock market. In other words, when people are confident and making money one of the first things they would do is go out and buy a new car.

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.

Ginnie Mae   -   Government National Mortgage Association (GNMA).  U.S. government corporation within the U.S. Department of Housing and Urban Development (HUD). Ginnie May aims to: 
1. Ensure liquidity for government-insured mortgages, including those insured by the Federal Housing Administration (FHA), the Veterans Administration (VA) and the Rural Housing Administration (RHA). 
2. Bring investors' capital into the market for these types of loans, so that the issuers have the means to issue more.  
Most of the mortgages securitized as Ginnie Mae mortgage-backed securities (MBSs) are those guaranteed by FHA, which are typically mortgages for first-time home buyers and low-income borrowers.

Glocalisation / Glocalization   -    A combination of the words "globalization" and "localization" used to describe a product or service that is developed and distributed globally, but is also fashioned to accommodate the user or consumer in a local market. This means that the product or service may be tailored to conform with local laws, customs or consumer preferences. Products or services that are effectively "glocalized" are, by definition, going to be of much greater interest to the end user. (Example : EBAY)

Go-Go Fund   -   A slang name for a mutual fund that has an investment strategy that focuses on high-risk securities in an attempt to capture above average returns. A go-go fund's aggressive approach usually involves holding large positions in growth stocks.

Godfather Offer   -   An  irrefutable takeover offer made to a target company by an acquiring company. Typically, the acquisition price's premium is extemely generous compared to the prevailing market price. Therefore, if the target company's management refuses the offer, shareholders may initiate lawsuits or other forms of revolt against the target company for not performing their fidiciary duty of looking out for the best interests of the shareholders.

Going Concern   -   A term for a company that has the resources needed in order to continue to operate indefinitely. If a company is not a going concern, it means the company has gone bankrupt.
Also known as "Going Concern Value".

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 liquidated company's assets, because an ongoing operation has the ability to continue to earn profit, while a liquidated company does not. `

Gold Bug   -   An individual that 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 he or she (perceives) as financial security in the event of a currency devaluation, and often also believes that the price of gold will continue to rise in the future. The term also refers to analysts who consistently recommend gold buys.

Gold Bull   -   A slang term for a market or investor who is bullish on gold. A gold bull anticipates the price of gold increasing over the next period of time. A gold bull market is one where the value of gold has a rising trend.

Goldbrick Shares   -   A stock that bears the surface appearance of quality and worth, but is in fact worth very little.

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."

Good Faith Money   -   The deposit of money into an account by a buyer to show that he or she has 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.

Gorilla   -   A company that dominates an industry without having a complete monopoly.

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.

Green Bond   -   A tax-exempt bond which is issued by federally qualified organizations and/or municipalities for the development of brownfield sites. Brownfield sites are areas of land that are under utilized, have abandoned buildings, or are under developed. They often contain low levels of industrial pollution. 
Green Bonds are short-hand for Qualified Green Building and Sustainable Design Project Bonds.

Green Fund   -   A mutual fund or other investment vehicle that will only invest in companies that are deemed socially conscious in their business dealings or directly promote environmental responsibility. A green fund can come in the form of a focused investment vehicle for companies engaged in environmentally supportive businesses, such as alternative energy, green transport, water and waste management, and sustainable living.

Green Investing   -   Investment activities that focus on companies or projects that are committed to the conservation of natural resources, the production and discovery of alternative energy sources, the implementation of clean air and water projects, and/or other environmentally conscious business practices.
Pure play green investments are those that derive all or most of their revenues and profits from green activities. Green investments can also be made in companies that have other lines of business but are focusing on green-based initiatives or product lines.

Green Shoots     -     Refers to early signs of recovery in the economy following a period of economic downturn or recession.

Green Tech   -   1. Technology that is considered environmentally friendly based on its production process or supply chain.
2. A means of energy production that is less harmful to the environment than more traditional ways of generating energy, such as burning fossil fuels.  

Green technology is a relatively young marketplace but investor interest runs very high in response to global warming fears and the increasing scarcity of many natural resources.

Greensheet   -   An information circular prepared by an underwriter that summarizes the main components of a new issue's prospectus.

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.

Greenwashing   -   When a company, government or other group promotes green-based environmental initiatives or images but actually operates in a way that is damaging to the environment or in an opposite manner to the goal of the announced initiatives. This can also include misleading customers about the environmental benefits of a product through misleading advertising and unsubstantiated claims.

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.

Gun Jumping   -   1. The illegal practice of soliciting orders to buy a new issue before registration of the initial public offering (IPO) has been approved by the Securities and Exchange Commission (SEC).
2. Trading securities on the basis of information that has not yet been disclosed to the public.

Gunslinger   -   A high-strung portfolio manager who, looking for high returns, invests in very high-risk stock.

Financial Dictionary (G)