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Tip of the Day Refinance Your Mortgage if You Can Cut At Least One Point

Refinance Your Mortgage if You Can Cut At Least One Point - Refinancing a mortgage only makes good sense if you are going to save more than 1% on the...

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Investing Glossary - G

    GAAP

    Definition: GAAP, short for "Generally Accepted Accounting Principles", are a set of principles that govern domestic accounting practices.  These principles include--but certainly aren't limited--how to account for expenses and liabilities.  Companies must abide by these principles. Advice: Companies often try to sidestep the GAAP rules in order to improve their financial statements.  This is where they often run afoul.  Enron misaccounted for many of its liabilities, which ultimately lead to its downfall.  WorldCom also capitalized costs that it should have expensed, causing it to restate its financials.  Both companies went bankrupt.  ...

    Gap Opening

    Gap Opening - Gap Opening is the opening trading figure attached to the stock security at the opening bell of the stock market. This is the trading of stock security on the stock exchange. This shows a significant increase in trading price issued compared to the closing bell of the stock market the night before. Overnight stock trading around the world also affects the stock trading price capacity of stock issuance. Countries around the world continue to trade through their stock markets. What occurs in the overnight hours does affect the opening bell on Wall Street during the opening...

    Gross Domestic Product (GDP)

    Definition: A country's gross domestic product (GDP) is the value of the goods and services produced in a country.  This includes private and personal consumption, government spending, investments, and net exports.  It's calculated as follows:GDP = C + G + I + NX; whereC = consumptionG = government spendingI = investmentNX = net exports (exports minus imports)Advice: GDP is an important economic indicator because it helps investors determine  ...

    General and Administrative Overhead

    General and Administrative Overhead – These are costs related to the operation of a firm the stem form its general functions. It also applies to expenses related to any administrative functions. While these are necessary parts of a company’s overhead, it doesn’t necessarily mean any cost that are the result of the expenses need to develop or actually produce a given type of product. These are the expenses related primarily to whatever cost are need for the actually operation of a given company. And thus are normally treated and kept track in different ways from any development costs that happen...

    General Order

    General Order? - There are several uses of this term. In a broader since a general order would be one that is binding over everyone that it applies to who is influenced in some way by such directives. This most often related to the military and its standing orders. In the import industry this would do with a facility where goods being imported must be kept while entry is filled on the imports. This facility is called a general order warehouse. And applies to a bonded warehouse used for such purposes. Thus this term needs to be remembered for its...

    General Partner

    General Partner – This is a legal term involving more than one person. Said persons go together in order to form a business. Anyone who is involved as a general partner for a business has the responsibility for whatever is done by the company. The same person will have authority for any decision making process needed for the company. This can include any obligations the company takes on in the process of doing business. As a general partner the decisions this individual makes will be binding with regards to any debts or obligations incurred by a given company. ...

    General Partnership

    General Partnership – A general partnership is contractual business venture that features two or more partners.  This type of association is riskier than a Corporation.  Being incorporated allows owners to be protected under the umbrella of the “company”.  There is not limited liability for partners joined in this type of business.  These partners share equally in the success or failure of that company.  If the company is involved in a bankruptcy or other type of litigation, all partners are liable for the consequences, including the short and long-term debt of the company.  The risk will include their individual assets. ...

    Geographic Risk

    Geographic Risk – Geographic risk typically involves investment speculation in the economies and industries of foreign countries.  The average investor or trader would be wise to rely on an experienced portfolio manager when investing dollars in another country.  There are many factors to explore before investing overseas.  Some critical issues to research are: the social stability of that country, the economy, the stock market, the weather conditions, (if investing in agriculture), and the political structure and stability of the government.  Any foreign investment adventure should be carefully thought out, in order to minimize risk, or at least know the risk...

    George Soros

    Definition: George Soros is one of the top investors of the last couple decades.  He is largely known for his bet against the British pound, which resulted in a one-day profit of $1 billion. Advice: George Soros managed the Quantum Fund, a wildly-successful hedge fund, for nearly 30 years.  He rose to fame in 1992 when he shorted the British pound so heavily that the British government was forced to devalue it, netting him a $1 billion profit.  For this reason, many people in the UK still despise him.  ...

    Gilt-Edged

    Gilt-Edged - Gilt-Edged is defined as fixed income or index-linked bonds issued strictly by the government. It is, for investment purposes, the good faith exercise in trusting the government to perform properly in finance. The purchaser or holder of the bond is in effect, lending or extending private sector money into the government in return for a regular interest payment. Holding a gilt-edged bond does not mean it is necessary to hold until redemption. It is like shares of stock securities tradable as instruments. The price fluctuation is accountable to the supply and demand of the main influence on the...

    Ginnie Mae

    Ginnie Mae - Ginnie Mae is a government owned and operated corporation active in the business adventure of specific issues. It is the governments run operation in the business of buying mortgages. The government backing is securitized and on-sells to the investors. In the purchasing of mortgages from various lending institutions it then operates in the private sector. This in a corporation organized and run by the government competing against the private sector. The active institution is in the business of guaranteeing payment of interest and principal of the mortgage backed securities. They pay record lower interest rates than non-government...

    Ginnie Mae Trust

    Ginnie Mae Trust - Ginnie-Mae Trust is a direct government holder of private mortgages through public sector lending affiliates. It is through public investors and initiatives to afford collateral backing. It will enhance the availability of multifamily housing. The low interest loans will aid more individuals and families abilities to own a home of their own through this program. They have the ability to securitize housing loans through private investors. This government guaranteed ability to finance used to finance multifamily housing developments that serve low income to moderate-income families. It will ensure the continued quality and affordability for low revenue...

    Glamour Stock

    Glamour Stock - Glamour Stock is stock securities attracting every stock investor through lures of consistent performance on the stock exchange. The dramatic price appreciation discussed widely and all investors consider this a prize to own in their personal stock portfolio. A widely popularized stock option considered to be a favorite trading in the stock exchange. Glamour stock, tend to sell at a very high price earnings ratio and found held in institutional portfolios. Some stockbrokers and stock investors have sold off other stock securities to purchase the one receiving the limelight. Glamour stocks typically represent the corporations with a...

    Global Depositary Receipt

    Global Depositary Receipt - Global Depositary Receipt is a negotiable certificate showing ownership of stock shares owned by a company or corporation. This allows companies offer shares of stock certificates in the stock markets throughout the world. Investors and stockbrokers can purchase equity state in foreign companies and corporations without the need of a home exchange. The time involved and the money spent give the investor a major savings by trading on the foreign exchange markets. When the foreign stock certificates sell on the foreign market the investment translates then into the stock investor's country of origin, such as China...

    Global Fund

    Definition: A mutual fund that invests in a portfolio of securities from all throughout the world, including the United States.  Not to be confused with an "international fund", which only invests in stocks in countries outside the US. TeenAnalyst Advice: Global funds allow the investor to gain more diversification for ...

    Global Investment Performance Standards

    Global Investment Performance Standards (GIPS)? - The GIPS is a specific set of ethical expectations that has been outlined and put into practice by a group known as, Charter Financial Analyst or the CFA Institute. They put into place a systematic plan for implementing standards of providing relevant information about how the results of investments are to be calculated. Their system has specific guidelines covering what constitutes complete disclosure and equitable representation in the presentation of performance results. The objective is to protect those seeking to invest in a given fund from not having all the necessary facts to make...

    Global Shares

    Global Shares - Global Shares is the act performed by stockbrokers and private investors from countries around the world to buy trade and sell stock certificates in more than one country at a time. An example of this is a stockbroker, private investor, business, or corporation trading in Europe using the Euros in Germany. Another example of this is the stockbroker, private investor, business, or corporation trading in Japan using the Yen. This is a practice conducted in many countries around the world. Global shares are stock claims on a corporation's common stock or ordinary shares. It is different from...

    Gross National Product (GNP)

    Definition: The gross national product (GNP) is similar to GDP, but also includes the income of overseas residents minus the income earned by foreign residents within the country's borders.Advice: GNP attempts to capture the total dollar value of all final goods and services produced for consumption in society during a particular time period.  GDP only calculates what's created within a country's borders, whereas GNP makes some allowances for activity created by residents outside of its borders.  ...

    Go-Go Funds

    Go-Go Funds - A go-go fund refers to a specific type of mutual fund only made up of securities. These securities have an appeal because they offer a possible high return during a short interval. This can appeal to any person wishing to only invest for a specific amount of time and have a chance at the maximum potential gain on his or her portfolio. It can offer a much greater return than other stocks. However, anyone considering this type of purchase has to take into account they often involve a high risk because of the aggressive growth nature in...

    Going-Concern Value

    Going-Concern Value – The Going-Concern value of a company compares and contrasts the value of the company’s assets upon liquidation and its’ ability to operate a business.  This is not a monetary value, but instead uses tools to assess the overall goodwill and forward thinking of that company.  When interpreting this value, a good accountant or auditor will evaluate the reputation of a company, the workforce and training, its’ equipment and buildings, whether permits and licenses are current, hiring practices, insurance coverage, along with all other documents and system and safety procedures and manuals....

    Going Concern

    Going Concern – Going Concern is a term used in accounting and risk management that indicates a company’s viability and strength over a period of one year (at a minimum). Some of the elements that determine if a business is a going concern are:  the ability to make a profit, minimize debt and pay bills timely, and show growth, (among other factors) during the course of its’ operation.  Directors of a business entity will report activity in a financial statement.  Auditors will then assess the strength of the company and determine whether it will remain viable for the foreseeable future....

    Going Private

    Going Private - Going Private is a publicly held company with outstand stock shares. The stock shares purchased by individuals or small groups to obtain ownership and control. It is stock investors buying a private corporation or company. The stock investors believe the stock market is undervaluing or, devaluing the company or corporation. This is a management buyout and a common practice among investors. The stock investor or, purchaser may not want to meet the many requirements imposed on a publicly held company. Equity firms conduct the buying and selling....

    Going Public

    Definition: The process of selling ownership in a company to the public.  The companies use investment banks to raise money by selling shares of stock to investors.  The company can then use the money to grow their operations. TeenAnalyst Advice: Going public is a quick way for a company to get access to a lot ...

    Gold Brick

    Gold Brick - A Gold Brick is the sale of stock to a stockbroker or investor. It is the intent to offer fraudulent stock certificates in a bogus business or corporation. The sale of stock to an investor painted under the brush of a worthwhile deal. The purchaser believes the stock is worth more than paid for and pays a substantial sum of money for the purchase. The investment turns out to be a worthless or fraudulent adventure. The investor is in possession of stock with no monetary value. It is a fraudulent deal and the seller of the stock...

    Golden Handcuffs

    Golden Handcuffs – Golden handcuffs are techniques, rewards or strategies, and sometimes penalties that a company uses when it desires to discourage an employee, such as a director or manager from exiting the company.  Some of the incentives that a company may use to induce a valuable employee to continue in his or her job are:  increased salary, bonuses, stock-options, additional benefits, vacation time, and other luxuries, such as a car and entertainment expense reimbursement.  Some penalties may include lost of stock options or pension if the employee terminates the employment contract early....

    Golden Handshake

    Golden Handshake – A golden handshake is a significant bonus or severance package that is typically offered to a high ranking executive, director or partner within a firm.   The golden handshake can take the form of a clause in the employment contract prior to employment, or it can be a “buy-out” condition in the event that executive retires, or is fired, or is the victim of company restructuring.  Since some executives assume a large risk to their reputations when running multi-million dollar enterprises, the golden handshake is not unusual.  It also can assure that if an executive is asked...

    Good Delivery

    Good Delivery - This is a term that is used in order to describe how a given certificate has the necessary documentation to qualify as being ready for the transfer of title. It must comply with proving how the specific data needed has been provided that will show all the required endorsements are evident. And also has the other essential requirements that have to be done before the transference can be completed. Once this information has been validated then the certificate may be delivered on the date set forth for the settlement ...

    Good Faith Deposit

    Good Faith Deposit – A good faith deposit or “earnest deposit” is a monetary payment, usually on real estate, that indicates to the seller that the buyer is genuinely intending to complete the purchase.  A good faith deposit shows the seller that the buyer is serious, and this sum is held in escrow while the purchase agreement is written.  If the seller rejects the buyer’s offer, the good faith deposit is returned.  If the buyer withdraws the contract, the good faith deposit is forfeited.  Most sellers prefer to negotiate large good faith deposits in order to discourage a buyer from...

    Government Enterprise

    Government Enterprise – A government enterprise will be taking on new meaning in 2009, as the US Government holds a stake in General Motors, among other businesses.  In the past, a government enterprise usually referred to company that is sponsored by the government, and these were typically public utilities.  The benevolent reasoning for the government to support services such as transportation, energy, water or telecommunications, is to secure and maintain basic community infrastructure.  This action can create some monopolies within those industries. However the government feels its’ involvement is in the best interest of the consumers....

    Government National Mortgage Association

    Government National Mortgage Association - The Government National Mortgage Association is a direct government holder of private mortgages through public sector lending affiliates. It is through public investors and initiatives to afford collateral backing. It enhances the availability of multifamily housing. The low interest loans aid more individuals and families to own a home of their own through this program. They have the ability to securitize housing loans through private investors. This government guaranteed ability to finance used to finance multifamily housing developments that serve low income to moderate-income families. It will ensure the continued quality and affordability for low...

    Graduated Security

    Graduated Security - This is the term used for referring to when an equity security firm decides to move its stock listing from one stock exchange to another. There are a variety of reasons why any given firm would feel there are advantages to changing where it is listed. A decision to change may be motivate by such issues as the appeal of more prestige with a different exchange. In such cases the firm may feel this will lead to increased activity on the part of traders. Or it can feel it will benefit from the extra publicity....

    Grant

    Definition: A grant is a form of federal or state financial aid that does not need to be repaid.  They're typically given to people who demonstrate financial need. Advice: Grants are amazing sources of financial aid for people with need.  ...

    Green Fund

    Definition: Green funds are mutual funds that invest in socially-responsible companies that do not take part in immoral or unethical activities.  As a rule of thumb, this typically excludes tobacco and gaming companies, as well as those with questionable labor...

    Gross Capitalized Cost

    Gross Capitalized Cost – Gross capitalized cost is calculated by an individual when leasing a car.  It is the value of the automobile that has been mutually agreed upon by both the purchaser and the car salesman.  Gross capitalized cost includes not only the base price for the lease period but also any costs stemming from insuring the car, agreements concerning repair and damage and all other necessities that have been agreed upon prior to the sale.  This figure is not fixed and can be negotiated between the buyer and seller.  The main objective on the buyer’s part is to...

    Growth and Income Fund

    Growth and Income Fund - A type of mutual fund that is created in such a way to provide the investor increases in the portfolio?s worth and the amount of its regular payments. This type of program will often elect to keep the cap on growth small while a much larger one for income stock. Bonds may be a significant supplement on such options. With this type of plan the risk is often considered as moderate. Those who are the managers over such growth and income funds will generally do a great deal of...

    Growth at a Reasonable Price (GARP)

    Growth at a Reasonable Price (GARP) - Growth at a Reasonable Price (GARP is an equity investment strategy seeking to combine tenets of growth investment. It is value investing to find individual stocks worth trading. Stockbrokers and stock investors look for corporations or companies showing consistent earnings grown above the broad market levels. It is a tenet of growth investing while leaving out corporations and companies that have high value investing. The overarching goal is to avoid the extremes when possible. This incorporates the value of growth or the value of investing. This basically leads the stockbrokers and stock investors...

    Growth Fund

    Definition: A growth fund is a mutual fund that invests in a portfolio of growth stocks.  These funds are geared towards people who are looking for greater capital appreciation.  They also carry more risk than income, blend, balanced, and value funds. TeenAnalyst Advice: Growth funds are mostly comprised of companies that are new and ...

    Growth Rate

    Definition: This is the rate at which a company, economy, earnings, etc. is currently growing at or expected to grow at. TeenAnalyst Advice: As investors, we typically look for companies that are growing quickly.  Companies with rapidly growing earnings are called "growth stocks."Stocks of companies that aren't growing rapidly could still be lucrative investments.  "Value stocks" are stocks that are currently undervalued.  Even though the company may not be achieving high growth rates, its low stock price might make it an attractive buy.In some years, value stocks outperform growth stocks.  They're also less prone to market downturns.   ...

    Growth Stock

    Growth Stock - Growth Stock is Glamour Stock is stock securities attracting every stock investor through lures of consistent performance on the stock exchange. The dramatic price appreciation discussed widely and all investors consider this a prize to own in their personal stock portfolio. A widely popularized stock considered a favorite trading in the stock exchange. Glamour stock, tend to sell at a very high price earnings ratio and found held in institutional portfolios. Some stockbrokers and stock investors have sold off other stock securities to purchase the one receiving the limelight. Glamour stocks typically represent the corporations with a...

    Guaranteed Stock

    Guaranteed Stock - Guaranteed Stock is common stock certificate or preferred stock certificate with dividends guaranteed by the insurer of record. The common stock certificates or preferred stock certificates guarantee gives the stock certificates a much higher value. The value translates into a higher yield and dividend payment. The value in the stock certificates is higher than previously expected. Other stockbrokers and stock investors are attracted to buy at higher yield. Investment is timely and good. Preferred stock certificates issued by one company and guaranteed dividends by another company...

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    Definition of the Day Joint Venture

    Definition: When two or more individuals or corporations cooperate in a business venture and agree to split the profits and management. TeenAnalyst Advice: Joint venture are usually undergone by companies that want to work together but not have to merge.Joint ventures are separate entities created by the companies (or individuals) and...

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