GLOSSARY
Welcome to our comprehensive glossary of stock market terms. Whether you’re a seasoned investor or just starting your journey in the world of finance, our glossary aims to provide you with clear and concise explanations of key terms and concepts. Simply click on any alphabet below to explore the terms starting with that letter.
Glossary
Term | Description |
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Government Bond | A debt security issued by a government entity to finance its activities or projects, usually considered a low-risk investment. |
Growth Stock | A stock of a company that is expected to grow at an above-average rate compared to other companies in the market, often characterized by higher earnings growth and reinvestment of profits. |
General Partner | In a partnership, a partner who has unlimited liability and is actively involved in the management and operations of the business. |
Gross Domestic Product (GDP) | The monetary value of all finished goods and services produced within a country's borders during a specific time period, often used as a measure of economic growth. |
Growth Rate | The percentage increase in the value of a specific variable over a given period of time, often used to measure the expansion or development of a business or economy. |
Guaranteed Investment Certificate (GIC) | A type of investment vehicle offered by financial institutions that guarantees the principal investment and provides a fixed rate of return over a specified period of time. |
Guaranteed Minimum Income Benefit (GMIB) | A feature offered by some annuity contracts that guarantees a minimum level of income during retirement, regardless of the performance of the underlying investments. |
Growth Investing | A style of investing that focuses on identifying and investing in companies with high growth potential, often characterized by above-average revenue and earnings growth rates. |
Good 'Till Cancelled (GTC) | An order to buy or sell a security that remains in effect until it is either executed or cancelled by the investor. |
Green Bond | A bond issued to finance projects or activities that have positive environmental or climate benefits, often certified by a recognized standard or organization. |
Group Retirement Plan | A retirement savings plan offered by an employer to its employees, such as a 401(k) or a pension plan. |
Gross Margin | The percentage of revenue remaining after deducting the cost of goods sold, representing the profitability of a company's core operations. |
Gross Profit | The difference between revenue and the cost of goods sold, representing the profit generated by a company's core operations before deducting operating expenses. |
Growth and Income Fund | A type of mutual fund that seeks to achieve both capital appreciation and current income by investing in a mix of growth-oriented and income-generating securities. |
Gross Income | Total income before any deductions or taxes are applied, including wages, salaries, dividends, interest, rental income, and other sources of revenue. |
Good Delivery | A term used in securities trading to describe the proper transfer of securities from one party to another in accordance with the rules and standards of the exchange or market. |
Gold Standard | A monetary system in which the value of a country's currency is directly linked to a specified quantity of gold, often used as a benchmark for stability and as a basis for currency exchange rates. |
Golden Parachute | A financial arrangement that provides substantial financial benefits to executives or key employees in the event of a merger, acquisition, or other significant corporate event that results in their termination or change in control of the company. |
Government Securities | Debt instruments issued by a government entity, typically considered to have low credit risk and often used as a safe haven investment. |
Good 'Til Date (GTD) | An order to buy or sell a security that remains in effect until a specified date, after which it is automatically cancelled if not executed. |
Grey Market | An unofficial market where securities, such as stocks or bonds, are traded before they are officially listed on a stock exchange. |
Group Insurance | A type of insurance coverage provided to a group of individuals, typically employees of a company, offering benefits such as life insurance, health insurance, or disability insurance. |
Hedge Fund | A type of investment fund that pools capital from accredited investors or institutional investors and employs various strategies to generate returns, often using more complex or alternative investment approaches. |
Initial Public Offering (IPO) | The process by which a private company offers its shares to the public for the first time, allowing individuals to become shareholders and trade the company's stock on a public exchange. |
Index Fund | A type of mutual fund or exchange-traded fund (ETF) that aims to replicate the performance of a specific market index, such as the S&P 500, by holding a diversified portfolio of securities in the same proportions as the index. |
Inflation | The rate at which the general level of prices for goods and services is increasing over time, resulting in a decrease in the purchasing power of a currency. |
Institutional Investor | A large organization, such as a pension fund, insurance company, or mutual fund, that invests significant amounts of money on behalf of its members or clients. |
Interest Rate | The cost of borrowing money or the return earned on an investment, expressed as a percentage of the principal amount. |
Investment Bank | A financial institution that provides various financial services to corporations, governments, and institutional clients, including raising capital, facilitating mergers and acquisitions, and offering advisory services. |
Investment Grade | A credit rating assigned to a bond or other fixed-income security indicating a relatively low risk of default, typically assigned by credit rating agencies such as Standard & Poor's or Moody's. |
Investment Horizon | The length of time an investor expects to hold an investment or the timeframe over which investment objectives are planned to be achieved. |
Joint Account | An account owned and operated by two or more individuals who have equal access to the funds and can make transactions on behalf of the account. |
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