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Terms
 
Gainer

General obligation (GO) bond

Gilt-edged security

Global fund

Go public

Gold standard

Good will

Government National Mortgage Association (GNMA)

Green fund

Growth

Guaranteed investment contract (GIC)

Guarantor

   General Agreement on Tariffs and Trade (GATT)

Gift tax

Global depositary receipt (GDR)

Go long

Go short

Good till canceled (GTC)

Government bond

Grace period

Gross domestic product (GDP)

Growth and income fund

Guaranteed renewable policy
 
 
Definitions
 
 
Gainer
Stocks that increase in value over the course of the trading day are described as gainers or advancers. More specifically, stocks that increase the most in value in relation to their opening price are called percentage gainers (or percentage winners), while stocks that go up the greatest number of points are called net gainers (or dollar winners).

Percentage gainers and net gainers tend not to be the same stocks. For example, a $1 increase in market price would be a significant percentage gain-50%-for a stock trading at $2, whereas for a stock trading at $100, $1 would be a moderate 1% gain. The number of gainers during the trading day is usually compared to the number of losers or laggards-the stocks that lose the most value over the trading day.
 
 
 
General Agreement on Tariffs and Trade (GATT)
The GATT pact was ratified by Congress in 1994 to foster trade among nations by cutting international trade tariffs, standardizing copyright and patent protection, and liberalizing trade legislation.
 
 
 
General obligation (GO) bond
Because municipal GO bonds are repaid out of general revenues, they are considered somewhat less risky-and therefore pay slightly lower rates-than the same municipality's revenue bonds, which are backed by income from a specific project or agency. A municipality's general revenues come from the taxes it raises and money it borrows-sometimes described as its full faith and credit.
 
 
 
Gift tax
A gift you make to anybody other than your spouse is taxable if it's worth more than $10,000, and you, rather than the recipient, are responsible for the tax that may be due.

However, you can postpone actually paying the tax until the total combined value of all of your lifetime taxable gifts (or the value of your taxable gifts plus your taxable estate) reaches the tax-free limit set by the Federal Unified Gift and Estate Tax Credit. In 2000 and 2001, that amount is $675,000, and it will gradually increase to $1 million in 2006.

When the combined total exceeds the limit, you (or your estate) owe federal gift and estate tax on the amount that's over the limit, and you may owe state taxes as well. However, you can avoid gift tax entirely if you make individual gifts that are valued at $10,000 or less. In fact, you can make as many of these nontaxable gifts to as many different people as you wish each year, as long as the combined total value of your gifts to any one person stays below the tax-free limit. (The $10,000 limit is indexed to the inflation rate but will increase only in $1,000 increments, or in any year when inflation hits 10%.)

If you want to be even more generous, you and your spouse can give a joint gift of up to $20,000 to as many people as you choose each year without owing gift taxes. And you can give your spouse gifts of any value at any time. These gifts are always tax-free, provided your spouse is a US citizen.
 
 
 
Gilt-edged security
When applied to bonds, the term gilt-edged is the equivalent of describing a stock as a blue chip. Both terms mean that the issuing corporation has a long, strong record for meeting its financial obligations to its investors, including making interest and dividend payments on time and redeeming bonds on schedule.
 
 
 
Global depositary receipt (GDR)
In order to raise money in several markets, some corporations offer shares of their stock on markets in countries other than the one where they have their headquarters. To do it, they issue global depositary receipts in the currency of the country where the stock is trading.

For example, a Mexican company might offer GDRs priced in pounds in London and in yen in Tokyo. Individual investors in the countries where the GDRs are issued buy them to diversify into international markets without having to deal with currency conversion and other complications of overseas investing. However, GDR prices are often volatile and the stocks may be thinly traded, which makes buying them riskier than buying domestic stocks.
 
 
 
Global fund
Global, or world, mutual funds invest in US securities as well as those of other countries. Global funds differ from international funds, which invest only in overseas-non-US-markets. Although global funds typically keep approximately 75% of their assets invested in the US, fund managers are able to take advantage of opportunities they see in a variety of overseas markets.
 
 
 
Go long
When you go long, you buy an investment that you intend to hold for a period of time or one that you expect to increase in value so that you can sell it at a profit. Going long is the opposite of going short, or selling short, which means you sell an investment you don't own because you expect it to decline in value in the near future.
 
 
 
Go public
A corporation goes public when it issues shares of its stock in the open market for the first time, in what is known as an initial public offering (IPO). That means that at least some of the shares are held by members of the public rather than exclusively by the investors who founded and funded the corporation initially.
 
 
 
Go short
When you go short, you borrow shares of stock from your broker, sell the borrowed shares at their current market price, and pocket the money, minus commission. The reason you go short, which is also known as selling short, is because you expect the stock's price to decline in the near future. If it does, you can buy shares at the lower price and return the number you borrowed, plus interest, to your broker.

The amount you make on the transaction depends on the difference between the price at which you sold and the price at which you can repurchase the shares, plus the amount of time you have to wait for the price to drop. However, there is always the risk that the price will remain stable or even increase, which could mean losing money on the transaction.
 
 
 
Gold standard
The gold standard is a monetary system that measures the relative value of a currency against a specific amount of gold. Developed in England in the early 18th century, when the scientist Sir Isaac Newton was Master of the English Mint, the gold standard was used throughout the world by the late 19th century. The US was on the gold standard until 1971, when it stopped redeeming its paper currency for gold.
 
 
 
Good till canceled (GTC)
If you want to buy or sell a security at a specific price, you can ask your broker to issue a good-till-canceled order. When the security reaches the price you've indicated, the broker will execute the trade. This order stays in effect until it is filled or you cancel it.

A GTC, also called an open order, is the opposite of a day order, which is automatically canceled at the end of the trading day if it isn't filled.
 
 
 
Good will
When analysts estimate the value of a corporation, they look first at the value of its tangible assets, or what it owns. But they also look at its good will, a term that covers the intangible value of its reputation, its satisfied clients, and its productive work force-factors that are considered evidence of the corporation's potential to produce strong earnings.
 
 
 
Government bond
The term government bond is used to describe all types of debt securities issued by the federal government, such as US Treasury bills, notes, bonds, and zero-coupon STRIPS. You can buy these bonds directly using a Treasury Direct account that you set up through a Federal Reserve Bank or through a broker.

Treasurys are backed by the full faith and credit of the US government, and the interest they pay is exempt from state and local-though not federal-taxes. The cash raised by the sale of Treasurys is used to finance a variety of government activities. Trading in the bonds also helps regulate the money supply and pay off the national debt. The main difference between bills, notes, and bonds is the length of their terms and their rates of return.
 
 
 
Government National Mortgage Association (GNMA)
Known as Ginnie Mae, this is an agency of the US Department of Housing and Urban Development. The agency guarantees, backed by the full faith and credit of the US government, mortgage-backed securities issued by private institutions. The agency's dual mission is to provide affordable mortgage funding for all Americans while creating high-quality investment securities that offer safety, liquidity, and an attractive yield.

Since Ginnie Maes are mortgage securities, they pay interest as well as return of principal with each payment. Ginnie Mae securities are sold in large denominations-usually $25,000. But you can buy Ginnie Mae mutual funds, which allow you to invest more modest amounts.
 
 
 
Grace period
A grace period is the time between the date a credit card bill is calculated and sent to you and the date the payment is due. When there's a grace period, you owe no finance charges on purchases you make during that period if you've paid your previous month's balance in full and on time. If your credit card has no grace period, you'll be charged interest from the moment you buy something with your credit card until you pay your bill. Many standard, classic, and premium cards have grace periods of 20 to 30 days.
 
 
 
Green fund
A mutual fund that makes investments based on a commitment to social, environmental, or political principles may be described as a green fund, a conscience fund, or a socially responsible fund. Although the returns on green funds have sometimes trailed the performance of those buying more widely to meet their investment objectives, many green funds have strong records, and some have led their sectors in recent years.

Not all green funds stress the same values, however. A fund that shuns the defense industry may buy tobacco company stocks, or one that seeks environmentally friendly businesses may not be concerned about what those businesses manufacture.

If you have strong feelings about how your money in mutual funds is invested, you need to do some research about any fund you're considering and take a look at its portfolio to see what the fund is purchasing.
 
 
 
Gross domestic product (GDP)
The total value of all the goods and services produced within a country's borders are described as its gross domestic product. When that figure is adjusted for inflation, it is called the real gross domestic product, and it's generally used to measure the growth of the country's economy. In the US, the GDP is calculated and released quarterly by the Department of Commerce.
 
 
 
Growth
Investment growth is an increase in the value of an investment over time. Unlike investments that produce income, those that are designed for growth don't necessarily provide you with a regular source of cash. A growth company is more likely to reinvest its profits to build its business. If the company prospers, however, its stock typically increases in value.

Stocks, stock mutual funds, and real estate are typical growth investments, but some stocks and mutual funds emphasize growth more than others.
 
 
 
Growth and income fund
These mutual funds invest in securities that provide a combination of growth and income. These funds generally funnel most of their assets into common stocks of well-established companies that pay regular dividends and increase in value at a regular, if modest, rate. Some or all of the balance may be in high-rated bonds.
 
 
 
Guaranteed investment contract (GIC)
A GIC (pronounced gick) is a promise to preserve your principal and to provide a fixed rate of return when you begin to withdraw from the contract, typically after you retire. You can invest in a GIC through a salary-reduction plan, such as a 401(k) or 403(b) sponsored by your employer, provided that investment option is offered.

Because of their fixed rates, GICs are vulnerable to inflation. And you may have to pay a penalty if you decide to change from a GIC to a different investment. Insurance companies that offer GICs assume the risk that the rate they earn on their investments will outperform the rates they've guaranteed on the GICs.
 
 
 
Guaranteed renewable policy
Your insurance company can't cancel a guaranteed renewable life insurance policy as long as you pay the premium on time. With this type of policy, your payments can be increased only if they're raised for everyone with the same policy. Today, all newly issued policies are guaranteed renewable.
 
 
 
Guarantor
If lenders are concerned about your income, your credit history, or other risk factors when you apply for a loan, they may require a guarantor, or cosigner, who signs the loan with you and agrees to pay your debt if you default. For example, lenders may fear that your income may not be high enough to meet your payments if you encounter any unexpected financial setbacks.

Laws governing who may serve as a guarantor vary from state to state. Some states require that your guarantor be a citizen of the state where youre obtaining the loan, while others will accept guarantors from out of state as well.

 
 

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