19 Dec 2022
Generally Accepted Accounting Principles. For pensions accounting in the UK, GAAP will be FRS17 and in the US FAS87.
Growth at right (or reasonable) price; a description of the approach some fund managers use to identify potential share purchases.
See gross domestic product.
a.From an accounting point of view, the amount of a company’s total borrowings divided by its share capital. High gearing means a proportionately large amount of debt, which may be considered more risky for equity holders.
b.In investment analysis, a highly geared company is one where small changes in underlying conditions produce big swings in profits. Gearing can be
financial or operational, if, for example, a company has large fixed overheads.
general partner (private equity) Manager of the limited partnership — typically the investment manager. (See limited partnership [private equity].)
Bond issued by the UK government. The payments on the gilt may be either fixed (fixed-interest gilt) or increase with inflation (index-linked gilt). So called because certificates used to be gilt-edged.
Practice of selling gilts and simultaneously entering into an agreement to repurchase them at a fixed time and price. A technique used to fund temporary cash shortfalls and long gilt positions, or to gear portfolios by borrowing against gilts. Buying gilts with a resale agreement is called a reverse and is a means of lending cash on a collateralised basis.
See Global Investment Performance Standards.
Global Investment Performance Standards (GIPS™)
Set of minimum performance presentation standards for investment managers. Maintained by the CFA Institute and intended for global use. global tactical asset allocation Form of tactical asset allocation that employs derivatives, among other strategies, to take positive and negative positions on equity and bond mandates and currencies that the manager’s research indicates are relatively attractively/unattractively valued.
See gross national product.
Bond issued by a government. In the UK these are called gilts.
Describes the organisation, control and administration usually carried out by a body or committee.
Set of financial ratios pertaining to derivative valuation, designated by the Greek letters delta (∆), gamma (γ), rho (ρ), theta (θ) and vega (ν). They are used to represent the factors that result in changes in value of a derivative contract.
Investment which actively considers a company’s effect on the environment.
Colloquial term for the US dollar.
Gross asset value (real estate)
Sum total of property values held in portfolio (See also net asset value [real estate].)
Gross domestic product (GDP)
Total market value of finished goods and services produced in a country in a given year.
Gross national product (GNP)
Gross domestic product with the addition of income from abroad by domestic residents, minus income earned in the domestic markets accruing to foreigners abroad.
Fund that has the aim of achieving capital appreciation, typically an equity portfolio that has the aim of achieving capital appreciation by investing in growth stocks.
Investor who seeks out growth stocks.
Stock that is expected to achieve above average earnings growth. Growth stocks normally have a high P/E ratio relative to the market as a whole, as investors anticipate that earnings will increase in the future.
Investment style focussing on growth stocks.
A measurement of how fast delta changes, given a unit change in the underlying futures price.
When a market opens or trades through the specified level of a market order without actually trading at the price of the market order.
Also known as leverage. To use borrowed funds (trading “on margin”) to purchases a financial instrument, which increases your exposure to the market with a lower capital requirement. Results in magnified profits and losses.
A global after-hours electronic trading system.
Good Till Cancelled (G.T.C)
An order left with a dealer to buy or sell at a fixed price. The order remains in place till it is cancelled by the client.
Large grain elevator facility with the capacity to ship grain by rail and/or barge to domestic or foreign markets.
Gross Domestic Product (GDP)
The value of all final goods and services produced by an economy over a particular time period, normally a year.
Gross National Product (GNP)
Gross Domestic Product plus the income accruing to domestic residents as a result of investments abroad less income earned in domestic markets accruing to foreigners abroad.
Gross Processing Margin (GPM)
The difference between the cost of soybeans and the combined sales income of the processed soybean oil and meal.