Your Free Online Legal Dictionary • Featuring Black’s Law Dictionary, 2nd Ed.

Category: Finance Dictionary

GLOBEX

Electronic trading platform for futures and option contracts that is the Chicago Mercantile Exchange. It is a virtually continuous worldwide market. It opens for trading Sunday evening, staying open roughly 23 hours

GOING INTO THE TRADE

Just before an order hits the exchange floor, stock placement is expected as well as a trader’s position ability to handle it.

GOLDEN HANDSHAKE

A severance or an incentive to leave the firm with no fuss or controversy. Generous bonus offered to a director, employee, or partner at termination. Also refer to golden boot.

GOODS RECEIVED NOTE

Record at the point of receipt of goods received. Often compared to a purchase order before issuing payment, this record confirms receipt of all goods.

GRADIENT

Slope angle, be it an incline or a decline. Three typical ways to measure it: (1) The difference between the ground or horizontal, the ‘grade line’ and the incline or decline stated

GRANULARITY

Conveys the perception of great or greater detail. Typically used when discussing a model or decision making process. More granularity means greater detail. An example is the level of detail, or granularity,

GREEKS

RISK measures for DERIVATIVES that are used to determine the price sensitivity of contracts to changes in the UNDERLYING ASSET (DELTA, GAMMA), VOLATILITY (VEGA), passage of time (THETA), and INTEREST RATES (RHO).

GROSS BOOK VALUE

Asset’s original, historical purchase price, depreciation deductions excluded.

GROSS NATIONAL PRODUCT (GNP)

National GDP plus overseas income from in-country companies’ foreign subsidiaries as well as nationals living out of the country.

GROSS SPREAD

The term for gross income in the securities industry. The difference of investor’s purchase cost and issuer’s sale . Underwriter’s fee, issue manager’s fee, and security selling firm discount are all items

GROUP CERTIFICATE

Lists group benefits given to each group plan policyholder. Typically, this is a certificate .

GROWTH STAGE

The third state in a life cycle when revenue raises fast and profits peak. The decline begins after this.

GUIDANCE DOCUMENT

Guidelines written to give broad advise on procedure instead of precise requirements and standards.

HABIT BUYING

Buying the same brand over and over. It is due to lack of negativity rather than loyalty. It involves low involvement products.

HALOGENATED HYDROCARBON

A hydrocarbon with atoms of bromine, chlorine, or flourine from group 17. The production of these hydrocarbons are restricted. AKA halocarbon.

HANGING INDENT

A paragraphy style when the first ile is on the left margin and othes are indented the same space. It is in data lists. AKA outdenting.

HARD METAL

A metallic carbide made of tantalum, titanium, tungsten, and vanadium. It is used in tools or steels. AKA cemented carbide.

HARMONIZED INDEX OF CONSUMER PRICES (HICP)

An INFLATION index widely used throughout the European Union that measures changes in consumer prices. Unlike various other CONSUMER PRICE INDEX measures, HICP excludes owneroccupied rental costs. See also PRODUCER PRICE INDEX,

HEADLINE EFFECT

Stating that negativenews has an effect in companies and economy. It can cause less spending.

HEAT ISLAND EFFECT

A dome that is made over an urban or industrial area. The air is warmer above ground level and traps pollution. It is noticed in the morning and night and leaves mid

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