G - Return to Index
G - Is the Commodity Futures Symbol which represents the February Delivery Month.
G-7 - Is the Group of Seven Nations. The membership consists of Britain, Canada, France, Germany, Italy, Japan, and the United States of America.
GAAP - Is the acronym for Generally Accepted Accounting Principles.
Gamma - Is the second derivative of an option. It measures the expected change in the delta given a change in the underlying instrument.
GAP - Is the term used to described differences or imbalances in asset and liability categories or buckets.
GARCH - Is Generalized Autoregressive Conditional Heteroskedasticity (ARCH). It is a time series approach which models volatility as a function of both previous returns and previous volatilities.
GARP - Refers to Generally Accepted Risk Principles.
GASB - Is the Governmental Accounting Standards Board.
GDRs - Are Global Depository Receipts.
Gearing - Is a measure of exposure. It relates the number of warrants that can be purchased for the same price of the stock. For example, if the stock is trading at 150 and the warrants are trading at 30, then the gearing is 5.00 or 5-to-1.
General Account - Refers to the assets held by the insurance company to back their obligations for guaranteed or fixed-dollar benefits and contracts. Here, the insurance company is at risk. Compare to Separate Account.
General Obligation Bonds - Are securities issued by municipalities. The source of revenue to pay the interest and principal is taxes. These securities are also known as full faith and credit issues because they depend on the municipality's capacity to tax. These issues are often considered to be more stable than Revenue Bonds.
GNMA - Is the Government National Mortgage Association or Ginnie Mae.
Gnome - Is a 15 year maturity, fixed rate pass-through security issued by the Federal Home Loan Mortgage Corporation.
Gold (MBS) Program - Is the Federal Home Loan Mortgage Corporation (FHLMC) program that extended the interest and principal payment guarantee. It also reduced the interest delay to 14 days.
Gold/Silver Ratio - Refers to the monetary conversion rate between one ounce of gold and the appropriate ounces of silver. You divide the one-ounce price of gold by the current silver price, for the same delivery time, and determine the number of silver ounces required for this equation.
This measurement goes back at least to a bimetallic monetary standard.
Good-till-Canceled - Is an order which remains in effect until it is executed or canceled. The cancellation can be predetermined such as can in 2 months (giving a specific time) or left open and not specifying any time. However, many brokerage firms and traders may require ratification of all open orders at the end of the month or other time span of their choosing to minimize errors.
GPM - See Graduated Payment Mortgage.
Grades - Refers to the quality of a potentially deliverable commodity. It can refer to sulfur content for crude, country of origin for coffee or cocoa, or other distinguishing factors which influence the item. Often there is a schedule of premiums and discounts to adjust the invoice or delivery price for grade differences.
Graduated Payment Mortgage - Is a mortgage which frequently has relatively low payments in its early life. These relatively low payments are often insufficient to amortize the principal. Therefore with the passage of time the payment schedule is stepped-up to paydown the early negative amortization, service the interest requirement, and paydown the total principal balance.
Grains - Refers to the commodity futures markets for corn, oats, and wheat. A broader definition would include soybeans.
GRAMSTM - Refers to Global Risk Analysis and Management Systems Software. It is another name, term or reference for RAMSR. See Risk Management and Analysis Software.
Grantor - Is the party who initially sells, writes or grants an option.
Grants - Is the process of initially selling or writing an option.
Green - Is a mortgage backed securities term which indicates mortgages which are not seasoned yet. Typically, a mortgage that is less than 30 months old is considered green.
Green Shoe - Refers to an underwriting allotment which is in excess of the the first stipulated share amount. Depending on demand and/or market stabilizing functions, an underwriter can exercise this option for additional shares. Many new deals now have this option included. Usually, the green shoe is limited to an additional 15 percent of new shares. It was named after the company for which it was the focus of the deal.
Gridlock - Is a condition whereby trading activity ceases or becomes extremely constrained. Frequently, the spreads between bids and offers widen dramatically and volume dries up. Therefore, there are very few, if any, trades.
Gross - Is the aggregate, cumulative or total amount is a quantity measure. It can refer to total long position, total short position, the total par position, total market value, the total futures contract equivalency position or other specified categorization.
Growth Funds - Are mutual funds that invest in stocks of companies which are expected to outperform most other firms. This outperformance is predicated on faster growth than comparable firms in the same industry. Also, these industries can be those which are expected to experience growth rates in excess of an average.
GSCC - Is the Government Securities Clearing Corporation.
GSE - Refers to Government Sponsored Enterprise. Two examples are the mortgage agencies - Fannie Mae (FNM) and Freddie Mac (FRE).
GTC - See Good-till-Canceled.
Guts - Is the purchase or the sale of two in-the-money options. For example, a long guts consists of the purchase of a low strike call and the purchase of a high strike put. A short guts position consists of the sale of the high strike put and the sale of the low strike call.
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Copyright © 1998-2003 Barkley International Inc. All Rights Reserved. - Page created Tuesday, May 19, 1998 by Oasis Management®. Last Modified on Friday, October 19, 2018.