Glossary List G

Gamma

Gamma is a financial strategy in which rate of change in an option’s delta per 1-point move is calculated while determining the prices of underlying assets. These are with respect to financial commodities like derivatives, options, shares, securities or index values.

Gamma Hedging

Gamma is quite an invincible product when it comes to hedging investment values. A reduced gamma range is what helps investment commodities maintain their optimal hedge over a wider price range. Hence gamma hedging is the technique used by investment traders and brokers to help investors earn enhanced returns over their investment.

Gap analysis

Gap analysis is nothing but a precise comparison between the actual performance with the envisaged level of performance or potential. This helps the entity perform at a level that is expected out of the unit so as to achieve enhanced productivity and profitability levels.

Gap insurance

Gap insurance is clearly defined as an auto insurance policy, owners take to protect themselves from the losses that arise when the amount of compensation on a collision damage does not fully cover the vehicles’ overdue on lease payments or financing arrangement.

Garbage fees

These include unnecessary forms of documentation fees that are added to a mortgage’s closing account to increase the lender’s profit, while closing the aforesaid account. Garbage fees take names like administrative fees, loan appraisal fees, application fee, document’s reviewing fees and so on.

GBP

GBP is the abbreviated form of Great British Pounds. GBP is the widely accepted currency across the United Kingdom or UK.

GDP

GDP stands for Gross Domestic Product. It is the sum total in terms of monetary value of the total volume of finished goods and services produced throughout the nation as calculated quarterly or yearly.

GDP price deflator

GDP price deflator implicitly means price deflator itself. It relates to the total monetary value of newly produced final goods and services circulated within the economy.

General business tax credit

General Business Tax Credit or GBTC is clearly defined as the actual value of the amount of credits applied against a defined source of income while calculating tax returns. GBT can usually be carried forward for number of years but can also be carried back in certain exceptional scenarios.

General insurance

General insurance is an insurance product aimed at safeguarding or providing protection against unforeseen losses arising from damage of property and pays up for the loss of an asset. General insurance premiums are required to be shelled out monthly, bi-monthly, quarterly, half-yearly or as an annual term fees.

Gilt edged security

Gilt edged securities are high grade bonds issued by either the Govt. or a corporate firm. These pay consistent dividends or interest over investors’ capital fund.

Global indices

Global indices are rates of exchange relied upon at a bustling stock-exchange market. Global indices provide data with respect to daily highs, daily lows and changes in values of indices of financial commodities.

Gold funds

Gold funds are those investment products that purely invest in various forms of gold. These take the shape of physical gold or forms of stocks pertaining to gold mining companies.

Government securities

Government securities are bonds such as treasury bills, savings bonds and notes that are issued by the Govt. authority. These bonds offer fixed rate of returns and dividend payments over the investors’ principal money.

Graph theory

Complicated interrelationships like portfolio theory and index replication are made available through concise graphical representations. Making a financial analysis via graphs is what is known as financial graph theory.

Gross National Product or GNP

Gross national Product is the sum total of the monetary value of all goods and services produced at the country for one full year plus amount of net income from foreign investments.

Gross Registered Tonnage or GRT

Gross Registered Tonnage or GRT is clearly defined as the volume of cubic space across the deck of a voluminous ship. The space accommodates fuel, cargo, passengers and crew members of the ship.

Group policy

Group policy is defined as a clustered insurance policy, where a group of two or more nominees form a part of the insurance scheme. Employees’ Provident fund or EPF is a classic example of group policy where a set of employees are covered by the same insurance scheme, as such.

Growth fund

A growth fund is a fund that invests money with diversified stocks purely aiming at capital appreciation as the primary norm. The stocks come with little or no dividend pay-outs. The funds accumulated through a growth fund are re-invested as earnings back into the business facilitating growth, expansion or diversification of the business.

Growth Schemes

Growth schemes are related to high-end mutual funds that purely lure investors with enhanced rates on return and lead to growth of investors’ capital.

Guaranteed Surrender Value

Guaranteed Surrender value is the assured sum of premiums as borne by the policy holder with exclusions like premium paid for the first year and other forms of book value charges as enforced on the policy account as such. Premiums have to be paid for at least three consecutive years, if the holder wants to withdraw the surrender value from the policy.

Guaranteed Survival benefit

Guaranteed survival benefit, relates to the amount policy holders are entitled to, upon completion of the policy tenure itself or somewhere mid-way when the policy is still on.