Glossary (G – I)
A company’s debts expressed as a percentage of its equity capital. High gearing means debts are high in relation to equity capital.
General Obligation (GO) Bond –
A municipal bond whose issuer’s ability to pay back principal and interest is based on its full taxing power.
Ginnie Mae –
Nickname for the Government National Mortgage Association and the mortgage–backed securities it issues.
See Government National Mortgage Association.
Gold – GOX –
The CBOE Gold Index – (GOX) is an equal–dollar–weighted index composed of 10 companies involved primarily in gold mining and production. The index is re–balanced after
the close of business on expiration Friday on the March quarterly cycle.
Good Delivery –
Securities delivered to the broker from the seller that are properly endorsed and in proper order to be delivered to the buyer.
Good–Til–Canceled (open) Order (GTC) –
An order that does not expire at the end of the day it is entered. Instead, it remains in force until it is either executed or canceled. Ameritrade cancels all GTC
orders at the end of the next month after the order has been placed.
Government Bond –
Debt security issued by the U.S. Government.
Government National Mortgage Association (GNMA) –
A government corporation that provides primary mortgages through bond issuances. Its securities are called Ginnie Maes.
Growth Stock –
Stock of a company in a new industry or of a company participating in an emerging industry.
See Good–til–Canceled (Open) Order.
Someone who manages securities in a minor’s account or someone who handles the affairs of an incompetent person.
To reduce the risk in one security by taking an offsetting position in a related security.
A situation where a security is temporarily not available for trading (e.g. Market Makers are not allowed to display quotes).
HH Savings Bonds –
A savings bond that pays semiannual coupon interest, unlike EE savings bonds.
Hit the Bid –
This is the term used for when traders sell to the current posted bid.
House Maintenance Call –
Demand to the customer for additional funds from the brokerage firm because the equity in the customer’s margin account has fallen below the minimum amount allowed
by the firm.
House Requirement –
The minimum amount of equity brokerage firms require margin clients to maintain in the account.
A brokerage firm’s pledging of margin securities at a bank to secure the funds necessary to carry an account’s debit balance.
Immediate–or–Cancel (IOC) –
An instruction on an order that requires execution of as many lots as can be filled immediately, and the rest canceled.
Income Bonds –
Bonds issued when the ability of the issuing company to pay interest is questioned. They are speculative instruments that pay high rates of interest.
Income Stream –
A strategy of arranging bonds so that they produce a consistent series of payments.
The terms of a corporate bond. Also known as deed of trust, it appears on the face of the bond certificate.
Industrial Revenue (ID Revenue, ID Revs, or Industrial Rev) Bond –
A form of municipal bond whose issuer’s ability to pay interest and principal is based on revenue earned from an industrial complex.
Inside Ask –
The lowest price at which someone is willing to sell a security.
Inside Bid –
The highest price at which someone is willing to buy a security.
Inside Market –
The highest bid and the lowest offer prices among all competing Market Makers in a Nasdaq security, i.e., the best bid and offer prices.
Person with nonpublic information on a corporation. Directors, officers and stockholders owning more than 10% of any one class of stock are usually considered insiders.
Insider Dealing –
The purchase or sale of shares by someone who possesses "inside" information about the company; i.e., information on the company’s performance and prospects which
has not yet been made available to the market as a whole and which, if available, might affect the share price.
Interest Rate Risk –
The prospect that Treasury and agency securities will decline in price if economy–wide interest rates rise.
Interim Dividend –
A dividend declared part way through a company’s financial year, authorized solely by the directors.
Intermediate–Term Bonds –
Those maturing five to ten years after original issue.
Used to describe options that the holder would profit from exercising. Call options are in–the–money when the underlying security’s value is greater than the
option’s strike price. Put options are in–the–money when the underlying security’s value is less than the option’s strike price.
Investment Banker –
Investment Trust –
Company whose sole business consists of buying, selling and holding shares.
IPO Date –
The date that the security started publicly trading.
IRA – Individual Retirement Accounts –
A tax–deferred retirement plan created by the U.S. government.
(1) The process by which a new security is brought to market. (2) Any security.
Issue Date –
Month and day that a security is initially issued.
Issued Stock –
Stock sold to the public.