Glossary of Financial Terms starting with Alphabet ‘G’

Glossary of ‘Financial Terms’ starting with Alphabet ‘G’, i.e. ‘Meaning’ or ‘Definition’ of Common and Unusual terms relating to Accounting, Auditing, Company Law, GST, Income Tax, Investments, etc., along with the ‘Context’ in which they are used.


Cutting in rates. It is the practice of depriving a client a higher rate while selling or lowest rate while buying over and above the brokerage.

Garage (U.S)

One of the small trading areas just off the main trading floor of the New York Stock Exchange.

Gilt Edged

A term used to describe a bond, generally issued by the Government or issued with a Government Guarantee so much so that there are no doubts about the ability of the issuer to pay regular interest and the principal amount to the bond holders.

Gilt fund

Fund that invests exclusively in government securities.


A global after-hours electronic trading system.

Global Depository Receipts

Any instrument in the form of a depository receipt or certificate (by whatever name it is called) created by the Overseas Depository Bank outside India and issued to non-resident investors against the issue of ordinary shares or Foreign Currency Convertible Bonds of issuing company.

Golden Handcuffs (U.S)

A contract between a broker and brokerage house, offering lucrative commissions, bonuses and other benefits as long as the broker stays with the firm. Upon leaving, the broker must return much of the compensation.

Golden Parachute (U.S.)

A generous compensation contract awarded by the management to themselves in the anticipation of a takeover.

Golden Share

A share with special voting rights that give it peculiar power vis-a-vis other share. The term applies particularly to share retained by a government after privatisation. If a government wishes to sell off a company in a sensitive industry (defence, say) and yet retain control, it can hold on to a golden share. This might give it the right to veto any takeover bid.

Good Delivery

Proper delivery by a seller to the buyer of the securities without any defect so that they can be transferred without any additional documentation.


The part of value of a business that is based on good customer relations, high employee morale and other factors.

Grave dancer

An acquirer who searches for bargains often among companies in dire financial straits or in bankruptcy.


Common practice in the United States in the merger-mad 1980s. Somebody buys a larger chunk of share in a company and threatens to make hostile bid for the company. To buy him off the company buys back the shares at a much higher price than the greenmailer paid for them. So disgusted were ordinary Americans with this practice that they passed legislation which imposed an onerous tax on any profit made from greenmail.

Green shoe option

Green Shoe option means an option of allocating shares in excess of the shares included in the public issue and operating a post-listing price stabilizing mechanism in accordance with the specific provisions in DIP Guidelines, which is granted to a company to be exercised through a stabilising Agent.

Grey Knight

One who offers to buy shares of the bidding company as an aid to the defence.


When used in connection with dividend or interest implies amount without any deduction of tax etc.

Gross spread

The difference (spread) between a security’s public offering price and the price paid to the issuer by an underwriter.

Growth Fund

Unit trusts or Mutual Funds which invest with the objective of achieving mostly capital growth rather than income. Growth funds are mostly more volatile than conservative income or money market funds because managers invest on shares or property that are subject to larger price movements.

Guaranteed Coupon (GTD)

Bonds issued by a subsidiary corporation and guaranteed as to principal and /or interest by the parent corporation.

Gun Jumping (U.S.)

Illegally soliciting orders before SEC registration is effective. Buying a security based on information that is not yet public (inside information).

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