Financial Terms – G

Financial Terms G

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Gadfly – In business, this is a person who attends shareholders meetings and makes suggestions that the board would prefer to reject. They are frequently referred to as corporate gadflies. A gadfly is a species of fly that aggravates horses, cows, and other livestock, according to lay English. Anyone who persistently irritates others such that they respond is a gadfly.

Gadget – small devices or machines that have a specific purpose or function.

Gaia Hypothesis – a theory that contends Earth is a considerably larger object than only the third rock from the Sun. According to the hypothesis, which James Lovelock advanced in the 1960s, Earth functions like a massive, self-regulating cell. It is a living organism that has a significant impact on the chemistry and climate of our planet.

Gains Sharing – a system used by businesses to increase production and decrease waste. Bonuses are given to employees whose productivity increases. Gainsharing, gain share, and gainshare are other names for it. It differs from profit sharing, which is solely dependent on profits. The distribution of profits is based on worker output.

Gallon – an amount of liquid. A British (imperial) gallon is equivalent to 0.83 of an American gallon. A British gallon is equivalent to 4.55 litres, while an American gallon is 3.78 litres. In the thirteenth century, the phrase first used in the English language as a liquid measurement.

Galvanized Steel – if you coat regular steel with zinc you get galvanized steel. Galvanizing makes the steel more resistant to corrosion, i.e., rust.

Gambling – the act or practice of betting money on a likely or unlikely outcome. Most people bet with money. However, your stake could be anything, even the shirt on your back! The verb is to gamble. An individual who gambles is a gambler.

Game Changer – a new element that alters the variables in a situation or environment, whether it be a person or object. As an illustration, a game changer in a sporting event made the losing team win. In the realm of retailing and business in general, the Internet changed the rules of the game. In actuality, the Internet has altered the way we conduct our daily lives.

Games of Chance – games that depend more on chance (luck) than skill. People bet on most games of chance. A game of chance that involves money is a gamble.

Game Theory – the study of how people choose their strategies in various situations, including ourselves. Cooperation and conflict are the formal subjects of this study. Mathematicians study human behaviour in competitive circumstances where the result of one person heavily depends on the actions of others through a field of study called game theory. It’s a strategic game, not a game of luck.

Gamification – adding game-design components to something that is not a game to make it more interesting or engaging. Marketing executives use it to boost willing participation and customer loyalty.

Gaming – the activity of playing video games and esports. The person who does this is a gamer. Gaming may also mean gambling – especially online.

Gantt Chart – a common project manager tool is a horizontal bar chart. It also shows the duration of each activity in addition to when it begins and stops. Some charts actually overflow with information. Because users can view all of the project’s activities “at a glance,” Gantt charts are popular among project managers, supervisors, and other participants.

Gap Analysis – a device that contrasts the present and future states of a business. specifically, the state it aspires to achieve. We also refer to it as a needs analysis, needs evaluation, or needs gap analysis. The distance between a company’s current condition and its desired state is known as the “gap.”

Gap in the Market – there is a need for an unreleased product. The phrase could also be used to describe an existing product that could benefit from an upgrade in order to increase sales. There is a market gap if a product is available, but it cannot be purchased in a certain market. In contrast, if there is a market for the goods in the other market, then there is a gap in this final scenario.

Gap Management – managing assets and liabilities so that income from interest-earning investments offset increases in loan repayments. Increases in loan repayments may occur if interest rates go up.

Gap Ratio – the proportion of rate-sensitive assets to rate-sensitive liabilities in a corporation. When the gap ratio is greater than 1, sensitive assets are more valuable than sensitive liabilities. Sensitive describes an asset or liability’s susceptibility to sizable value fluctuations as a result of changes in interest rates. Additionally, there are the wealth, income, and poverty gap ratios.

Garbage – refers to stuff we throw away. We also use the words rubbish, trash, refuse, and waste with the same meaning. If I think that a person’s statement is completely wrong or untrue, I might say “That is garbage.”

Gas Field – a deposit that is rich in natural gas that we can extract profitably. Since the turn of the century, when the price of natural gas rose, many gas fields have become commercially viable. A gas field may be onshore or offshore.

Gasohol – a gasoline-ethanol blend. Gasohol is approximately nine parts gasoline to one part ethanol (ethyl alcohol). The fuel became more popular when oil prices rose in the 1970s. However, it never caught on in a big way.

Gasoline – a transparent liquid that we use as fuel for our vehicles. Gasoline is highly flammable. It is a derivative of petroleum or crude oil. In the United Kingdom and the Republic of Ireland, people say ‘petrol.’ Gasoline floats in water.

Gateway – The phrase in information technology refers to hardware or software that links many systems or devices together. The phrase can also refer to a gate’s opening, much as a doorway is a door’s opening. When I say that New York is the entrance to the US, I mean that it is the location where you can enter the country.

Gazelle Company – a young business that expanded by at least 20% each year for four years in a row. Particularly, both its workforce and sales increased quickly. They can be referred to as gazelle businesses or just gazelles. Most of them began with at least $1 million in sales.

GDP Gap – or The difference between a country’s actual GDP and its potential GDP is known as the output gap. If everyone had a job, output would be higher while unemployment is high. The GDP gap represents the difference between the current level of high unemployment and the level of national output. The GDP gap could be zero, a positive or negative value. The goal of governments and central banks is zero.

GDP Per Capita – is a population’s GDP per individual. You divide the gross domestic product (GDP) by the nation’s total population to get the per capita statistic. We can determine a country’s relative richness by looking at its GDP per capita. We cannot get that knowledge from GDP alone.

Gearing – the term refers to borrowing money to then make more money. Gearing also represents the proportion of a company’s equity capital that came from loans.

GECF – stands for Gas Exporting Countries Forum. It is a group of countries that represent more than 70% of worldwide natural gas production. There are twelve members and a number of observer members.

Gemology – the study of natural and artificial gemstones and gemstone materials. Gemology is a geoscience; a mineralogy branch. People who study gemology are gemologists; they value, buy/sell, and cut precious stones.

Generally Accepted Accounting Principles (GAAP) – These are the accepted standards and best practises for accounting. Standard accounting practise or accounting standards are other names for GAAP. They are a set of guidelines for creating financial statements.

Generally Recognized Accounting Practice – or GRAP is a set of rules, regulations, and guidelines for public sector accountants. It is the public sector equivalent of GAAP (Generally Accepted Accounting Principles). The term ‘GRAP’ is common in South Africa.

General Equilibrium – a situation in which supply and demand are perfectly balanced, or when they are equal to one another. Walrasian general equilibrium is another name for this state, which economists claim we should aim towards but can never achieve. Partial equilibrium, in contrast, occurs when demand and supply are equal in only a portion of the economy, in a particular market.

Gender gap – differences between females and males in areas such as achievement, attitude, decision-making, pay, and opportunity. Closing the gap is a major global concern and one of the UN’s sustainable development goals.

Generalization – refers to jumping to conclusions. The act of using very little evidence to make broad conclusions. People who generalize say that something is true all the time when it is only true some of the time.

General Ledger – a chronological account record that an entity uses to keep track of financial transactions, including income and expenses. Also known as ‘the book of final entry’. Transactions are categorized and posted into the general ledger account.

General Manager – a person in charge of a small company’s whole operation or a particular division of a major company. General managers are at the bottom of the management hierarchy, below CEOs and Managing Directors. For instance, the CEO of McDonald’s is in charge of the entire corporation whereas the general manager is in charge of one restaurant.

General Strike – a strike that affects all or most sectors of the economy and a large geographical area. A general strike may affect a city, country, state, or even the whole country. Major general strikes bring the whole country to a standstill.

Generative Learning – a theory that involves incorporating new information with knowledge that we had already stored in our long-term memory. In other words, new data must attach itself to our existing knowledge.

Generational Accounting – a technique that examines how public spending may impact both present and future generations. more specifically, taxpaying generations. It assesses whether future taxpayers will bear an unjust burden, to put it another way.

Generation Gap – the difference between generations in how they dress, talk, perceive things, behave, vote, etc. Sociologists say that misunderstandings between difference age groups is a cause of many arguments.

Generation Jones – persons born in the years 1954 through 1965. Some claim that 1954 was the commencement of the period. The Lost Generation is another name for it. Sociologists initially grouped Generation Y and Baby Boomers together. They eventually realised that Generation Jones was a separate generation. Baby Boomers are idealistic, whereas Genjonesers are more pessimistic.

Generation X – individuals born between 1965 and the late 1970s. The generation is also known as Gen X. Gen Xers make up Generation X. They are stereotyped as being cynical, aimless, and disgruntled people. They are referred to as the MTV Generation.

Generation Y – relates to those who were born during the early and mid-1980s and the early years of this century. There are several names for this generation, including Gen Y, Boomerang Generation, Millennial Generation, and Echo Boomers. Compared to their predecessors, they are more coddled and self-centered.

Generic – either refers to goods that companies sell with no brand name or trademark, or characteristics related to a whole class of goods. Generic drugs, for example, compete with brand name drugs. Generic products are cheaper than brand name goods.

Generic appeal – a form of advertising that highlights a product’s group or category rather than the actual product. To improve sales of its broccoli, for instance, a corporation might first urge kids to eat their vegetables. When vegetable consumption has greatly increased, the company then markets its own brands.

Genesis Block – the very first blockchain block. When the cryptocurrency Bitcoin was created in 2009, the first genesis block was mined. A blockchain is made up of blocks, which are records that are connected to one another. Except for the genesis block, they are all filled with information from the block before them. Since the genesis block is the first in the chain and has no prior blocks, it contains no data from a previous block.

Genetically Modified Food – or Food whose source has undergone genetic modification or alteration is referred to as GM. For instance, GM beef is produced from cattle that have had their genetic codes altered by genetic engineering. GM food is a contentious issue. Some claim that it is better for farmers and safer for consumers. Others, though, contend that it is harmful to both the environment and human health.

Genetic Engineering – refers to the particular modification of an organism’s phenotypic (characteristics) through direct manipulation of its DNA. Fish, mammals, including humans, birds, and even plants can be genetically modified. Geneticists predict that in the future, we will be able to completely eradicate diseases that people inherit from their parents.

Gentleman’s Agreement – or An informal, verbal, non-binding gentleman’s agreement involves at least two parties. The performance of the agreement is conditioned upon the personal honour of each party. In most circumstances, you cannot sue a party who violates the agreement.

Gentrification – occurs when money is spent to improve a town area that is deteriorating or when wealthy residents move in. The neighbourhood gets “nicer,” more sought-after, and more pricey. The phrase is frequently used in a pejorative manner. Low-income families may be uprooted as a result of gentrification.

Geotargeting – targeting consumers you want to attract according to where they are, live, or work. It is also called location-based marketing and geofencing.

Geothermal Energy – using the Earth’s internal heat to generate electricity and heat homes and buildings. We have been using geothermal energy for thousands of years. Most of Iceland’s electricity comes from geothermal energy.

Giffen Goods – things whose demand increases as their price rises. Not Giffen products, but in the vast majority of situations, a price increase is followed by a decline in demand. Giffen commodities are referred to as “inferior items” and are typically affordable staples like rice in Asia, tortillas in Mexico, and bread in Victorian Europe. Sir Robert Giffen, a Scottish economist and statistician, is the name of the phrase.

Gift – This is a gift that is given from one person to another. The term can also refer to a unique talent that a person possesses. “John has a gift for music,” as an example. There are certain guidelines for gift-giving and receiving in business. The laws are determined by the region and the sector.

Gig Economy – where firms recruit temporary, part-time, and freelance labour rather than full-time, permanent employees. Finding a job for life in a gig economy is quite challenging. Most nations in North America and Western Europe have shifted toward gig economies after the 2009 global financial crisis. According to economists, this pattern will persist. A gig worker is a person whose primary source of income comes from gig employment.

GIGO – acronym for ‘garbage in, garbage out.’ It is a mathematics and computer science concept that the quality of the data going in determines the quality of what comes out. If you feed garbage into a computer, it will produce garbage, or faulty data.

Gilts – bonds that the British government issues. They are the equivalent of American Treasury securities. We also call them gilt-edged securities. When the British government needs to borrow money, the Bank of England issues gilts.

Gilt-Edged Securities – bonds issued by either governments or incredibly strong, trustworthy, premium businesses. To raise money, i.e., borrow money, they issue them. Unless otherwise specified, the phrase generally refers to government bonds in the UK and the Commonwealth.

Gini Index – a way of comparing income or wealth distribution between countries. We also call it the Gini Coefficient. Economists and statisticians also use it to measure consumption expenditure distribution.

Glamour Stocks – shares of a firm that many investors predict will increase in value faster than the rest of the market. The financial press frequently has a favourable opinion on glamour stocks. But occasionally there is too much hype, and when their star power wanes, they falter.

Global Analyst Research Settlement – a fund that US investing companies were required to establish as a result of the 2003 mutual fund controversy. US investment banks had encouraged fraud against investors. The fund’s goal was to inform consumers and small-scale investors about money and investment.

Global Economy – The phrase either describes the magnitude of the global economy as a whole or the interdependence of the economies of different nations. In other words, we use the phrase while discussing the global GDP or how events in one country have an impact on numerous others. That is why it is said that “we live in a global economy.”

Global Financial Crisis – a global financial crisis or economic collapse as opposed to one that only impacts one nation. Banks typically stop lending, companies fail, and consumer spending plummets. The taxpayer must bail out several banks since they are unable to survive. Recessions frequently come before global financial crises.

Global Fund – a mutual fund that invests globally, including the investor’s home country (in the UK: unit trust). In contrast, an international fund makes investments all around the world but not in the investor’s own country. The Global Fund, established by Microsoft billionaire Bill Gates, is also known as the Global Fund to Fight AIDS, TB, and Malaria.

Global Investment Performance Standards (GIPS) – guidelines and regulations for investment firms. Investment firms in thirty-seven countries across the world adhere to the GIPS standards. Hence, investors have access to reliable performance data.

Globalization – the process by which businesses and organisations begin functioning across national boundaries and gain influence globally. Additionally, the phrase alludes to the global dissemination of beliefs, concepts, and meanings (cultural globalization).

Global Marketing – the efficient organisation, creation, placement, and promotion of products and services on the global market. Global marketing has been increasingly important for many businesses ever since the introduction of the Internet and e-commerce. Even tiny enterprises now sell internationally.

Global Positioning System (GPS) – a group of satellites that circle the Earth and transmit accurate messages about their positions. Signals are acquired using GPS receivers. The receivers are used to determine the precise position, velocity, and time of objects like vehicles, ships, missiles, etc.

Global Recession – a period of global economic contraction that impacts numerous nations in various continents. Either the rate of global GDP growth has drastically decreased, reached zero, or is declining. According to the IMF, a fall in capital flows, oil consumption, industrial production, and commerce must all be present for there to be a global recession. It also implies that unemployment must be increasing. In addition to a general downturn in the global economy, several macroeconomic indicators are also present.

Global Sourcing – the act of purchasing goods and services from the international market across international borders. When businesses want to take advantage of worldwide efficiency in the delivery of goods or services, they choose global sourcing.

Global Strategy – a strategy that an organization creates when it wishes to compete and expand in other countries. It is a strategy that companies pursue when they want to operate beyond their borders.

Global Warming – the consistent rise in the average temperatures of our atmosphere and oceans. These temperatures are rising at progressively accelerating rates. If we do not reduce our greenhouse gas emissions, we will have a serious problem by the end of this century.

Global Warming Potential (GWP) – a measure of the amount of energy one ton of atmospheric gas absorbs compared to carbon dioxide over a specific period. In other words, GWP tells us how much heat a gas traps in the atmosphere.

Gloss – has numerous meanings and is both a verb and a noun. Applying a glossy coating to a surface is one meaning of the verb, and swiftly discussing a negative subject is another. It is a surface lustre that we apply, as well as something that appears to be superficially alluring yet is not. The phrase is often used to describe a glossary.

Glossary – a list of words with definitions. A glossary frequently contains terminology that are technical or specialised. A banking glossary, for instance, contains terms and their definitions particular to the banking industry. A glossary can be found at the conclusion of both articles and volumes. They include lists of terms the author used that are obscure or challenging.

Glut – The phrase refers to an oversupply, which occurs when the supply of an item or service considerably outweighs the demand. Prices drop, stock levels (or inventories) increase, and occasionally businesses have to lay off employees when there is a surplus. The verb “satisfy” denotes overeating, over feeding, or overindulgence.

Goal – in business it describes where or how a company hopes to be at a specific future date. The term, unlike an ‘objective,’ does not specify the steps the company will take to get there. Companies usually list their goals and objectives in their business plan.

Godfather offer – A business raider makes this tender offer while attempting a hostile takeover. It would be foolish to refuse the offer. The bidder has made the shareholders of the target company a very generous, or much above market price, offer to buy their shares. The phrase is derived from Corleone’s line, “I’m going to make him an offer he can’t refuse,” from the novel and movie The Godfather.

Going concern – a prosperous business that is operating right now. To put it another way, it is prospering. Accountants speak of a “going concern.” For at least the upcoming year, they anticipate the business will be active and prosper. A going firm hasn’t filed for bankruptcy or liquidated its assets (liquidated its assets).

Going Forward – a relatively new term that means ‘from this point on’ or ‘from now on.’ It suggests that from now on, there will be a different approach or behavior. Many people dislike the term; they say it has no meaning.

Gold – a precious metal that serves as a store of wealth and a form of investment. Humans have been investing in gold, and using it in jewelry, art and coin-making for thousands of years.

Golden Handshake – Benefits that a worker receives when leaving a company, such as cash, stocks, or other items. The golden handshake could be substantial when executives are forced to depart. In reality, a few have cost the business hundreds of millions, if not billions, of dollars. In some cases, the golden handshake serves as a reward for years of loyal work, while in other others, it serves as an attempt to head off issues. For instance, the corporation might provide a sizable financial inducement if they want someone to depart without a fuss.

Gold Rush – an onrush of prospectors seeking their fortune after word gets out that somebody found gold. When many people come to one area aiming to get rich by finding gold, we have a gold rush. There were many gold rushes in the 19th century.

Gold Standard – a system where the worth of a currency is expressed in terms of gold. During the Great Depression, the majority of nations gave up on the system (1930s). But the United States persisted until the 1970s. Comparing the system to a variable exchange rate Both methods have advantages and disadvantages.

Goodhart’s Law – a hypothesis that contends a measure ceases to be a good measure once it becomes a target. Professor Charles Goodhart first presented the notion in the 1970s. Simply put, it indicates that when a government agency, like the central bank, takes action, firms and individuals frequently discover a workaround. In other words, they get around the restriction.

Good Laboratory Practice – or GLP refers to approved procedures that scientists using laboratories must follow. GLP seeks to guarantee high levels of quality, dependability, and safety. The phrase can also be used as a plural noun, as in Good Laboratory Practices.

Good Manufacturing Practice (GMP) – a system for ensuring that foods, drugs, and medical devices are produced and controlled according to quality standards. It is a set of guidelines and rules that manufacturers and sellers must follow.

Good Offices – refers to the authority and influence that a person or their position have. When that influence is employed to benefit another individual, group of people, or organisation, we use the phrase (s). For instance, the UN Secretary-General convinced a head of state to sign the pact by using his influence.

Goodness of Fit – a phrase used by statisticians. It deals with how well a financial model’s predicted values match the actual values. The phrase is also used by psychologists and parenting specialists to describe a person’s temperament and compatibility with their surroundings.

Goods – 1. Things we make for consumers to buy (consumer goods) or things we buy to make other things (capital goods). 2. Our possessions, as in “There are all my worldly goods.” 3. Carrying cargo rather than passengers, as in “A goods train.”

Good Standing – refers to any entity that is current with the state’s, government’s, association’s, or agency’s obligations. A person in good standing is somebody who has the respect of other members of the community.

Good Til-Canceled (GTC) Order – an order to exchange a security at a specified price. The order is open until it is completed or cancelled. With a GTC order, the brokerage company does not usually hold the order for longer than 90 days.

Goodwill – In the context of business, the phrase refers to a company’s established reputation as a quantifiable asset that is included in a calculation of the enterprise’s entire value. The company’s goodwill makes up the difference when the whole is worth more than the sum of its parts. If a predator offers $12 billion to buy a firm with a $10 billion book value, the $2 billion premium is the goodwill value of the company.

Go Public – when a private company turns into a publicly listed company, or a public company. Public company shares are traded on a recognized stock exchange. When a company goes public it carries out an IPO (initial public offering).

Government – 1. The process or manner of governing a nation or a system we use for controlling a country. 2. A group of people who run a country and make decisions at national level.

Government National Mortgage Association – A US government-owned organisation founded in 1968 with the goal of increasing home ownership across the country is known as Ginnie Mae or GNMA. It assures investors that principle and interest on mortgage-backed securities will be paid on time.

Government Shutdown – occurs if a new budget to fund the federal government and its agencies is not approved by the US Congress. There are hundreds of thousands of unpaid layoffs among federal employees (furloughed). Government shutdowns only occur in the advanced economy of the United States.

Grace period – the amount of time someone has to meet an obligation after its deadline with little or no penalty.

Graduated Payment Mortgage Loan (GPM) – a mortgage with initially low monthly payments that progressively rise to a predetermined level over time. Younger borrowers who are not making a lot of money now but anticipate seeing an increase in their income in the future are drawn to this form of loan.

Grant – money donated by a group, local government, national government, charity, or individual for a particular cause. Because the recipient is not required to repay it, it differs from a loan in that sense. Typically, grants are given for things like research, education, home improvements, expanding or improving community projects, or starting a business. The verb “to grant” can indicate many different things, such as “to give,” “to accept,” “to take for granted,” “because,” or “to acknowledge that something is true.” Some people also use it as their initial name and last name.

Graphene – the world’s toughest, thinnest, and lightest material that we are aware of. It has a strength that is around 200 times greater than the strongest steel. It is also the planet’s best conductor of heat and electricity. It is made up of just one layer of pure carbons, which are organised in a honeycomb-like hexagonal lattice. It is seen as a 2D item because of how thin it is.

GRAS – signifies generally accepted as safe. It is a term used by the US Food and Drug Administration (FDA) to describe additives to food. The majority of our foods contain thousands of additional ingredients. Whether or not to grant each one a GRAS status is decided by the FDA.

Gray Market – (British: Grey Market) a market where the channels of distribution are prohibited. In the securities market, the phrase may refer to trading that occurs before a new stock officially begins trading. a market in marketing where the majority of customers are over 60.

Great Depression – the most severe economic downturn to hit the USA and the world in modern history. Over a three-year period, global GDP shrank by 15%. Unemployment in the US reached 20% of its population (15 million).

Great Recession – the longest period of economic decline since the Great Depression of the 1930s for many countries. From 2007/8 to the end of 2009, many countries experienced negative GDP growth.

Greenhouse Gas – an atmospheric gas that absorbs and emits radiation, i.e., it keeps the planet’s surface warm. Carbon dioxide and methane, for example, are greenhouse gases. There is a global effort to reduce greenhouse gas emissions.

Gresham’s Law – a financial theory that asserts that when there are two different currencies, people will hoard the more valuable one while using the less expensive one to make purchases. Imagine there were gold-plated $5 coins available. Then, $5 steel coins were produced by the government. People would keep the gold ones and just transact with the steel ones. Gresham’s law states that it wouldn’t be long before there were no gold coins in circulation at all. The phrase has Sir Thomas Gresham’s name, a 16th-century financial advisor to Queen Elizabeth I.

GRID – stands for Global Resource Information Database. It is part of the United Nations Environment Program (UNEP) that focuses on earth processes and the sound management of the environment. GRID works at global, regional, and national levels.

Growing Equity Mortgage – a type of mortgage loan which has a fixed rate interest rate and monthly payments that rise over time – there is never a negative amortization associated with this loan. The first payment is an amortizing payment.

Gross Domestic Product (GDP) – a measure of production that is equal to the all the goods and services that an economy produces within a set time period. GDP data are followed very closely by economists, investors and governments.

Gross National Product (GNP) – a measurement of the total value of all final goods and services produced by a nation, including the income received by its residents (but not revenue received by foreigners participating in the nation’s economy). GDP, which is fundamentally different, is frequently confused with it.

Gross Income – all income that an entity makes (no matter the source). It represents how much income is generated before taxes. The term can refer to corporations or individuals.

Growth Investing – an investment strategy that prioritizes capital appreciation, rather than annual income. It contrasts with value investing. The person is a growth investor.

GST – stands for General Systems Theory. It is a hypothesis that states that many fundamental organising principles are shared by all complex systems. Whatever their goals, they all adhere to these ideals. GST focuses more on the structure of systems than their functionality.

GSTP – represents the Global System of Trade Preferences. Between emerging economies and LDCs, it is a favourable trade deal (less developed countries). In 1988, the Agreement was ratified by the founding members. The majority of the time, this entails either raising or lowering import tariffs. No reciprocity is required from LDCs.

Guaranteed Investment Contract (GIC) – also known as a ‘funding agreement’. It is a contract that instructs the repayment of the principal and a floating or fixed interest rate for a set period of time.

Guaranteed Mortgage Certificate (GMC) – a bond that has a mortgage as financial security. Since 1975, the Federal Home Loan Mortgage Corporation (Freddie Mac) has been issuing GMCs. Interest and principal are paid twice a year, and it has a guaranteed average life.

Guest Worker – someone who spends a brief amount of time working abroad. Both legal and illegal workers are not guest workers. They have authorization to temporarily work there. They go back to their home nation after their contract expires.