Galla
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.
GLOBEX
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.
Goodwill
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.
Greenmail
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.
Gross
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).
