Stock market terms starting with G

Gambler's Fallacy Market Psychology & Behavioural Finance qualitative The belief that an independent random outcome is due to reverse after a run in one direction. Test: the predicted probability of the next outcome changes on the basis of prior independent outcomes

Gamma Derivatives, Futures & Options ratio (x, times) The rate at which an option's delta changes for a one-unit change in the underlying. Gamma = Change in Delta / Change in Underlying Price

Gap Technical Analysis & Chart Patterns % A discontinuity on a chart where a period's entire range lies away from the previous period's range, with no trading in between. Gap % = (Current Open - Previous Close) / Previous Close x 100

Gap Down Technical Analysis & Chart Patterns % An opening price below the previous period's low, leaving an unfilled space on the chart. Test: Current Open < Previous Low

Gap Up Technical Analysis & Chart Patterns % An opening price above the previous period's high, leaving an unfilled space on the chart. Test: Current Open > Previous High

GDP Growth Rate Economy, Macro & Market Cycles % The percentage change in real gross domestic product from one period to the corresponding earlier one. GDP Growth = (Current Period Real GDP - Prior Period Real GDP) / Prior Period Real GDP x 100

GIFT City Indian Market, Regulation & Taxation qualitative India's international financial services centre in Gujarat, where transactions occur in foreign currency under a separate regulator. Test: the entity or transaction is located in the International Financial Services Centre and regulated by the IFSC Authority

Gold ETF Funds, ETFs & Index Investing qualitative An exchange-traded fund holding physical gold, whose units track the domestic price of the metal. Test: the fund holds physical gold of standard purity, and each unit represents a stated weight of it

Golden Cross Indicators & Oscillators qualitative The crossing of a shorter moving average above a longer one, conventionally the 50-day above the 200-day. Test: 50-period Moving Average crosses from below to above the 200-period Moving Average

Good-Till-Triggered Order Orders, Execution & Market Structure qualitative A standing instruction held at the broker for up to a year, submitted to the exchange only when its trigger price is reached. Test: the instruction rests with the broker, not in the exchange order book, until the trigger condition is met

Goodwill Financial Statements & Accounting ₹ crore The excess of the price paid for a business over the fair value of its identifiable net assets, recorded as an asset on acquisition. Goodwill = Purchase Consideration - Fair Value of Identifiable Net Assets Acquired

Gordon Growth Model Fundamental Analysis & Valuation ₹ A single-stage dividend discount model that values a share assuming dividends grow at a constant rate forever. Value = Next Year's Dividend / (Required Return - Constant Growth Rate)

Government Security Bonds & Fixed Income qualitative A debt instrument issued by the central government, carrying sovereign credit and used as the benchmark for all other rates. Test: the issuer is the Government of India and the obligation is in rupees

Graded Surveillance Measure Indian Market, Regulation & Taxation qualitative An exchange framework applying escalating restrictions to securities with weak fundamentals or unusual price behaviour. Test: the security meets criteria on net worth, net income, price-to-earnings, market capitalisation or price movement, placing it in one of six stages

Grandfathering Indian Market, Regulation & Taxation ₹ The rule protecting gains accrued before long-term capital gains tax on listed equity was reintroduced in 2018. Deemed Cost = Higher of (Actual Cost) and (Lower of Fair Market Value on 31 January 2018 and Sale Consideration)

Greater Fool Theory Market Psychology & Behavioural Finance qualitative The idea that an overpriced asset can still be bought profitably if someone else will pay more for it. Test: the purchase is justified by an expected resale price rather than by the asset's own cash flows or utility

Greed Market Psychology & Behavioural Finance qualitative The desire for larger gains that leads investors to take risks they would otherwise decline. Test: position size, leverage or concentration rises without any change in the analysis that justified the original exposure

Grey Market Premium Market Basics & Instruments ₹ The unofficial price above an IPO's issue price at which its shares are quoted in an informal, unregulated market before listing. Grey Market Premium = Unofficial Quoted Price - IPO Issue Price

Gross Domestic Product Economy, Macro & Market Cycles ₹ crore The total market value of all final goods and services produced within a country in a given period. GDP = Private Consumption + Investment + Government Spending + (Exports - Imports)

Gross Margin Fundamental Analysis & Valuation % Gross profit as a percentage of revenue, showing what proportion of each sale survives the direct cost of producing it. Gross Margin = (Revenue - Cost of Goods Sold) / Revenue x 100

Gross Profit Financial Statements & Accounting ₹ crore Revenue less the direct cost of the goods or services sold, before operating, financing and tax costs. Gross Profit = Revenue - Cost of Goods Sold

Gross Value Added Economy, Macro & Market Cycles ₹ crore The value of output less the value of intermediate inputs, measured before product taxes and subsidies. GDP = Gross Value Added + Product Taxes - Product Subsidies

Growth at a Reasonable Price Fundamental Analysis & Valuation qualitative An approach that seeks companies growing above average while refusing to pay a multiple that assumes the growth continues indefinitely. Test: above-market earnings growth with a PEG near or below 1 and a defensible reason for the growth to persist

Growth Option Funds, ETFs & Index Investing qualitative The plan option in which a fund retains all gains, so returns show up as a rising NAV rather than as payouts. Test: no distributions are made; the entire return is reflected in the NAV

Terms starting with G