Trading Glossary

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Gamma

The ratio of the change in a call option's delta to the change in price of underlying stock.

General obligation bond

A debt instrument of a municipality which is secured by the issuer's unlimited taxing power.

Geographic risk

Risk that arises when an insurer has policies concentrated within certain geographic areas, such as the risk of damage from a hurricane or an earthquake.

Give up

An order executed by one brokerage house, but cleared by another house at the request of the customer.

Gross profit margin

The ratio of gross profit to net sales.

Group rotation manager

A top-down manager who infers the phases of the business cycle and allocates assets accordingly.

Growth manager

A money manager who seeks to buy stocks that are typically selling at relatively high P/E ratios due to high earnings growth, with the expectation of continued high (or higher) earnings growth.

Growth phase

A phase of development in which a company experiences rapid earnings growth as it produces new products and expands market share. Related: Three-phase DDM

GTC (Good till canceled)

An order to buy or sell at a fixed price. It holds until executed or canceled.

Guaranteed investment contract (GIC)

A pure investment product in which a life company agrees, for a single premium, to pay the principal amount and a predetermined annual crediting rate over the life of the investment, all of which is paid at the maturity date.