G, H, I Flashcards
(65 cards)
Good Delivery Form
When a security is sold it must be delivered
to the broker properly endorsed, not
mutilated and with (if any) coupons
attached. To avoid these difficulties and as a
general practice most securities are held in
street form with the broker.
Good Faith Deposit
A deposit of money by the buyer or seller of
a futures product which acts as a financial
guarantee as to the fulfilment of the
contractual obligations of the futures
contract. Also called a performance bond or
margin.
Good Through Order
An order to buy or sell that is good for a
specifi ed number of days and then is
automatically cancelled if it has not been
fi lled
Good Till Cancelled Order
An order that is valid from the date entered
until the close of business on the date
specified in the order. If the order has not
been filled by the close of the market on
that date, it is cancelled. This type of order
can be cancelled or changed at any time.
Goodwill
Generally understood to represent the value
of a well-respected business – its name,
customer relations, employee relations,
among others. Considered an intangible
asset on the statement of financial
position.
Government Securities
Distributors
Typically an investment dealer or bank that
is authorized to bid at Government of
Canada debt auctions
Greensheet
Highlights for the fi rm’s sales representatives
the salient features of a new issue, both pro
and con in order to successfully solicit
interest to the general public. Dealers
prepare this information circular for
in-house use only
Gross Domestic Product (GDP)
The value of all goods and services
produced in a country in a year.
Gross Profi t Margin
A profitability ratio that shows the
company’s rate of profit after allowing for
cost of sales.
Growth Stock
Common stock of a company with excellent
prospects for above-average growth; a
company which over a period of time seems
destined for above-average expansion
Guaranteed Amount
The minimum amount payable under
death benefi ts or maturity guarantees
provided for under the terms of the
segregate fund contract
Guaranteed Bonds
Bonds issued by a crown corporation but
guaranteed by the applicable government as
to interest and principal payments.
Guaranteed Income Supplement
GIS
A pension payable to OAS recipients with
no other or limited income
Guaranteed Investment Certificate
GIC
A deposit instrument most commonly
available from trust companies, requiring a
minimum investment at a predetermined
rate of interest for a stated term. Generally
nonredeemable prior to maturity but there
can be exceptions.
Guaranteed Minimum Withdrawal Benefit Plans (GMWB)
A GMWB plan is similar to a variable
annuity. With a GMWB, the client
purchases the plan, and the GMWB option
gives the planholder the right to withdraw a
certain fixed percentage (7% is typical) of the
initial deposit every year until the entire
principal is returned, no matter how the
fund performs.
Halt in Trading
A temporary halt in the trading of a security
to allow signifi cant news to be reported and
widely disseminated. Usually the result of a
pending merger or a substantial change in
dividends or earnings
Hedge Funds
Lightly regulated pools of capital in which
the hedge fund manager invests a signifi cant
amount of his or her own capital into the
fund and whose offering memorandum
allows for the fund to execute aggressive
strategies that are unavailable to mutual
funds such as short selling.
Hedging
A protective manoeuvre; a transaction
intended to reduce the risk of loss from
price fl uctuations
High Water Mark
Used in the context of how a hedge fund manager is compensated. The high water mark sets the bar above which the fund manager is paid a portion of the profi ts earned for the fund.
Holding Period Return
A transactional rate of return measure that
takes into account all cash fl ows and
increases or decreases in a security’s value
for any time frame. Time frames can be
greater or less than a year
Hypothecate
To pledge securities as collateral for a loan.
Referred to as collateral assignment or
hypotec in Québec for segregated funds.
ICE Futures Canada (formerly the
Winnipeg Commodity Exchange)
An exchange that trades agricultural futures
and options exclusively
Income Splitting
A tax planning strategy whereby the
higher-earning spouse transfers income to
the lower-earning spouse to reduce taxable
income.
Income Tax Act (ITA)
The legislation dictating the process and
collection of federal tax in Canada,
administered by Canada Revenue Agency.
