Glossary Of Financial Terms starting with G

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List of Financial Terms (Alphabet Wise)

Gilt-edged Securities A term often used to refer to GOVERNMENT SECURITIES signifying that the securities have the highest degree of reliability. They are, however, vulnerable to INTEREST RATE RISK and INFLATION RISK.

Goodwill The value of intangible facets of a business such as its name, reputation and location, which is reflected in the excess of its acquisition price over the fair value of its tangible assets.

Gross Domestic Product (DGP) This is a comprehensive measure of the economic activity that takes place in a country during a certain period. It is the total value of final goods and services produced in an economy in a year. The computation is on the basis of value added – the contribution of a producing enterprise is the difference between the value of its finished product and the cost of materials used.

Hence, national output is the total value added by all producing enterprises. More specifically, gross domestic product is expressed as
C + I + G + (X – M)
C stands for consumption, which is the expenditure by consumers on consumption goods and services.
I is 'Gross private Domestic Investment' representing the acquisition of new capital goods (e.g., plant and machinery) and inventory additions by business enterprises, as well as construction of factories, houses, etc.
G denotes government expenditure on goods and services.
(X-M) represents the difference between exports (S) and imports (M) of goods and services.