Dictionary_of_Banking_and_Finance

foreign exchange reserves

146

fortune

foreign exchange reserves

/ fɒr n ks tʃe nd$ r z% vz/ plural noun foreign money held by a government to support its own currency and pay its debts

foreign exchange transaction

/ fɒr n ks tʃe nd$ tr n z kʃən/ noun a purchase or sale of foreign currency

foreign exchange transfer / fɒr n

ks tʃe nd$ tr nsf% / noun the sending of money from one country to another

foreign investments / fɒr n n-

vestmənts/ plural noun money invested in other countries

foreign money order / fɒr nm ni/ noun a money order in a foreign currency which is payable to someone living in a foreign country

Foreign Office / fɒr n ɒf s/ noun a ministry dealing with a country’s relations with foreign countries

foreign rights / fɒr n ra tz/ plural noun a legal entitlement to sell something in a foreign country, such as the right to translate a book into a foreign language

foreign trade / fɒr n tre d/ noun a trade with other countries

forex / fɔ reks/, Forex noun same as foreign exchange

‘…the amount of reserves sold by the authorities were not sufficient to move the $200 billion Forex market permanently’ [Duns Business Month]

forfaiting / fɔ f t ŋ/ noun providing finance for exporters, where an agent (the forfaiter) accepts a bill of exchange from an overseas customer; he buys the bill at a discount, and collects the payments from the customer in due course

forfeit / fɔ f t/ noun the fact of having something taken away as a punishment

the goods were declared forfeit the court said that the goods had to be taken away from the person who was holding them verb to have something taken away as a punishment to forfeit a patent to lose a patent because payments have not been made to forfeit a deposit to lose a deposit which was left for an item because you have decided not to buy that item

forfeit clause / fɔ f t klɔ z/ noun a clause in a contract which says that

goods or a deposit will be taken away if the contract is not obeyed

forfeiture / fɔ f tʃə/ noun the act of forfeiting a property

for hire contract /fə ha ə

kɒntr kt/ noun US a freelance contract

forint / fɒr nt/ noun a unit of currency used in Hungary

form /fɔ m/ noun 1. form of words words correctly laid out for a legal document receipt in due form a correctly written receipt 2. an official printed paper with blank spaces which have to be filled in with information a pad of order forms You have to fill in form A20.Each passenger was given a customs declaration form. The reps carry pads of order forms. verb to start, create or organise something The brothers have formed a new company.

Form 1099 /fɔ m ten na nti na n/ noun US a statement from a bank or stockbroker, giving details of interest payments or dividends received, which a taxpayer sends on to the IRS

forma / fɔ mə/ noun pro forma

formal / fɔ m(ə)l/ adjective clearly and legally written to make a formal application to send a formal order Is this a formal job offer? The factory is prepared for the formal inspection by the government inspector.

formal documents / fɔ m(ə)ldɒkjυmənts/ plural noun documents

giving full details of a takeover bid

formality /fɔ m l ti/ noun something which has to be done to obey the law

formation /fɔ me ʃ(ə)n/, forming

/ fɔ m ŋ/ noun the act of organising the formation of a new company

form letter /fɔ m letə/ noun a letter which can be sent without any change to several correspondents (such as a letter chasing payment)

formula investing / fɔ mjələ n-

vest ŋ/ noun a method of investing according to a set plan (such as purchasing a certain value of shares each month, or only investing in shares of companies with a capitalisation of less than £25m)

fortune / fɔ tʃən/ noun a large amount of money He made a fortune

Fortune 500

147

fractional

from investing in oil shares. She left her fortune to her three children.

Fortune 500 / fɔ tʃən fa vh ndrəd/ noun the 500 largest compa-

nies in the USA, as listed annually in Fortune magazine

forward / fɔ wəd/ adjective in advance or to be paid at a later date adverb to date a cheque forward to put a later date than the present one on a cheque

forwardation / fɔ wəd e ʃ(ə)n/ noun a cash price which is lower than the forward price (NOTE: The opposite is

backwardation.)

forward buying / fɔ wəd ba ŋ/ noun the act of buying shares, currency or commodities at today’s price for delivery at a later date

forward contract / fɔ wədkɒntr kt/ noun a one-off agreement

to buy foreign currency or shares or commodities for delivery at a later date at a specific price

forward cover / fɔ wəd k və/ noun an arrangement to cover the risks on a forward contract

forward dealing / fɔ wəd di l ŋ/ noun the activity of buying or selling commodities forward

forward delivery / fɔ wəd d -

l v(ə)ri/ noun a delivery at some date in the future which has been agreed between the buyer and seller

forwarder / fɔ wədə/ noun a person or company that arranges shipping and customs documents for several shipments from different companies, putting them together to form one large shipment

forwarding / fɔ wəd ŋ/ noun the act of arranging shipping and customs documents

forwarding address / fɔ wəd ŋ ə-

dres/ noun the address to which a person’s mail can be sent on

forwarding agent / fɔ wəd ŋ

e d$ənt/ noun a person or company which arranges shipping and customs documents

forwarding instructions

/ fɔ wəd ŋ n str kʃənz/ plural noun instructions showing how the goods are to be shipped and delivered

forward integration / fɔ wəd ntə-

re ʃ(ə)n/ noun a process of expansion in which a company becomes its own distributor or takes over a company in the same line of business as itself Forward integration will give the company greater control over its selling. Forward integration has brought the company closer to its consumers and has made it aware of their buying habits.

Compare backward integration

forward margin / fɔ wəd mɑ d$ n/ noun the difference between the current (or spot) price and the forward price

forward market / fɔ wəd mɑ k t/ noun a market for purchasing foreign currency, oil or commodities for delivery at a later date

forward sales / fɔ wəd se lz/ plural noun the sales of shares, commodities or foreign exchange for delivery at a later date

forward trading / fɔ wəd tre d ŋ/ noun the activity of buying or selling commodities forward

foul bill of lading / faυl b l əvle d ŋ/ noun a bill of lading which says that the goods were in bad condition when received by the shipper

founder / faυndə/ noun a person who starts a company

founder’s shares / faυndəz ʃeəz/ noun special shares issued to the person who starts a company

401(k) plan / fɔ əυ w n ke pl n/ noun US a personal pension plan arranged by an employer for a member of staff, invested in bonds, mutual funds or stock (the employee contributes a proportion of salary, on which tax is deferred; the employer can also make contributions)

fourth market /fɔ θ mɑ k t/ noun US trading in securities which is carried between financial institutions, without going through the stock market

fourth quarter /fɔ θ kwɔ tə/ noun a period of three months from 1st October to the end of the year

fraction / fr kʃən/ noun a very small amount Only a fraction of the new share issue was subscribed.

fractional / fr kʃənəl/ adjective very small

fractional certificate

148

free capital

fractional certificate / fr kʃənəl sə t f kət/ noun a certificate for part of a share

fractional reserve / fr kʃənəl r -

z% v/ noun a reserve held by a bank which is a small proportion of its total deposits

fragile / fr d$a l/ adjective which can be easily broken There is an extra premium for insuring fragile goods in shipment.

fragility /frə d$ l ti/ noun the fact of being weak or likely to collapse financial fragility the fact of being in a weak position financially

franc /fr ŋk/ noun 1. a former unit of currency in France and Belgium

French francs or Belgian francs 2. a unit of currency in Switzerland and several other currencies It costs twenty-five Swiss francs.

franchise / fr ntʃa z/ noun a licence to trade using a brand name and paying a royalty for it He’s bought a printing franchise or a pizza franchise. verb to sell licences for people to trade using a brand name and paying a royalty His sandwich bar was so successful that he decided to franchise it.

‘…many new types of franchised businesses will join the ranks of the giant chains of fast-food restaurants, hotels and motels and rental car agencies’ [Franchising Opportunities]

franchisee / fr ntʃa zi / noun a person who runs a franchise

franchiser / fr ntʃa zə/ noun a person who licenses a franchise

franchising / fr ntʃa z ŋ/ noun the act of selling a licence to trade as a franchise He runs his sandwich chain as a franchising operation.

franchising operation

/ fr ntʃa z ŋ ɒpə re ʃ(ə)n/ noun an operation involving selling licences to trade as a franchise

franchisor / fr ntʃa zə/ noun another spelling of franchiser

franco / fr ŋkəυ/ adverb free

franc zone / fr ŋk zəυn/ noun a currency area consisting of the former French colonies in Africa or in the Pacific (it uses the CFA franc or the CFP franc as unit of currency)

Frankfurt / fr ŋkf% t/ the main financial centre in Germany

Frankfurter Allgemeine Zeitung noun a daily newspaper published in Frankfurt

Frankfurt Interbank Offered Rate / fr ŋkf% t ntə b ŋk ɒfəd

re t/ noun a rate used for calculating loans on the Frankfurt money markets. Abbreviation FIBOR

fraud /frɔ d/ noun an act of making money by making people believe something which is not true He got possession of the property by fraud. She was accused of frauds relating to foreign currency. to obtain money by fraud to obtain money by saying or doing something to cheat someone

fraud squad / frɔ d skwɒd/ noun the special police department which investigates frauds

fraudulent / frɔ djυlənt/ adjective not honest, or aiming to cheat people a fraudulent transaction

fraudulently / frɔ djυləntli/ adverb not honestly goods imported fraudulently

fraudulent misrepresentation

/ frɔ djυlənt m s repr zen te ʃ(ə)n/ noun the act of making a false statement with the intention of tricking a customer

FRB abbreviation 1. Federal Reserve Bank 2. Federal Reserve Board

Freddie Mac / fred m k/ noun US same as Federal Home Loan Mortgage Corporation (informal)

free /fri / adjective, adverb 1. not costing any money I have been given a free ticket to the exhibition. The price includes free delivery. All goods in the store are delivered free. A catalogue will be sent free on request. free of charge with no payment to be made 2. with no restrictions free of tax with no tax having to be paid Interest is paid free of tax. free of duty with no duty to be paid to import wine free of duty verb to make something available or easy The government’s decision has freed millions of pounds for investment.

‘American business as a whole is increasingly free from heavy dependence on manufacturing’ [Sunday Times]

free capital /fri k p t(ə)l/ noun an amount of a company’s capital in shares which are available for trading on a Stock Exchange

free collective bargaining

149

free trader

free collective bargaining / fri kə lekt v bɑ n ŋ/ noun negotiations between management and trade unions about wage increases and working conditions

free competition / fri kɒmpə-

t ʃ(ə)n/ noun the fact of being free to compete without government interference

free currency / fri k rənsi/ noun a currency which is allowed by the government to be bought and sold without restriction

free enterprise / fri entəpra z/ noun a system of business free from government interference

freefall / fri fɔ l/ noun a sudden collapse of prices On the news of the devaluation the stock market went into freefall.

free gift /fri ft/ noun a present given by a shop to a customer who buys a specific amount of goods There is a free gift worth £25 to any customer buying a washing machine.

freeholder / fri həυldə/ noun a person who owns a freehold property

freehold property / fri həυldprɒpəti/ noun property which the

owner holds for ever and on which no rent is paid

free issue /fri ʃu / noun same as scrip issue

free market /fri mɑ k t/ noun a market in which there is no government control of supply and demand, and the rights of individuals and organisations to physical and intellectual property are upheld

free market economy /fri mɑ k t

kɒnəmi/ noun a system where the government does not interfere in business activity in any way

free on board / fri ɒn bɔ d/ adjective including in the price all the seller’s costs until the goods are on the ship for transportation. Abbreviation f.o.b.

free online sessions /fri ɒnla nseʃ(ə)nz/ plural noun the number of times a customer can access his online bank account without paying a charge

free period /fri p əriəd/ noun the period of grace allowed to credit card holders before payment for credit card purchases is demanded

freephone / fri fəυn/, freefone noun a system where you can telephone to reply to an advertisement, to place an order or to ask for information and the seller pays for the call

free port / fri pɔ t/ noun a port where there are no customs duties to be paid

freepost / fri pəυst/ noun a system where someone can write to an advertiser to place an order or to ask for information to be sent, without paying for a stamp. The company paying for the postage on receipt of the envelope.

free reserves /fri r z% vz/ plural noun the part of a bank’s reserves which are above the statutory level and so can be used for various purposes as the bank wishes

free sample /fri sɑ mpəl/ noun a sample given free to advertise a product

free-standing /fri st nd ŋ/ adjective standing separately, not attached to a wall

free-standing additional vol-

untary contribution /fri st nd ŋ

ə d ʃ(ə)nəl vɒlənt(ə)ri kɒntr -

bju ʃ(ə)n/ noun a payment made by an individual into an independent pension fund to supplement an occupational pension scheme (the anticipated benefits from the two schemes together must be less than the maximum permitted under the rules laid down by the Inland Revenue). Abbreviation FSAVC

free-standing additional volun-

tary contributions plan /frist nd ŋ ə d ʃ(ə)nəl vɒlənt(ə)rikɒntr bju ʃ(ə)ns/ noun a separate

pension plan taken out by an individual in addition to a company pension scheme

free trade /fri tre d/ noun a system where goods can go from one country to another without any restrictions

‘…can free trade be reconciled with a strong dollar resulting from floating exchange rates?’ [Duns Business Month]

free trade area /fri tre d eəriə/ noun a group of countries practising free trade

free trader /fri tre də/ noun a person who is in favour of free trade

‘…free traders hold that the strong dollar is the primary cause of the nation’s trade problems’ [Duns Business Month]

free trade zone

150

frozen credits

free trade zone /fri tre d zəυn/ noun an area where there are no customs duties

free trial /fri tra əl/ noun an opportunity to test a machine or product with no payment involved

freeze /fri z/ noun a freeze on wages and prices period when wages and prices are not allowed to be increased verb to keep something such as money or costs at their present level and not allow them to rise to freeze wages and prices to freeze credits to freeze company dividends We have frozen expenditure at last year’s level.

(NOTE: freezing – froze – frozen)

freeze out / fri z aυt/ verb to freeze out the competition to trade successfully and cheaply and so prevent competitors from operating

freight /fre t/ noun the cost of transporting goods by air, sea or land At an auction, the buyer pays the freight.

freightage / fre t d$/ noun the cost of transporting goods

freight charges / fre t tʃɑ d$ z/ plural noun money charged for transporting goods Freight charges have gone up sharply this year.

freight costs / fre t kɒsts/ plural noun money paid to transport goods

freight forward /fre t fɔ wəd/ noun a deal where the customer pays for transporting the goods

freight forwarder / fre t fɔ wədə/ noun a person or company that arranges shipping and customs documents for several shipments from different companies, putting them together to form one large shipment

‘…the airline will allow freight forwarder customers to track and trace consignments on the airline’s website’ [Lloyd’s List]

freight rates / fre t re ts/ plural noun charges for transporting goods

frequent flier / fri kwənt fla ə/ noun a person who flies regularly, usually on business

friendly society / frendli sə sa əti/ noun a group of people who pay regular subscriptions which are used to help members of the group when they are ill or in financial difficulties

fringe benefit /fr nd$ ben f t/ noun an extra item given by a company to

workers in addition to a salary, e.g. company cars or private health insurance The fringe benefits make up for the poor pay. Use of the company recreation facilities is one of the fringe benefits of the job.

FRN abbreviation floating rate note

front /fr nt/ noun a business or person used to hide an illegal trade

His restaurant is a front for a drugs organisation.

front-end /fr nt end/ adjective referring to the start of an investment or insurance

front-end fee /fr nt end fi / noun an initial loading of the management charges into the first premium paid for an insurance

front-end loaded / fr nt endlaυd d/ adjective referring to an insurance or investment scheme where most of the management charges are incurred in the first year of the investment or insurance, and are not spread out over the whole period. Compare back-end

loaded

front man / fr nt m n/ noun a person who seems honest but is hiding an illegal trade

front office /fr nt ɒf s/ noun the front-line staff and support staff in a financial institution

front-running /fr nt r n ŋ/ noun US the act of buying shares or options because you have heard of a large order to purchase which is coming They were accused of persistent front-running.

frozen / frəυz(ə)n/ adjective not allowed to be changed or used Wages have been frozen at last year’s rates. his assets have been frozen by the court the court does not allow him to sell his assets. freeze

frozen account / frəυz(ə)n ə kaυnt/ noun a bank account where the money cannot be moved or used because of a court order

frozen assets / frəυz(ə)n sets/ plural noun a company’s assets which by law cannot be sold because someone has a claim against them

frozen credits / frəυz(ə)n kred tz/ plural noun credits in an account which cannot be moved

FSA

151

full-scale

FSA abbreviation Financial Services Authority

FSAVC abbreviation free-standing additional voluntary contribution

FT abbreviation Financial Times

FT Actuaries Share Indices / ef ti ktjυəriz ʃeə nd siz/ plural

noun several indices based on prices on the London Stock Exchange, which are calculated by and published in the Financial Times in conjunction with the Institute of Actuaries and the Faculty of Actuaries. Financial Times

FTSE 100 / fυtsi w n h ndrəd/ noun an index based on the prices of one hundred leading companies (this is the main London index)

‘…the benchmark FTSE 100 index ended the session up 94.3 points’ [Times]

FTSE 100 index-tracking unit trust / fυtsi w n h ndrəd ndekstr k ŋ ju n t tr st/ noun a unit trust

that follows the FTSE 100

FTSE 350 Index / fυtsi θri f ftindeks/ noun an index based on the

market price of 350 companies listed on the London Stock Exchange (it includes the companies on the FTSE 100 Index and FTSE 250 Index)

FTSE All-Share Index / fυtsi ɔ l ʃeə ndeks/ noun an index based on

the market price of about 840 companies listed on the London Stock Exchange (it includes the companies on the FTSE 100 Index, the 250 Index, plus companies in other indices) (NOTE: Also

simply called the All-Share Index.)

FTSE All-Share tracker / fυtsi ɔ l ʃeə tr kə/ noun a fund which tracks the FTSE All-Share index

FTSE All-Small Index / fυtsi ɔ lsmɔ l ndeks/ noun an index covering

the FTSE SmallCap companies, plus about 750 fledgling companies which are too small to be included in the All-Share Index

FTSE Eurotop 300 Index / fυtsijυərəυtɒp θri h ndrəd ndeks/

noun an index of 300 leading European shares, quoted in euros

FTSE Mid 250 Share Index / fυtsi m d tu f fti ʃeə ndeks/ noun an in-

dex based on the market prices of 250 companies capitalised at between £300m and £2.5bn (this is about 16% of the total stock market capitalisation)

FTSE Small Cap Index / fυtsi smɔ l k p ndeks/ noun an index

which covers about 500 smaller companies which are too small to be included in the two main indices

fulfil /fυl f l/ verb to complete something in a satisfactory way The clause regarding payments has not been fulfilled. (NOTE: The US spelling is fulfill.)

to fulfil an order to supply the items which have been ordered We are so understaffed that we cannot fulfil any more orders before Christmas.

fulfilment /fυl f lmənt/ noun the act of carrying something out in a satisfactory way (NOTE: The US spelling is ful-

fillment.)

full /fυl/ adjective 1. complete, including everything we are working at full capacity we are doing as much work as possible in full discharge of a debt paying a debt completely 2. in full completely a full refund or a refund paid in full Give your full name and address or your name and address in full. He accepted all our conditions in full.

‘…a tax-free lump sum can be taken partly in lieu of a full pension’ [Investors Chronicle]

full costs /fυl kɒsts/ plural noun all the costs of manufacturing a product, including both fixed and variable costs

full cover /fυl k və/ noun insurance cover against all risks

full employment /fυl m plɔ mənt/ noun a situation where all the people who can work have jobs

full listing /fυl l st ŋ/ noun the listing of a company on the London Stock Exchange (as opposed to trading on the USM market)

full price / fυl pra s/ noun a price with no discount She bought a full-price ticket.

full rate /fυl re t/ noun the full charge, with no reductions

full refund /fυl ri f nd/ noun a refund of all the money paid He got a full refund when he complained about the service.

full repairing lease /fυl r peər ŋ li s/ noun a lease where the tenant has to pay for all repairs to the property

full-scale / fυl ske l/ adjective complete or very thorough The MD or-

full-service

152

funds

dered a full-scale review of credit terms.The HR department will start a full-scale review of the present pay structure.

‘…the administration launched a full-scale investigation into maintenance procedures’ [Fortune]

full-service /fυl s% v s/ adjective that provides a full service

full-service banking /fυl s% v sb ŋk ŋ/ noun banking that offers a whole range of services (including mortgages, loans, pensions, etc.)

full-service broker /fυl s% v sbrəυkə/ noun a broker who manages

portfolios for clients, and gives advice on shares and financial questions in general (as opposed to an execution-only broker or discount broker)

full-time / fυl ta m/ adjective, adverb working all the normal working time, i.e. about eight hours a day, five days a week She’s in full-time work or She works full-time or She’s in full-time employment. He is one of our full-time staff.

full-time employment / fυl ta m

m plɔ mənt/ noun work for all of a working day to be in full-time employment

fully / fυli/ adverb completely the offer was fully subscribed all the shares on offer were applied for, so the underwriters to the issue were not forced to buy any the shares are fully valued the market price of the shares is high enough, possibly too high

‘…issued and fully paid capital is $100 million’ [Hongkong Standard]

fully diluted earnings per share

/ fυli da lu t d % n ŋz pə ʃeə/, fully diluted EPS / fυli da lu t d i pi es/

plural noun earnings per share calculated over the whole number of shares assuming that convertible shares have been converted to ordinary shares

fully diluted shares / fυli da -

lu t d ʃeəz/ plural noun total number of shares which includes convertible shares, stock options, etc.

fully-paid shares / fυli pe d ʃeəz/ plural noun shares for which the full face value has been paid

fully paid-up capital / fυli pe d pk p t(ə)l/ noun all money paid for the issued capital shares

function key / f ŋkʃən ki / noun a key switch that has been assigned a particular task or sequence of instructions

fund /f nd/ noun 1. money set aside for a special purpose 2. money invested in an investment trust as part of a unit trust, or given to a financial adviser to invest on behalf of a client. funds verb to provide money for a purpose

The company does not have enough resources to fund its expansion programme. to fund a company to provide money for a company to operate

‘…the S&L funded all borrowers’ development costs, including accrued interest’ [Barrons]

fundamental / f ndə ment(ə)l/ adjective basic or most important

fundamental issues

/ f ndəment(ə)l ʃu z/ plural noun matters relating to a company’s profits or assets

fundamental research

/ f ndəment(ə)l r s% tʃ/, fundamental analysis / f ndəment(ə)l ə-

n ləs s/ noun an examination of the basic factors which affect a market

fundamentals / f ndə ment(ə)lz/ plural noun the basic realities of a stock market or of a company (such as its assets, profitability and dividends)

funded / f nd d/ adjective backed by long-term loans long-term funded capital

funded debt / f nd d det/ noun the part of the British National Debt which pays interest, but with no date for repayment of the principal

funding / f nd ŋ/ noun 1. money for spending The bank is providing the funding for the new product launch. 2. the act of changing a short-term debt into a long-term loan The capital expenditure programme requires long-term funding.

fund management / f ndm n d$mənt/ noun the business of

dealing with the investment of sums of money on behalf of clients

fund manager / f nd m n d$ə/ noun 1. a person who invests money on behalf of clients 2. a person who manages the investments made by a fund in such a way as to fulfill the fund’s stated objectives

funds /f ndz/ plural noun 1. money which is available for spending The

fungibility

153

futures exchange

company has no funds to pay for the research programme. insufficient funds the company called for extra funds the company asked for more money to convert funds to another purpose to use money for a wrong purpose to convert funds to your own use to use someone else’s money for yourself 2. government stocks and securities

‘…small innovative companies have been hampered for lack of funds’ [Sunday Times]

‘…the company was set up with funds totalling NorKr 145m’ [Lloyd’s List]

fungibility / f nd$ə b l ti/ noun being exchangeable for something similar

fungible / f nd$əb(ə)l/ adjective referring to a security which can be exchanged for another of the same type

funny money / f ni m ni/ noun strange types of shares or bonds offered by companies or their brokers, which are not the usual forms of loan stock

future / fju tʃə/ adjective referring to time to come or to something which has

not yet happened noun the time which has not yet happened Try to be more careful in future. In future all reports must be sent to Australia by air.

future delivery / fju tʃə d l v(ə)ri/ noun delivery at a later date

futures / fju tʃəz/ plural noun shares, currency or commodities that are bought or sold for now for delivery at a later date Gold rose 5% on the commodity futures market yesterday.

‘…cocoa futures plummeted in November to their lowest levels in seven years’ [Business in Africa]

futures contract / fju tʃəzkɒntr kt/ noun a contract for the pur-

chase of commodities for delivery at a date in the future

COMMENT: A futures contract is a contract to purchase; if investors are bullish, they will buy a contract, but if they feel the market will go down, they will sell one.

futures exchange / fju tʃəz ks-

tʃe nd$/ noun a commodity market which only deals in futures

G

G10 abbreviation Group of Ten

G5 abbreviation Group of Five

G7 abbreviation Group of Seven

G8 abbreviation Group of Eight

GAAP abbreviation Generally Accepted Accounting Principles

GAB abbreviation General Arrangements to Borrow

gain / e n/ noun 1. an increase, or the act of becoming larger gain in profitability the act of becoming more profitable 2. an increase in profit, price or value Oil shares showed gains on the Stock Exchange. Property shares put on gains of 10%-15%. verb 1. to get or to obtain He gained some useful experience working in a bank. to gain control of a business to buy more than 50% of the shares so that you can direct the business 2. to rise in value The dollar gained six points on the foreign exchange markets.

galloping inflation / ləp ŋ n-

fle ʃ(ə)n/ noun very rapid inflation which is almost impossible to reduce

gamma shares / mə ʃeəz/,

gamma securities / mə s -kjυərətiz/, gamma stocks / mə

stɒks/ plural noun shares of companies which are not frequently traded on the London Stock Exchange, but which are listed

gap / p/ noun an empty space gap in the market an opportunity to make a product or provide a service which is needed but which no one has sold before

to look for or to find a gap in the market This laptop has filled a real gap in the market.

‘…these savings are still not great enough to overcome the price gap between American products and those of other nations’ [Duns Business Month]

gap financing / p fa n ns ŋ/ noun arranging extra loans (such as a

bridging loan) to cover a purchase not covered by an existing loan

garage / r d$, rɑ $/ noun a part of the trading floor on the New York Stock Exchange verb to put assets into another company so as to reduce tax liability

garnish / ɑ n ʃ/ verb US to withhold salary or property because a person has debts or taxes which are unpaid

garnishee / ɑ n ʃi / noun a person who owes money to a creditor and is ordered by a court to pay that money to a creditor of the creditor, and not to the creditor himself

garnishee order / ɑ n ʃi ɔ də/ noun a court order, making a garnishee pay money not to the debtor, but to a third party

garnishment / ɑ n ʃmənt/ noun same as garnishee order

GATT abbreviation General Agreement on Tariffs and Trade

gazump / ə z mp/ verb to stop someone buying a property for which he or she has already agreed a price with the seller by offering a higher price

gazumping / ə z mp ŋ/ noun the practice of offering a higher price for a house than another buyer has already agreed with the seller

GDP abbreviation gross domestic product

gear / ə/ verb to link something to something else salary geared to the cost of living salary which rises as the cost of living increases

gearing / ər ŋ/ noun the act of borrowing money at fixed interest which is then used to produce more money than the interest paid

COMMENT: High gearing (when a company is said to be ‘highly geared’) indicates that the level of borrowings is high

GEB

when compared to its ordinary share capital. A lowly-geared company has borrowings which are relatively low. High gearing has the effect of increasing a company’s profitability when the company’s trading is expanding. If the trading pattern slows down, then the high interest charges associated with gearing will increase the rate of slowdown.

155 generation-skipping transfer tax

general ledger / d$en(ə)rəl led$ə/ noun a book which records a company’s income and expenditure in general

general lien / d$en(ə)rəl li ən/ noun

1. a right to hold goods or property until a debt has been paid 2. a lien against the personal possessions of a borrower (but not against his or her house or land).

banker’s lien

GEB abbreviation Guaranteed Equity Bond

geisha bond / e ʃə bɒnd/ noun a bond placed by a non-Japanese borrower in Japan, in a currency other than the yen

general / d$en(ə)rəl/ adjective 1. ordinary or not special 2. dealing with everything or with everybody

General Agreement on Tariffs and Trade / d$en(ə)rəl ə ri mənt ɒn θ r fs ən tre d/ noun an interna-

tional agreement to try to reduce restrictions in trade between countries (replaced in 1998 by the World Trade Organization). Abbreviation GATT.

World Trade Organization

General Arrangements to Borrow / d$en(ə)rəl ə re nd$mənts tə bɒrəυ/ plural noun an agreement be-

tween members of the G10 group of countries, by which members make funds available to the IMF to cover loans which it makes. Abbreviation

GAB

general audit / d$en(ə)rəl ɔ d t/ noun a process of examining all the books and accounts of a company

general average / d$en(ə)rəlv(ə)r d$/ noun a process by which the cost of lost goods is shared by all parties to an insurance (in cases where some goods have been lost in an attempt to save the rest of the cargo)

general expenses / d$en(ə)rəl k-

spens z/ plural noun all kinds of minor expenses, the money spent on the day-to-day costs of running a business

general fund / d$en(ə)rəl f nd/ noun a unit trust with investments in a variety of stocks

general insurance / d$en(ə)rəl n-

ʃυərəns/ noun insurance covering all kinds of risk, e.g. theft, loss or damage, but excluding life insurance

Generally Accepted Accounting Principles / d$en(ə)rəli ək sept d ə-kaυnt ŋ pr ns p(ə)lz/ plural noun US

rules applied to accounting practice in the US. Abbreviation GAAP

general manager / d$en(ə)rəlm n d$ə/ noun a manager in charge of the administration of a company

general meeting / d$en(ə)rəlmi t ŋ/ noun meeting of all the shareholders of a company or of all the members of a society

general obligation bond

/ d$en(ə)rəl ɒbl e ʃ(ə)n bɒnd/ noun US a municipal or state bond issued to finance public undertakings such as roads, but which is repaid out of general funds. Abbreviation GO bond

general office / d$en(ə)rəl ɒf s/ noun the main administrative office of a company

general partner / d$en(ə)rəlpɑ tnə/ noun a partner in a partnership whose responsibility for its debts is not limited

general partnership / d$en(ə)rəlpɑ tnəʃ p/ noun a partnership where the liability of each partner is not limited

general PEP / d$en(ə)rəl pep/ noun a PEP which has shares of several companies in it, as opposed to a single company PEP

general undertaking / d$en(ə)rəlndə te k ŋ/ noun an undertaking signed by the directors of a company applying for a Stock Exchange listing, promising to work within the regulations of the Stock Exchange

generation-skipping transfer tax

/ d$enəre ʃ(ə)n sk p ŋ tr nsf% t ks/ noun US a tax on property left to grandchildren or great-grand- children with the intention of avoiding paying estate duties. Abbreviation

GSTT