GDP
Gross Domestic Product

General Mortgage Bond
A bond which is secured by a blanket mortgage on the issuer's property, but may be subordinate to one or more other mortgages.

General Obligation Bond (GO)
A federal tax-exempt bond backed by the "full faith, credit and taxing power" of the issuing municipality.

Give-up
(of yield) results from the sale of bonds at one yield and the purchase of an equivalent amount of bonds at a lower yield.

(of a name) the standard practice, involving NYSE bond trades only, whereby a broker upon execution notifies the seller of the buyer's identity so that delivery can be effected via the Stock Clearing Corporation.

GMC
Guaranteed Mortgage Certificate

GNMA
Stands for Government National Mortgage Association or "Ginnie Mae". This is a federal agency which backs home loan mortgages. A wholly-owned U.S. Government cooperation within the Department of Housing and Urban Development, established in 1968 as a spin-off from the Federal National Mortgage Association (FNMA). GNMA took over the assets and liabilities and operations of the Special Assistance Functions and the Management and Liquidating functions of FNMA. GNMA can raise funds by issuing securities backed by pools of mortgages. Primary functions of GNMA are the purchase and sale of certain FHA and VA mortgages pursuant to various programs for support of the housing market, and the guaranteeing of mortgage-backed securities issued against pools of FHA and VA mortgages.

GNP
Gross National Product

Good Delivery
A delivery with everything in order; certificates must be properly endorsed and any necessary legal papers attached before the transfer agent will accept delivery.

Good Faith Deposit
A cash deposit required on a competitive bid. Deposits usually range from one to five percent of the value of an issue, and are due at the time of the bid.

Good Till Canceled (GTC)
An open order to buy or sell securities which remains in effect until the order is executed or canceled.

GOV
Government (or GVT)

Government
A security issued by the U.S federal government and its agencies (all are U.S. treasury obligations).

Government Agencies
Obligations of the federal government other than direct obligations such as Treasury Notes, Bonds, or Bills. Examples of these are GNMAs, FHLMCs, etc.

Government Bonds
Bonds backed by the federal government, whether issued by the Treasury or one of the government agencies.

Graduated Payment Mortgages (GPMs)
A mortgage which calls for monthly payments that are initially relatively small and which rise by a fixed percentage each year for some specified period of time.

Green Shoe Provision
A provision in the underwriting agreement that allows the underwriter to purchase up to an additional amount ( usually 10-15%) of the offering from the company on the same terms as the original offering. It provides the underwriter with a cushion against covering any short position incurred by the syndicate.

Gross Domestic Product (GDP)
One of the main measures of U.S. economic activity. Although similar to GNP, it measures the dollar value of goods and services produced in the nation regardless of their ownership, but excludes the value of U.S.-owned companies whose goods and services are produced abroad.

Gross National Product (GNP)
The total dollar value of final goods and services produced by the economy. When the proper accounting adjustments are made, this is equivalent to adding up total income and taxes in the economy; or total final sales plus the change in inventory stock; or the total value of each industry's output. Real GNP is the figure derived by deflating each component of GNP for the increase in prices since an arbitrary base period (currently 1972) and adding up the results. The relationship between this total and the actual dollar GNP yields the implicit GNP price deflator that is commonly cited as a measure of general price change.

Gross Spread
The dollar difference between the price which the issuing company receives for its securities and the price which the public pays for those securities. The sum of the selling concession, management fee and the underwriting fee equals the gross spread.

Group Sale
As opposed to a designated order in which only certain underwriters participate in a pot order, a sale shared pro rata by every member of the account.

Growth Stock
The earnings of stock in a corporation that have increased consistently over a number of years and show every indication of considerable further expansion.

GTC
Good Till Canceled

Guaranteed Coupon
In the GNMA forward market, a trade in which the seller guarantees the buyer delivery of a specific-coupon GNMA at the agreed price, thereby avoiding the yield maintenance and par cap procedures associated with delivery of different coupons.

Guaranteed Mortgage Certificate (GMC)
A bond issued by FHLMC backed by a pool of conventional mortgages and similar to a pass-through except that FHLMC guarantees that some minimum principal amount will be paid each year. Unlike pass-throughs GMC's pay interest semi-annually and principal annually. The investor also has the option to put his remaining principal balance to FHLMC at par some time prior to maturity.

GYP'EMS
GNMA Graduated Payment Mortgage Securities