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Gearing
In the context of derivatives gearing represents the ability to use a small initial investment to gain exposure to a much larger amount of underlying stock. Invariably, the higher the gearing the higher the risk.
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Gilt Edged Market Makers (GEMMs)
A firm that is a market maker in gilts, who quotes prices at which they will buy and sell. Also known as a Primary Dealer.
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Gilt Edged Securities
Bonds issued and guaranteed by the UK government, now administered by the Debt Management Office (DMO).
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Gold bullion price fix
The gold fix takes place twice daily in the offices of N M Rothschild in London. The five members of the fix meet at 10.30 and 15.00 London time. The fix is an open method used to determine the price of gold. The price is derived from the supply and demand in the market at the time.
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Graphical User Interface (GUI)
The term GUI is used to refer to the Windows™ based system supplied by CRESTCo which allows interactive connection to CREST or CGO via one of the approved networks.
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Gross Domestic Product (GDP)
Measure of a country’s output which calculates the value of goods produced within that country.
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Gross Interest
The amount of interest applicable to a particular loan or deposit before tax is deducted. Interest rates may be quoted as gross (as they are on government securities) or net (as in most building society deposits or bank deposits). The gross interest less the tax deducted at the basic rate of income tax gives the net interest. Any tax suffered is usually, but not always, available as a credit against tax liabilities.
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Gross Redemption Yield (GRY)
The annual return on owning a bond, allowing both for interest and profit on redemption.
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Gross Yield
A yield which has been calculated assuming no taxes are paid on interest or capital gains. (See Net yield).
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Grossed-up
The calculation of an implied before-tax yield, derived from a yield which has been based on receipts after tax.