Author: Helen Barklam

IntroductionDiversification is an investment strategy that involves spreading out investments across different asset classes, industries, and geographic regions in order to reduce risk and maximize returns. It is a key component of any successful investment portfolio, as it helps to reduce the overall risk of the portfolio while still allowing for potential growth. Diversification is important because it helps to reduce the risk of losses due to market volatility, and it can also help to increase returns by allowing investors to take advantage of different market opportunities. By diversifying, investors can also reduce the impact of any single investment on…

IntroductionGoodwill is an intangible asset that is recorded on a company’s balance sheet when one company acquires another. It is the amount of money that the acquiring company pays for the target company in excess of the fair market value of the target company’s net assets. Goodwill is an important concept in accounting because it can represent the value of a company’s brand, customer base, and other intangible assets. It is also used to measure the success of a company’s acquisition strategy. Goodwill can be either positive or negative, depending on the circumstances of the acquisition. Positive goodwill is created…

IntroductionGood ‘Til Canceled (GTC) is an order type used in trading that allows an investor to place a buy or sell order that remains active until it is either filled or canceled. GTC orders are typically used when an investor wants to buy or sell a security at a specific price and is willing to wait until the order is filled. GTC orders are also used to ensure that an investor does not miss out on an opportunity to buy or sell a security at a desired price. GTC orders are often used in conjunction with limit orders, which allow…

IntroductionGoldilocks Economy is a term used to describe an economy that is not too hot and not too cold, but just right. It is a situation where the economy is growing at a moderate and sustainable rate, with low inflation and low unemployment. This type of economy is seen as ideal, as it allows for economic growth without the risk of inflation or recession. In finance, a Goldilocks Economy is characterized by low interest rates, moderate economic growth, low inflation, and low unemployment. This type of economy is seen as beneficial for businesses, as it allows them to invest in…

IntroductionA Global Depository Receipt (GDR) is a financial instrument that represents ownership of a foreign company’s shares. GDRs are issued by a depository bank and traded on international stock exchanges. GDRs provide investors with an opportunity to invest in foreign companies without having to purchase the underlying shares directly. GDRs are also used by companies to raise capital in international markets. GDRs are an important tool for companies to access global capital markets and to increase their visibility and liquidity. They also provide investors with a convenient way to diversify their portfolios and access foreign markets.What is a Global Depository…

IntroductionGift tax is a tax imposed on the transfer of money or property from one person to another without receiving anything of equal value in return. It is a type of estate tax, and is imposed by the federal government and some states. Gift tax can have a significant impact on gifting, as it can reduce the amount of money or property that can be given away without incurring a tax liability. It is important to understand the rules and regulations surrounding gift tax in order to ensure that gifts are given in a way that is compliant with the…

IntroductionGeometric mean return is a measure of the average rate of return of an investment over a period of time. It is calculated by taking the product of all the returns over the period and then taking the nth root of the product, where n is the number of returns. The geometric mean return is a more accurate measure of the average return of an investment than the arithmetic mean return, as it takes into account the compounding effect of returns over time. It is also known as the geometric average return or the geometric rate of return.What is Geometric…

IntroductionGeneration-Skipping Transfer Tax (GSTT) is a federal tax imposed on transfers of property from one generation to another that skip a generation. This tax is intended to prevent wealthy individuals from avoiding estate taxes by transferring assets to their grandchildren or other generations. GSTT applies to transfers of property, including money, stocks, bonds, real estate, and other assets. The tax rate is currently 40%, and it applies to transfers of more than $11.58 million in 2020. GSTT can have a significant impact on inheritance, as it can reduce the amount of money or assets that can be passed down to…

IntroductionA General Obligation Bond (GO) is a type of municipal bond that is backed by the full faith and credit of the issuer. This means that the issuer is obligated to use its taxing power to repay the bondholders. GO bonds are typically used to finance public projects such as schools, roads, and other infrastructure. The issuer of the bond is responsible for repaying the principal and interest on the bond over a predetermined period of time. The issuer typically pays interest on the bond semi-annually and repays the principal at maturity. GO bonds are typically issued with a fixed…