Financial Lexicon: G-L

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Gross Domestic Product (GDP):

  • monetary value of all services provided and finished products made within the borders of a country in a specific time period.

  • included components:

    • government expenditures

    • public and personal consumption

    • investments

    • paid constructions costs

    • exports and imports

  • measure of economic activity within a country's borders.



Home Equity Line of Credit:

  • revolving loan whereby the equity value of the borrower's home is used as collateral/security.

  • permits a homeowner to access and borrow the equity value in an owned property.

  • loan proceeds can be used for any purchasing needs, although must follow a repayment of schedule of at least monthly interest but may be more, depending on terms.

  • most applications require an appraisal and initial set-up fee to establish the line of credit, though interest rates are generally lower on such lines of credit as opposed to unsecured ones. 



Initial Public Offering:

  • first offering to purchase a corporation's stock on a stock exchange by the general public.

  • usually referred to in the media as an "IPO".




  • any financial debt or obligation of monetary value owed by a person, corporation or institution.

  • expected to be repaid over time through payment of money, goods and/or services.

  • appears on the right side of a balance sheet.


  • ease with which asset or security is quickly bought and sold without significantly disturbing its price.

  • level of flexibility in converting security or asset into cash.

  • the higher the ease/flexibility, the more liquid the asset is said to be. 


  • ownership of a security, with the right to transfer ownership, through sale or gift, to someone else.

  • gives owner the right to receive income paid by the security

  • bestows the right by the owner to share in the profits or losses associated with changing value.

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