Financial Lexicon: G-L

A-F | M-S | T-Z

G

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.

H

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.

I

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".

L

Liability:

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.

Liquidity:

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.

Long:

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.