Barclays Stockbrokers Glossary
Glossary G

G

Gearing
Gearing describes the level of company debts, expressed as a percentage of its equity capital. So a company with a gearing ratio of 60% has levels of borrowing which are 60% of its equity capital. The significance of the gearing ratio is that it shows at a glance how much a company is borrowing and allow you to measure that against your own risk criteria. For investment trusts, borrowings can boost the return on capital and income via the ability to make additional investments.

Gilts
Also known as Gilt-Edged Securities - market term for UK Government Securities. Gilts offer investors fixed annual interest and the certainty of repayment. Gilts cannot be cashed before their maturity date but are readily traded on the stock market. Gilts are dealt in nominal value form and prices are quoted in pounds per 100 nominal. Gilt prices go up and down.
 
GMP
("Guaranteed Minimum Pension") Some occupational pension schemes "contract out" of the State Earnings Related Pension scheme by providing equivalent benefits, known as GMP.
 
Good Till Cancelled Order (GTC)
An order that remains valid until executed or cancelled by the client subject to a maximum time period.
 
Gross
An amount before deduction of tax or commissions.
 
Group Investment
Means an Investment held or to be held in the name of more than one person.
 
Growth and Income Fund
A fund that seeks earnings growth as well as income. These funds invest mainly in the ordinary shares of companies with history of capital gains but that also have a record of consistent dividend payments.
 
Growth shares
An established company in a dynamic sector that produces higher than average growth in profits year after year.

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