Stock Market Glossary-G

Gap opening:
In the context of general equities, Opening price that is substantially higher or lower than the previous day`s closing price, usually because of some extraordinarily positive or negative news

Gaussian:
A system whose probabilities are well described by the normal distribution, or Bell shaped curve.

General revenue:
The sum of taxes, charges, and miscellaneous income taken in at the state and local level while neglecting overlapping revenue which may be erroneously counted twice.

Growth stock:
Common Stock of a Company that has an opportunity to Invest money and earn more than the opportunity cost of capital.

Guaranteed investment contract (GIC):
A pure Investment product in which a life Company agrees, for a single premium, to pay at a Maturity date the Principal amount of a predetermined annual crediting (interest) rate over the life of the investment.

Hedge portfolio:
The portfolio of shares whose risk is being hedged away.

High:
The highest price that was paid for a security during a certain time period. This can be expressed daily, weekly, and monthly or for a 52-week period. For example, the high for the day can be 20, but the high for the year can be 50. It helps to know the price history of a security over a period of time as an additional support for current buy or sell decision.

Head & Shoulders Pattern :
This can also be inverted. It is a reversal Pattern And it is one of the more common and reliable patterns. It is comprised of a rally which ends a fairly extensive advance. It is followed by a Reaction on less volume. This is the left shoulder. The head is comprised of a rally Up on High volume exceeding the price of the previous rally. And the head is comprised of a reaction down to the previous Bottom on light volume. The Right shoulder is comprised of a rally up which fails to exceed the height of the head. It is then followed by a reaction down. this last reaction down should Break a horizontal line drawn along the bottoms of the previous lows from the left shoulder and head. This is the Point in which the major decline begins. The major difference between a head and shoulder Top and bottom is that the bottom should have a large burst of activity On the breakout.