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Gross Debt Service Ratio (GDS) What it is The Gross Debt Service (GDS) ratio—also called the housing expense ratio or front-end ratio—measures the share of a borrower’s income that goes toward housing costs. Lenders use it to judge whether a borrower can afford a mortgage and to help determine the loan size. Key point: lenders…

Grinder (investing) Definition A grinder is an investor who seeks steady returns by making many small trades that each yield modest profits. Rather than pursuing large, high‑risk investments, grinders rely on volume and consistency to build overall returns. How grinders operate Focus on small, repeatable opportunities rather than big, single bets. Execute a high number…

Grid Trading What is grid trading? Grid trading is a systematic strategy that places buy and sell orders at regular price intervals above and below a chosen base price, creating a “grid” of pending orders. It’s commonly used in forex but can apply to any liquid market. The method aims to capture profit from normal…

Grey Market A grey market is an unofficial marketplace where goods or securities are traded outside authorized or official channels. It exists in two main forms: pre-official trading of securities and unauthorized importation or resale of consumer goods. Grey markets are typically legal but carry added risks for buyers, sellers, and brands. Key takeaways For…

Grexit: What It Means, How It Worked, and Why It Mattered Key takeaways “Grexit” means a Greek exit from the eurozone and a return to the drachma. The idea gained prominence in 2012 as a proposed solution to Greece’s sovereign-debt crisis. Rather than leaving the euro, Greece received multiple bailout packages and implemented deep austerity…

Gresham’s Law: “Bad Money Drives Out Good” What is Gresham’s Law? Gresham’s Law summarizes a pattern in monetary circulation: when two forms of money are accepted at the same face value but differ in intrinsic or perceived value, the cheaper or overvalued form (“bad money”) tends to circulate while the more valuable or under‑valued form…

Understanding Greenwashing Greenwashing is when a company presents a misleading image of environmental responsibility to attract consumers or investors who prefer sustainable products. As demand for eco-friendly goods grows, so does the incentive to market products as “green” even when environmental benefits are exaggerated, ambiguous, or nonexistent. Key takeaways * Greenwashing misleads consumers by overstating…

Greenspan Put Key takeaways * The “Greenspan put” refers to market expectations that the Federal Reserve under Alan Greenspan would step in to limit large stock-market declines, akin to the protection a put option provides. * It’s not a formal policy or trading strategy but a market belief that Fed intervention (typically rate cuts) would…

Greenshoe Option: Definition and Overview A greenshoe option (also called an over‑allotment option) is a provision in an IPO underwriting agreement that allows underwriters to sell more shares than the issuer originally offered if demand is strong. It is primarily used to stabilize the stock price and provide extra liquidity immediately after listing. Key features:…

Greensheet: What It Means and How It Works Key takeaways * A greensheet is an internal underwriter document that summarizes the main features of a new issue or IPO for brokers and institutional sales desks. * It highlights advantages, risks, and initial pricing to help salespeople identify large-volume buyers. * It is not a substitute…

Greenmail: Definition, How It Works, Legal Response, and an Example What is greenmail? Greenmail is a tactic in mergers and acquisitions where an investor (often called a corporate raider or greenmailer) acquires a substantial block of a company’s shares and threatens a hostile takeover. To avoid the takeover, the target company repurchases those shares at…

Greenback: Definition, Origin, and History What is a greenback? “Greenback” is a historical slang term for U.S. paper dollars. The name comes from the green ink used on the backs of early U.S. paper notes. Today the term is still used informally—especially in foreign-exchange and financial contexts—to refer to the U.S. dollar. Origin and early…

What Is Green Tech? Green technology (green tech) refers to technologies, processes, and products designed to reduce environmental harm, conserve natural resources, and promote sustainability. It spans clean energy generation, more efficient production and supply chains, pollution reduction, resource recovery, and innovations across agriculture, transportation, materials, and water management. Key takeaways * Green tech uses…

Green Monday What is Green Monday? Green Monday is a major retail shopping day that falls on the second Monday in December. It marks a surge in last-minute holiday purchases and online deals as shoppers try to hit shipping deadlines and secure gifts before Christmas. Origin The term was popularized in 2007 by eBay after…

Green marketing is the promotion of products, services, or corporate practices on the basis that they are environmentally friendly or more sustainable than alternatives. As consumer concern about the environment grows, green marketing has become a core part of many companies’ branding and public-relations strategies. How green marketing works Companies highlight environmental benefits tied to…

Green Investing: A concise guide Key takeaways * Green investing directs capital to companies, projects, and funds that aim to reduce environmental harm or conserve natural resources. * Common vehicles include green equities, green bonds, and green mutual funds/ETFs that bundle multiple green assets. * Green investments can be profitable and have matched or outperformed…

What Is a Green Fund? A green fund is an investment vehicle—commonly a mutual fund or exchange-traded fund (ETF)—that invests in companies and projects with positive environmental impacts or strong environmental, social, and governance (ESG) practices. These funds target businesses involved in renewable energy, green transportation, water and waste management, energy-efficient buildings, sustainable materials, and…

Greenfield Investment What is a greenfield investment? A greenfield investment is a form of foreign direct investment (FDI) in which a company builds a new operation in another country from the ground up. That can include constructing factories, distribution centers, offices and employee housing, and hiring and training staff to the company’s specifications. Unlike acquisitions…

Green Chip Stocks Green chip stocks are shares of companies whose primary businesses or practices are considered environmentally friendly. Investors who prioritize sustainability and socially responsible investing (SRI) often target these companies, which commonly operate in areas such as alternative energy, pollution control, recycling, and water management. Key takeaways Green chips are companies focused on…

Green Card: What It Means, How It Works, Requirements What is a green card? A green card is the informal name for the Permanent Resident Card issued by U.S. Citizenship and Immigration Services (USCIS). It identifies noncitizens who are authorized to live and work in the United States indefinitely. The nickname comes from the card’s…

What is a green bond? A green bond is a fixed‑income debt instrument whose proceeds are dedicated to financing projects with clear environmental benefits. They are backed by the issuer’s balance sheet (or specific project/collateral, depending on the structure) and carry credit risk similar to the issuer’s other debt. Typical uses include renewable energy, energy…

Understanding the Greeks: Key Risk Measures in Options Trading The “Greeks” are numerical sensitivities used to evaluate and manage the risks of options positions. Each Greek is a partial derivative of an option-pricing model (commonly Black‑Scholes) that estimates how an option’s value will change when a single market variable moves. The main Greeks—delta, gamma, theta,…

Greek Drachma Overview The drachma was Greece’s currency from ancient times through most of modern history until it was replaced by the euro. Reintroduced as the national currency in 1832, the drachma remained in use—after several redesigns and redenominations—until the euro became Greece’s sole legal tender in January 2002 (conversion fixed at 340.750 drachmas =…

Greater Fool Theory What it means The greater fool theory holds that investors can profit by buying overpriced assets because there will always be someone (a “greater fool”) willing to pay an even higher price. This approach ignores fundamentals such as intrinsic value, earnings, and valuations and relies instead on finding a buyer later. It…

Great Society The Great Society was a sweeping set of domestic policy initiatives launched by President Lyndon B. Johnson in 1964–1965 aimed at eliminating poverty and racial injustice and improving education, healthcare, the environment, and urban life. Key takeaways Launched by Lyndon B. Johnson, the Great Society created major federal programs in the 1960s to…

Great Recession: What it was and what caused it The Great Recession was a severe global economic downturn centered in the United States that began in 2007 and officially lasted through June 2009. Triggered by the collapse of the U.S. housing market, it morphed into a widespread financial crisis as mortgage-related securities and complex derivatives…

The Great Moderation The Great Moderation refers to a multi-decade period of reduced macroeconomic volatility in the United States starting in the mid-1980s and lasting until the financial crisis of 2007–2008. During this era, fluctuations in real GDP and inflation declined markedly: the standard deviation of quarterly real GDP roughly halved and the variability of…

Great Leap Forward Key takeaways The Great Leap Forward (1958–1961) was Mao Zedong’s campaign to rapidly transform China from an agrarian society into an industrialized communist state through collectivization and mass mobilization. Policies included forced agricultural collectivization, large irrigation projects, a nationwide anti-pest campaign, and promotion of “backyard” steel production. Misguided policies, falsified production reports,…

Great Depression Overview The Great Depression was the deepest and longest economic contraction in modern U.S. history. It began after the 1929 stock market crash and lasted through the 1930s, with recovery accelerating only after U.S. mobilization for World War II in 1941–42. The crisis combined a collapsing asset bubble, severe banking failures, policy mistakes,…

Graduate Record Examination (GRE) Key points * The GRE is a standardized test used by many graduate and business schools to assess readiness for advanced study. * It measures Verbal Reasoning, Quantitative Reasoning, and Analytical Writing. * Verbal and Quantitative scores range from 130–170; combined they form a 260–340 score. Analytical Writing is scored 0–6….

Gray Market What is a gray market? A gray market describes unofficial, legal trade that takes place outside authorized channels. It appears in two main contexts: Securities: over-the-counter (OTC) trading of securities before official exchange trading begins or when securities are suspended. These transactions can indicate demand but cannot be settled until official trading starts….

Gray List: What it Is, How It Works, and Why It’s Confidential What is a gray list? A gray list is an internal list used by a bank’s risk‑arbitrage or merger‑arb desk to identify securities that are temporarily off limits for trading. Inclusion on the gray list does not necessarily mean a stock is fundamentally…

Gray Box Testing Gray box testing is a software testing approach that blends elements of white box (full internal knowledge) and black box (no internal knowledge) methodologies. Testers have partial access to the system’s internals—such as design documents, architecture diagrams, or limited source code—while still evaluating behavior from an external or user-like perspective. It’s commonly…

Gravestone Doji What it is A gravestone doji is a candlestick pattern that can signal a bearish reversal. Visually it resembles an inverted “T”: the open, low, and close are at or very near the same level, and there is a long upper shadow (wick). The long upper shadow shows that buyers pushed prices up…

Grantor Retained Annuity Trust (GRAT) A grantor retained annuity trust (GRAT) is an estate-planning tool that lets a grantor transfer assets into an irrevocable trust, retain the right to receive annuity payments for a fixed term, and pass any remaining appreciation to designated beneficiaries with little or no gift tax cost. How a GRAT works…