Category: Financial Terms

SEC Release IA-1092: Overview and Implications What IA-1092 is SEC Release IA-1092 is an interpretive memorandum issued jointly by the U.S. Securities and Exchange Commission (SEC) and the North American Securities Administrators Association (NASAA) that clarifies how federal and state securities laws apply to persons and firms who provide financial planning or investment-advisory services. Issued…

1040EZ Form Form 1040EZ was the shortest, simplest version of the IRS Form 1040 for taxpayers with very basic returns. It was discontinued after the 2018 tax year when the IRS redesigned Form 1040 and eliminated Forms 1040A and 1040EZ. What it covered 1040EZ was intended for filers with straightforward income and few or no…

Form 1040-A: Overview Form 1040-A was a simplified U.S. individual income tax return formerly offered by the IRS as an alternative to the standard Form 1040. It allowed taxpayers with relatively simple tax situations to report income, claim a limited set of deductions, and take certain tax credits on a shorter, two-page form. The form…

Form 1040: U.S. Individual Tax Return Form 1040 is the standard Internal Revenue Service (IRS) form individuals use to file their annual federal income tax return. It collects personal information, reports taxable income and deductions, and calculates whether the filer owes additional tax or is due a refund. The form uses a modular approach: taxpayers…

100% Equities Strategy A 100% equities strategy allocates a portfolio’s investable assets solely to stocks. It generally involves long positions in equities—publicly listed shares, over-the-counter stocks, or private equity—without holdings in bonds, cash equivalents, or other asset classes. Such strategies are common among mutual funds and other pooled vehicles that focus exclusively on equities. Key…

10-Year U.S. Treasury Note What it is A 10-year Treasury note is a debt security issued by the U.S. government with a 10-year maturity. It pays a fixed interest (coupon) twice a year and returns the face value (par) at maturity. Treasuries are used by the government to fund operations and are considered among the…

What is SEC Form 10-Q? SEC Form 10-Q is a quarterly report that publicly traded U.S. companies must file with the Securities and Exchange Commission (SEC). It provides unaudited financial statements and disclosures about a company’s financial condition and operations for each of the first three fiscal quarters. The fourth quarter is reported in the…

10-K Wrap: What It Is, How It Works, Key Elements A 10-K wrap is a concise summary report that pairs the formal Form 10-K filed with the U.S. Securities and Exchange Commission (SEC) with limited additional company commentary. It presents the required, detailed financial and organizational disclosures from the 10-K alongside a short, more personal…

Form 10‑K: What it is and why it matters Form 10‑K is the comprehensive annual report that publicly traded companies must file with the U.S. Securities and Exchange Commission (SEC). It provides a detailed, audited view of a company’s business, financial condition, risks, and management’s discussion of results—information investors and regulators use to evaluate performance…

1%/10 Net 30: Meaning and How It Works What it means “1%/10 net 30” is a common invoice payment term that offers a 1% discount if the buyer pays within 10 days; otherwise the full invoice amount is due within 30 days. It’s a seller incentive to accelerate cash inflows and a short-term credit decision…

0x Protocol The 0x (pronounced “zero x”) protocol was an open-source Ethereum protocol designed to enable peer-to-peer exchange of ERC‑20 tokens. Rather than being a single decentralized exchange (DEX), 0x provided the building blocks—smart contracts, message formats, and an order-relay model—that developers could use to create decentralized trading applications. History and context Founded by Will…

Graduated Payment Mortgage (GPM) A graduated payment mortgage (GPM) is a fixed-rate home loan with payments that start lower and increase at set intervals over time. The schedule is designed to match borrowers who expect rising incomes, allowing easier initial qualification and lower early monthly payments. Payments typically grow by a fixed percentage annually until…

Graduated Lease: What It Means and How It Works A graduated lease (also called a graded lease) is a rental agreement that specifies scheduled adjustments to payments over the lease term. Rather than a fixed monthly payment, rent changes periodically according to predefined triggers—commonly increases—to reflect market conditions, property value changes, or other benchmarks. How…

Graduate Management Admission Test (GMAT) The Graduate Management Admission Test (GMAT) is a standardized exam used by many business schools to assess applicants’ analytical, quantitative, verbal, and writing skills. It helps admissions committees evaluate candidates’ readiness for graduate management programs such as MBAs. Key points Administered by the Graduate Management Admission Council (GMAC). Four sections:…

Graded Vesting: What It Is and How It Works Definition Graded vesting is a schedule that gradually grants employees ownership of employer contributions to retirement plans, pension benefits, or stock options over a series of years. Unlike cliff vesting (full ownership after a single waiting period) or immediate vesting (ownership from day one), graded vesting…

Grace Period: What It Means and How It Works Key takeaways * A grace period is a short span after a payment due date during which payments can be made without penalties. * Terms vary by contract—length, whether interest accrues, and what triggers penalties are all contract-dependent. * Credit cards have a specific grace period…

Government-Wide Acquisition Contracts (GWACs) A government-wide acquisition contract (GWAC) is a precompeted, multiple-award contract that federal agencies use to buy information technology (IT) products and services. One agency typically acts as the executive agent to award and manage the contract, while other agencies place orders against it. GWACs are designed to deliver IT solutions more…

Government-Sponsored Retirement Arrangement (GSRA) — Overview A Government-Sponsored Retirement Arrangement (GSRA) is a Canadian retirement plan for individuals who are not government employees but are paid from public funds (for example, workers employed by private agencies that receive revenue from federal, provincial, or local governments). GSRAs are not registered with the Canada Revenue Agency (CRA),…

Government-Sponsored Enterprises (GSEs): Definition, How They Work, and Key Examples A government-sponsored enterprise (GSE) is a privately held entity created by an act of Congress to improve the flow of credit to targeted sectors of the U.S. economy (most prominently housing and agriculture). GSEs pursue a public mission—such as increasing homeownership or supporting agricultural lending—while…

Government Shutdown: Definition, Effects, and What to Expect Key takeaways * A government shutdown occurs when Congress fails to pass funding that covers the next fiscal year, forcing nonessential federal operations to pause. * Essential public-safety functions continue, but some employees may work without pay until funding is approved. * Many benefits (veterans’ benefits, unemployment…

Government Security: Definition, Types, Risks, and How to Buy Key takeaways * A government security is a debt instrument issued by a government to raise funds for operations and projects. * U.S. Treasuries (bills, notes, bonds) are widely regarded as low‑risk because they are backed by the U.S. government, but they typically offer lower yields…

Government Securities Clearing Corporation (GSCC) Key takeaways The GSCC provided centralized clearing and netting for U.S. government and agency debt securities. Established in 1986 by the National Securities Clearing Corporation (NSCC). It reported, validated, and matched buy and sell sides, and acted as the settlement counterparty for net positions. Final settlements were effected over Fedwire…

Government Purchases: Definition, Examples, and Role in GDP Key takeaways * Government purchases are expenditures on goods and services by federal, state, and local governments, excluding transfer payments and interest on the public debt. * They are one of four components of GDP under the expenditure approach and can influence economic activity through direct demand…

Government Pension Fund of Norway — Overview and Key Facts What it is The Government Pension Fund of Norway refers collectively to two state investment funds that channel Norway’s petroleum revenues to support public pensions and long‑term fiscal stability: – Government Pension Fund Global (GPFG), commonly called the Oil Fund — a large, internationally invested…

Government of Singapore Investment Corporation (GIC) Overview The Government of Singapore Investment Corporation (GIC), officially GIC Private Limited, is Singapore’s sovereign wealth fund manager. Established in 1981 to invest the country’s reserves over a longer horizon and in higher-yielding asset classes, GIC is one of three entities involved in managing Singapore’s reserves alongside the Monetary…

Government National Mortgage Association (Ginnie Mae) The Government National Mortgage Association (Ginnie Mae or GNMA) is a federal government corporation that guarantees the timely payment of principal and interest on mortgage-backed securities (MBS) issued by approved lenders. By connecting federally insured mortgages to capital markets, Ginnie Mae helps lower borrowing costs and expand access to…

Government Grants: What They Are and How to Apply What is a government grant? A government grant is a non‑repayable financial award from a federal, state, or local government to support projects that provide a public benefit. Grants are transfer payments—not loans—and recipients are expected to use funds for the stated purpose and to meet…

Government Bonds Government bonds are debt securities issued by federal, state, or local governments to raise funds for public spending. Investors who buy these bonds lend money to the issuer in exchange for periodic interest (coupon) payments and return of principal at maturity. Because they are backed by governments, these bonds are generally considered low-risk…

Governmental Accounting Standards Board (GASB) The Governmental Accounting Standards Board (GASB) is an independent, private organization that establishes accounting and financial reporting standards—generally accepted accounting principles (GAAP)—for U.S. state and local governments. Its standards promote clear, consistent, transparent, and comparable financial information used by taxpayers, bondholders, legislators, and oversight bodies to evaluate government finances and…

Government Accountability Office (GAO) Key takeaways The GAO is an independent, nonpartisan legislative agency that audits and evaluates federal government spending and operations. It provides objective information, reports, and recommendations to Congress to improve efficiency, accountability, and fiscal management. The GAO issues audit standards (the “Yellow Book”) and performs audits, program reviews, investigations, and legal…

Governance, Risk Management, and Compliance (GRC) — A Concise Guide What is GRC? GRC (Governance, Risk Management, and Compliance) is a coordinated approach that aligns governance, risk management, and compliance activities across an organization. Its purpose is to break down departmental silos, improve information sharing, reduce duplication, lower costs, and better manage legal, financial, and…

Gordon Growth Model The Gordon Growth Model (GGM) is a dividend-discount valuation method that estimates a stock’s intrinsic value by assuming dividends grow at a constant rate forever. It’s a simple, widely used tool best suited for companies with stable, predictable dividend policies. The formula P = D1 / (r − g) Explore More Resources…

Gordon Growth Model The Gordon Growth Model (GGM) is a dividend-discount valuation method that estimates a stock’s intrinsic value by assuming dividends grow at a constant rate forever. It’s a simple, widely used tool best suited for companies with stable, predictable dividend policies. The formula P = D1 / (r − g) Explore More Resources…

Gordon Gekko Gordon Gekko is the iconic fictional antagonist from Oliver Stone’s 1987 film Wall Street and its 2010 sequel Wall Street: Money Never Sleeps. Presented as a ruthless, immensely wealthy corporate raider, Gekko became a cultural shorthand for 1980s excess and corporate greed—captured by his infamous line, “Greed is good.” The character and plot…

Google Tax: What it is and how it works A “Google tax” is an informal name for measures—officially called diverted profits taxes—designed to stop multinational companies from shifting profits earned in one country to jurisdictions with much lower or zero tax rates. The term arose after major tech firms, notably Google (Alphabet), routed significant UK…