Category: Financial Terms

Geographical Pricing: Definition, How It Works, and an Example What is geographical pricing? Geographical pricing is the practice of setting different prices for the same good or service depending on the buyer’s location. Price differences can reflect costs (shipping, taxes) or demand-side factors (local willingness to pay, competitive dynamics). The goal is to optimize revenue…

Geographical Labor Mobility Geographical labor mobility measures how easily workers can relocate within a country or region to take jobs that match their skills. Higher mobility generally supports better allocation of labor, greater productivity, and stronger economic performance. Key takeaways Mobility depends on physical, economic, social, and policy factors. Occupational mobility (changing jobs or careers)…

Geographical Diversification: Meaning, Overview, Pros and Cons What is geographical diversification? Geographical diversification is the practice of holding investments or locating business operations across multiple countries or regions to reduce risk. For investors, it means allocating assets to securities from different parts of the world rather than concentrating in a single country or market. For…

Genuine Progress Indicator (GPI) The Genuine Progress Indicator (GPI) is an alternative to Gross Domestic Product (GDP) that seeks to measure a nation’s economic progress more holistically by including environmental and social factors. Rather than counting only market transactions, GPI adjusts economic output for costs and benefits that affect well‑being—such as pollution, volunteerism, crime, and…

Gentrification Explained: Causes, Impacts, and Responses What is gentrification? Gentrification is the process by which urban neighborhoods shift from lower to higher market value, often driven by an influx of higher-income residents, investment, and development. It typically brings improved infrastructure, services, and property values but can also raise living costs and displace long-time residents. Key…

Gentlemen’s Agreements Key takeaways A gentlemen’s agreement is an informal, often unwritten, promise between parties backed by honor, reputation, and social pressure rather than legal force. Such agreements can reduce transaction costs and add flexibility, but they lack formal enforcement and can enable illegal or discriminatory practices. Historically common in business and international relations, gentlemen’s…

Genetically Modified Foods (GMF): Benefits, Risks, and the Global Debate Genetically modified foods (GMF) are foods derived from organisms whose genetic material has been altered using biotechnology to introduce traits that do not occur—or are difficult to achieve—through traditional breeding. Commercial GM crops have been grown since the 1990s and are now a significant part…

Genesis Block: The Origin of Bitcoin The Genesis Block is the very first block in the Bitcoin blockchain—Block 0—the ancestor that every subsequent block traces back to. Created by Satoshi Nakamoto in January 2009, it launched Bitcoin’s ledger of decentralized, verifiable transactions and the process by which new bitcoins enter circulation. How the blockchain and…

Generic Brand: Definition, Types, and How It Differs from Store Brands A generic brand is a consumer product sold without a widely recognized name or logo and typically offered at a lower price than comparable name-brand items. Generic products rely on simple packaging and reduced marketing, and they are designed to be functional substitutes for…

Generation X (Gen X) Definition and overview Generation X generally refers to people born between the mid-1960s and the early 1980s (most commonly cited range: 1965–1980). Positioned between the baby boomers and millennials, Gen X numbers roughly 65 million in the United States. The label “Generation X” gained popular currency from Douglas Coupland’s 1991 book…

Generation‑Skipping Trust (GST): Definition and How It’s Taxed Key takeaways * A generation‑skipping trust (GST) transfers assets directly to beneficiaries who are at least 37½ years younger than the grantor (commonly grandchildren), effectively bypassing the grantor’s children. * The goal is to avoid estate taxation at each generation—assets in a GST are generally taxed only…

What is the Generation-Skipping Transfer Tax (GSTT)? The generation-skipping transfer tax (GSTT) is a federal tax that applies when property is transferred by gift or inheritance to a beneficiary who is at least 37½ years younger than the transferor (commonly grandchildren). It was created to prevent families from avoiding estate taxes by “skipping” a generation—so…

Understanding the Generation Gap A generation gap describes differences in beliefs, values, behaviors and communication styles between age cohorts shaped by the social, economic and technological conditions of their formative years. For businesses, recognizing these differences helps tailor products, marketing, workplace policies and customer service to diverse needs and preferences. Key takeaways Generation gaps arise…

Generally Accepted Principles and Practices (GAPP) What GAPP Are Generally Accepted Principles and Practices (GAPP), also known as the Santiago Principles, are a set of voluntary standards for sovereign wealth funds (SWFs). They promote transparent, prudent, and professional governance and investment practices so that SWFs operate on financial and economic grounds rather than political objectives….

Generally Accepted Auditing Standards (GAAS) Generally Accepted Auditing Standards (GAAS) are a set of guidelines auditors follow when planning, performing, and reporting on audits of financial statements. Established by the Auditing Standards Board of the American Institute of Certified Public Accountants (AICPA), GAAS promotes consistency, reliability, and transparency in audit work. Key points GAAS governs…

Generally Accepted Accounting Principles (GAAP) What is GAAP? Generally Accepted Accounting Principles (GAAP) are the standard framework of accounting rules, standards, and procedures used in the United States for preparing, presenting, and reporting financial statements. GAAP is intended to ensure financial statements are complete, consistent, and comparable so investors, lenders, and other users can make…

General Public Distribution: What It Is, How It Works, Example What is a general public distribution? A general public distribution describes the process by which a privately held company sells shares to the public for the first time. In practice this usually takes place through an initial public offering (IPO). When an IPO is structured…

General Provisions — What They Are and How They Work Key takeaways * General provisions are balance-sheet reserves set aside to cover anticipated future losses. * Amounts are estimated and recorded as an expense with a corresponding liability (or allowance) on the balance sheet. * Lenders and banks maintain provisions/reserves to cover potential loan defaults…

General Partnership: Definition, How It Works, and Key Considerations What is a general partnership? A general partnership is an unincorporated business owned by two or more people who agree to share management, profits, and liabilities. It’s a pass-through entity: the partnership itself does not pay income tax; profits and losses flow through to partners’ personal…

General Partner: Definition, Role, Examples, and Main Benefits What is a general partner? A general partner is an owner in a partnership who actively manages the business and has the authority to act on its behalf. General partners share in the partnership’s profits and losses and, unlike limited partners, typically face unlimited personal liability for…

General Order (GO): Understanding Imports With Missing Paperwork A general order (GO) is a customs status applied to imported goods that lack proper documentation, have unpaid duties or fees, or otherwise cannot be cleared quickly. Goods become subject to general order if they remain uncleared for more than 15 days after arrival. Key takeaways Goods…

General Obligation Bond (GO) What is a GO bond? A general obligation (GO) bond is a municipal bond backed by the issuing government’s credit and taxing power rather than by revenue from a specific project. Repayment is secured by the issuer’s pledge to use available resources—including the ability to levy taxes—to meet debt service. GO…

General Manager (GM): Role, Responsibilities, Skills, and Career Outlook What is a General Manager? A General Manager (GM) oversees the operations of a business unit, branch, or department. Positioned between front-line managers and executive leadership, a GM is responsible for driving efficiency, profitability, and strategic execution across multiple functions such as operations, finance, HR, and…

What Is a General Ledger? A general ledger is a company’s central record-keeping system for financial transactions. It organizes transactional data into accounts—assets, liabilities, equity, revenues, and expenses—and provides the balances needed to prepare financial statements. Key Takeaways * The general ledger is the foundation of double-entry accounting. * It consolidates transactions from sub-ledgers and…

General Depreciation System (GDS) Key takeaways The General Depreciation System (GDS) is the most commonly used part of the Modified Accelerated Cost Recovery System (MACRS) for U.S. federal tax depreciation of tangible property. GDS typically uses an accelerated (declining-balance) method, producing larger deductions in early years and smaller ones later. The Alternate Depreciation System (ADS)…

General Equilibrium Theory General equilibrium theory (Walrasian general equilibrium) analyzes the economy as a whole, showing how supply and demand across multiple interconnected markets interact and tend toward a system-wide balance. Developed by Leon Walras in the late 19th century, it contrasts with partial equilibrium analysis, which examines individual markets in isolation. Core ideas Markets…

General Data Protection Regulation (GDPR) The General Data Protection Regulation (GDPR) is the European Union’s comprehensive framework for protecting personal data. Effective since May 25, 2018, it standardizes data protection across EU and EEA member states and gives individuals stronger control over how their personal information is collected, processed, stored and transferred. Key takeaways GDPR…

General Collateral Financing Trades (GCF) Definition General collateral financing (GCF) trades are a form of repurchase agreement (repo) in which the specific securities used as collateral are not designated until the end of the trading day. These transactions are facilitated by inter-dealer brokers and typically involve high-quality, liquid assets treated as interchangeable — “general collateral.”…

General Business Tax Credit (Form 3800) Key takeaways The General Business Credit (GBC) is the combined value of a business’s individual tax credits for a tax year, including carryforwards from earlier years and current-year credits. To claim multiple business credits, taxpayers complete the IRS form for each credit and report the total on Form 3800….

General and Administrative Expense (G&A) What G&A expenses are General and administrative (G&A) expenses are the day‑to‑day operating costs of running a business that are not directly tied to producing a specific product or delivering a specific service. They are a subset of operating expenses and typically exclude selling or production costs. Common characteristics: *…

Escrow Agreements: Definition, How They Work, and Common Uses What is an escrow agreement? An escrow agreement is a contract that appoints a neutral third party—the escrow agent—to hold assets (cash, securities, deeds, documents) until specified contractual conditions are met. It adds security and certainty to transactions by ensuring assets are released only when all…

General Agreement on Tariffs and Trade (GATT) Key takeaways GATT was a multilateral treaty signed in 1947 by 23 countries to reduce barriers to international trade. It established rules and negotiation rounds that gradually lowered tariffs and constrained discriminatory trade policies. GATT’s principles—especially most‑favored‑nation (MFN) treatment—were carried forward into the World Trade Organization (WTO), created…

General Account Definition A general account is the insurer’s central fund where premiums from policyholders are pooled. Funds in the general account are held collectively to cover reserves, operating expenses, and policy liabilities rather than being tied to any single policy. How it works Premiums paid by policyholders are deposited into the general account. The…

Gemology: Identifying, Valuing, and Working with Gemstones Key takeaways * Gemology is the science of identifying, grading, cutting, and valuing gemstones. * Identification relies on physical and optical properties (e.g., color, clarity, refractive index), not just appearance. * Professionals include gemologists, appraisers, lapidaries, jewelers, and researchers. * Gemstones can be investment assets but are often…

Gemini Exchange: Overview, Products, and Key Issues Key takeaways * Gemini is a cryptocurrency exchange and regulated custodian founded by Cameron and Tyler Winklevoss. * It combines a retail exchange, an advanced trading platform, and a custodial service that includes insurance coverage for digital assets. * Gemini has expanded its product set and partnerships but…