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Glossary

General Mortgage Bond

A bond which is secured by a blanket mortgage on the company's property, but which is usually subordinated to one or more other mortgage bonds.

Global mutual fund

Mutual fund that invests in stocks and bonds throughout the world. Usually global funds, unlike international funds, have a portion of their assets in the U.S. market, as well as Europe, Asia and the developing countries.

Globalization

The melding of international markets as a result of advances in telecommunications and transportation, increasing global trade and new competitors in the developing world.

Going concern evaluation

An actuarial report valuing the assets of the pension plan and the expected cost of the promised benefits based on the assumption that the plan is continuing. 

Good till cancelled order

This is an order to buy or sell a security that remains in effect until it is either executed or cancelled. It is also known as an open order.

Goodwill

Goodwill is an intangible asset of a company. The buyer of a business is often willing to pay for the "good name" of the business in addition to the value of its assets. Goodwill appears on the balance sheet as the excess of the amount paid for the shares over their net asset value.

Government of Canada securities auction

A process used for selling Government of Canada debt securities (mostly marketable bonds and treasury bills) in which issues are sold by public tender to government securities distributors

NOTE: Conventional marketable bonds and treasury bills are sold at the actual bid price (at multiple-price auctions) while Real Return Bonds are sold at the highest accepted yield, i.e., the lowest accepted price (at Dutch auctions). The Bank of Canada, as fiscal agent for the Government of Canada, conducts the auctions. For information on auction rules, see Government Securities Auctions.

Government of Canada Yield

"Government of Canada Yield” on any date means the yield to maturity on such date (assuming semi-annual compounding) of a Canadian dollar denominated non-callable Government of Canada bond with a term to maturity of five years as quoted as of 10:00 a.m. (Toronto time) on such date and which appears on the Bloomberg Screen GCAN5YR Page on such date; provided that, if such rate does not appear on the Bloomberg Screen GCAN5YR Page on such date, the Government of Canada Yield will mean the average of the yields determined by two registered Canadian investment dealers selected by the issuer, as being the yield to maturity on such date (assuming semi-annual compounding) which a Canadian dollar denominated non-callable Government of Canada bond would carry if issued in Canadian dollars at 100% of its principal amount on such date with a term to maturity of five years.

Grandfather clause

 A person or business can sometimes be "grandfathered" or exempt from a new rule if they are already engaged in the activity coming under regulation.

Grant contribution room

Each child up to and including the age of 17, while a Canadian resident for tax purposes, begins to accumulate grant contribution room at a rate of $500/yr.

Green dots

Small, oval, green paper disks randomly distributed on both sides of the Birds of Canada bank notes series. Some appear on the surface of the note while others are embedded into the paper. Planchettes can often be removed with a sharp instrument, and they glow under ultraviolet light.

Note: Counterfeit planchettes are printed on the note and attempts to pick them off will damage the paper. They are irregular in shape and are usually found in the same place on each note.

Gross domestic product (GDP)

The most frequently used measure of Canada's economic climate that represents the sum of all the goods and services products in the economy. A change in GDP indicates growth or contraction in the economy. Comprehensive figures are published every three months, and a separate monthly series of seasonally-adjusted GDP accounts provide a more current account of economic activity.

Gross national product (GNP)

GDP plus the income accruing to domestic residents as a result of investments abroad, minus the income earned in domestic markets accruing to foreigners abroad.

Gross-up and Credit System

A procedure to encourage Canadians to invest in preferred and common shares of taxable, dividend-paying Canadian corporations by giving a tax break to such investors. The taxpayer pays tax based on grossing-up i.e. adding 25% to the amount of dividends actually received and then obtaining a credit against federal and provincial tax based on the grossed-up amount. This system is not available on interest from bonds.

Growth of $10,000 graph

Found in the Quicktakes Performance section, the Growth of $10,000 graph shows a fund's performance based on how $10,000 invested in the fund would have grown over time. The returns used in the graph are not load-adjusted. The growth of $10,000 begins at the date of the fund's inception, or the first year listed on the graph, whichever is appropriate. Located alongside the fund's graph line is a line that represents the growth of $10,000 in the benchmark index for that fund's category. A third line represents the fund's category. These lines allow investors to compare the performance of the fund with the performance of a benchmark index and the fund's category. All three lines are plotted on a logarithmic scale, so that identical percentage changes in the value of an investment have the same vertical distance on the graph. For example, the vertical distance between $10,000 and $20,000 is the same as the distance between $20,000 and $40,000 because both represent a 100% increase in investment value. This provides a more accurate representation of performance than would a simple arithmetic graph.

Growth stock

Usually a non-dividend paying common stock of a company with expansion potential. The corporate funds that would normally be paid to shareholders as dividends are put back into the company to pay for expansion. Growth stocks have the potential for capital gains rather than income.

GTC Order

This stands for a "good till cancelled" order. This is an order to buy or sell a security at a specified price, which is valid until executed or cancelled. This is the same as an open order.

Guaranteed Investment Certificates (GICs)

A deposit instrument most commonly available from trust companies or banks requiring a minimum investment at a predetermined rate of interest for a stated term (i.e. one year, five years, etc.). Generally non-redeemable and non-transferable prior to maturity, but there can be exceptions.

Guaranteed pension

A pension that will be paid to a person for his or her lifetime, with a minimum number of payments guaranteed. For example, if the plan member opts for a five-year guarantee but dies after three years, payment will continue to the survivor or the estate for two more years. 

Guarantor

A person who agrees to cover debts and liabilities in the account of the guaranteed client.

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