Glossary

G

• Goodwill There are certain intangible assets in the form of present reputation of the company/firm generated through the continuous and efficient supply of quality product and services. This is known as the goodwill of the company. Goodwill must be amortized. In case of merger or acquisition, the extra consideration paid by the acquiring firm to the acquired firm is recorded in the books as goodwill.
• Governments Securities Any securities issued by the government or its agencies.
• Green-shoe Option A Green Shoe option means an option of allocating shares in excess of the shares included in the public issue and operating a post-listing price stabilizing mechanism for a period not exceeding 30 days in accordance with the provisions of Chapter VIIIA of DIP Guidelines, which is granted to a company to be exercised through a Stabilizing Agent. This is an arrangement wherein the issue would be over allotted to the extent of a maximum of 15% of the issue size. From an investor’s perspective, an issue with green shoe option provides more probability of getting shares and also that post-listing price may show relatively more stability as compared to market.
• Gross Exposure The net cumulative outstanding in various stocks at a time that has not been squared off is called Gross exposure.
• Gross working capital This is capital required to run the day to day expenses of the company. This is the money invested in the various current assets like inventory, bills payable, pre paid expenses etc. In all it refers to the firm's investment in current assets.  
• Guts A recognized option strategy, which involves the simultaneous purchase (sale) of an in-the-money call at one exercise price and the purchase (sale) of an in-the-money put at a higher exercise price in one single transaction.