Financial lexicon

Gap

Graphic analysis term used during a bullish market to describe a difference between the highest price of the day and the lowest one of the next day. In a bearish market, the gap reflects the different between the lowest price of the day and the highest one on the following day. The « chartist » (analyst of market action) theory suggests that a gap invariably disappears, implying a return of prices in this area.

Going public

Operation where a company seeks to secure sources of funding from the public at large. It help companies reduce their dependency on financial institutions by calling on the public at large(or calling on the public as an additional element) rather than seeking bank loans.

Good until Cancelled

Expression to describe an order to buy or sell securities that is valid unless cancelled by the investor.

Gordon Shapiro

"Mathematical model for determining prices, by conversion to current value of future dividends. The security price therefore corresponds to the following calculation: : Dividende / (t-g) ; t being the present value rates and g, the anticipated rate of growth for the dividends."

Graphic analysis

Analysis based on an interpretation of historic price curves and volumes The aim is to anticipate future movements in the light of the principle that events repeat themselves over time.

Grey market

In this case, securities not officially quoted are traded outside the regulated market.

Guarantee fund

A guarantee fund is designed to compensate customers in the event a stockbroking firm goes bankrupt. The fund is supplied by contributions. For each customer, the guarantee is limited to 2.5 million Francs for securities and 0.5 million for in-cash items.