• GS Glossary

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    All Ordinaries
    A type of bond index
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    Analyst
    1. A person who studies financial markets and components of them to contribute strategic data 2. As in program at Goldman Sachs, the point of entry for highly qualified college graduates
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    Asset Allocation
    The apportionment of an investment portfolio among the various asset classes or markets (cash, fixed interest, property, and shares) in line with the investment outlook of the investor or investment manager
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    Assets
    The resources available to an individual or organization
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    Big Buddy
    At Goldman Sachs, an experienced associate who answers questions, helps you figure out how to complete your work, shows you where to find the information you need and, more generally, looks out for your well-being
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    Block Trade
    A trade involving a large quantity of stock or large dollar amount of bonds. Loosely, a block trade would involve 10,000 or more stock shares or in excess of US$200,000 in bonds.
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    Bond
    In its basic form, a bond is a loan and reflects a promise by a borrower (the issuer of the bond) to repay the amount borrowed (principal) at a specific date in the future, at an agreed upon interest rate. The maturities of bonds vary significantly but are generally longer term and often longer than one year. Bonds also vary based on the type of issuer (corporate, municipal, government entity) and in their structure, such as coupon interest, yield, protection of principal, put and call features, tax implications, etc. Issuers use the bond markets to raise debt capital
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    Brokerage
    A commission or charge by an intermediary, such as a stockbroker, for the execution of a transaction
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    Capital Goods
    Goods used in the production of other goods and which make up a country's total productive capacity. These goods include industrial buildings, machinery and equipment
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    Clearing and Settlement
    Process of completing a transaction
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    Commercial Paper
    Commercial Paper is short-term, unsecured debt sold by corporations and financial institutions as an alternative to bank borrowings
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    Commission
    Payments made by the provider of a product to its seller for its sale/maintenance
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    Commodities
    Raw materials such as grain or precious metals. Contracts for purchase and sale of commodities are sold on commodities exchanges
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    Controllers
    Department that oversees financial accounts and transactions for the firm
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    Currency
    Money in circulation as a means of financial exchange
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    D
    Derivatives
    Futures and options on various commodities or securities
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    Disclosure
    Release of information relevant to a transaction. In a securities transaction, the dealer often discloses details of any commission or remuneration generated by the transaction and any other relevant interests they have
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    Economics
    The science of the production and consumption of goods and services
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    Equity
    The value of the ownership of an investment
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    Equity Story
    Background research identifying strengths and weaknesses related to a stock, assessing institutional investors' interests in purchasing the stock, valuation, and supporting our banking professionals on the structural elements of the deal.
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    Exchange Floor
    Location at a securities exchange where transactions take place
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    Financial Models
    Tools used to determine the value of an investment in a company, commodity, currency, government initiative, etc. To build a financial model, an analyst may consider past performance, current market trends, political climate and overall value of the issuer, for example
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    Fixed Income
    Interest-bearing notes, bonds and bills that pay a specified percentage of interest over the life of the loan
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    Future
    A contract obligating the holder to buy or sell a commodity or security at a specific price on a specific date
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    Gearing
    The relationship between ownership (equity) and associated borrowings. In a highly geared situation, the borrower has a high level of debt relative to equity. The higher the gearing the greater the risk and the greater the potential for profit or loss
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    Generally Accepted Accounting Principles
    A doctrine of the American Institute of Certified Public Accountants that details as well as generalizes the conventions, rules and guidelines of accounting practices
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    Global Control
    1. At Goldman Sachs, a department 2. The way we manage our assets worldwide
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    Green Shoe
    A clause in an underwriting agreement that says the issuer will authorize additional shares for distribution by the purchase group in cases of exceptional public demand
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    Hedge Fund
    A fund invested in a way to provide balance against risks taken as a result of other investments
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    Hedging
    A strategy for balancing risks, as in to hedge one's bets
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    Imagination
    The ability to perform creative mental reflections in response to challenges and opportunities
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    Indices
    Mathematical expressions of the value of various groupings of assets. They enable the performance of various market sectors to be measured over time. Examples are the All Ordinaries, All Industrials, and 5-to-10 year bond indices.
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    Investment Bank
    1. Traditionally, a company that prepares financial offerings for public sale 2. In today's expanding and interconnected world, a company like Goldman Sachs that provides its clients with a wide variety of investment vehicles
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    IPO
    (Initial Public Offering) The first issue of stock or other securities by a company for sale to the public
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    Issue
    A series or quantity of financial securities made available for sale
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    Macroeconomies
    Like those of an industry (e.g., steel) or government that include the widest variety of factors (inflation, interest rates, monetary policy, government budgets, unemployment, exchange rates, and balance of payments information) that contribute to an assessment of the entity's strength or weakness
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    MD
    Managing Director at Goldman Sachs
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    Mentor
    At Goldman Sachs, a senior person assigned to you to be your advocate
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    MTN
    Medium-term notes; bonds with a maturity of 2 to 10 years
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    Mutual Fund
    A fund operated by an investment firm that raises capital from shareholders to invest in stocks, bonds, options, commodities or money market securities. These funds offer investors the advantages of diversification and professional management
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    O
    Options
    The right to buy or sell a commodity or security on a specific date for a predetermined price. The investor forfeits the investment money if the right is not exercised by the option expiration date
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    P
    Portfolio Manager
    A person responsible for the profitable direction of certain aggregated investments
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    Private Equity
    Investment capital provided by individuals or closely-held companies
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    Prospectus
    The offer-document for a securities investment. The prospectus sets out details of the terms, fees and charges of what is to be offered, as well information about the issue
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    Public Offerings
    1. Process and documents related to making securities available for sale to the public 2. Volunteer services that Goldman Sachs employees provide to the communities in which they live
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    Q
    Qualitative Research
    Research into how an investment's results were achieved including the quality of the people, strategies, systems and infrastructure that achieved them
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    Quantitative Research
    Numbers-related research using statistical analysis of past performance of companies, products, segments, etc.
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    Red Herring
    The popular name given to a preliminary prospectus because portions of the cover page are done in red ink
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    Repo
    A repurchase agreement; an investment vehicle in which the seller agrees to buy back the securities for an agreed-upon price, usually at a stated time
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    Risk
    What Goldman Sachs takes, strategically, in order to make money
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    Road Show
    A marketing trip accompanying the client's senior management to investor presentations that explain the company's business objectives and strategy, and fielding questions from potential investors related to the offering
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    S
    Securities
    Stocks and bonds
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    Software
    1. Programs that run on a computer 2. (a) What gives Goldman Sachs that sharper competitive edge (b) What Goldman Sachs builds and for which Goldman Sachs is recognized as a leader
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    Stock
    Ownership of a piece of a corporation represented in shares
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    Strategy
    The art and science of devising a plan for achieving a specific goal

     

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    Tenacity
    Determination, perseverance; a great quality to have when working in a challenging, dynamic, and exciting environment like that of Goldman Sachs

    Tombstones

    Advertisements in the financial press placed to announce securities offerings

    Traders

    People who buy and sell securities for brokers, dealers, and for their own accounts

    W

    White Knight

    A friendly acquirer sought by a company that is subject to an unfriendly takeover


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