Giffen good
An increase in income results in a fall in demand for the good. A Giffen good is an extreme form of inferior good. It arises because the income effect is opposite to and outweighs the substitution effect. |
Similar financial terms
GoodwillThe value of a business to a purchaser over and above its net asset value. It reflects the value of intangible assets like:
- reputation
- brand name
- good customer relations
- high employee morale
- other factors which improve the company's business.
Goodwill is normally given a value in a company's balance sheet, but is depreciated over a period of time.
Good till cancelled order
A good till cancelled order (GTC) is an order to a broker instructing him to buy or sell shares at a specified price which remains valid until cancelled by the client or by execution.
Open (good-til-cancelled) order
An individual investor can place an order to buy or sell a security. That open order stays active until it is completed or the investor cancels it.
Goodwill impairment
An asset reported mainly as goodwill on the balance sheet may be worth much less than the value reported. In this case the good will is impaired and the company will likely have to take a write-down on this asset. This often happens when intellectual property such as software is acquired and a premium price is paid for it. Subsequently, if the software is not commercialized, the goodwill associated with it must be reduced - often to zero.
Public goods (collective goods)
These are a distinctive class of goods which cannot practically be withheld from one consumer without withholding them from all (the "nonexcludability criterion") and for which the marginal cost of an additional person consuming them, once they have been produced, is zero (the "nonrivalrous consumption" criterion).
The classic example of a nearly pure public good is national defense: you cannot defend the vulnerable border regions of a country from the ravages of foreign invaders witho ...
Goodhart Law
The Goodhart Law is a law developed by Professor Charles Goodhart (who has also served as a member of the Monetary Policy Committee) that says "that any observed statistical regularity will tend to collapse once pressure is placed on it for control purposes". In other words if a relationship between two variables is observed, and the government then try to use this relationship as a policy tool, the whole relationship is likely to break down.
Good This Week Order (GTW)
Order which is valid only for the week in which it is placed.
