Glossary


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Golden Parachute

    A plan devised by existing management stipulating that an acquiring company has to pay executives of the acquired company a substantial sum of money in the event of removing the former.
Government National Mortgage Association ("Ginnie Mae")
    A government-owned corporation that purchases mortgages and re-packages them as pass-through securities. The holder of a pass-through bond owns a portion of the underlying mortgages.
Greenmail
    In a typical greenmail, the acquiring firm has already purchased a number of shares of the target firm's stock. Management of the target company offers to buy back the stock, at a price higher than the market.
Growth Stocks
    Stocks of companies that have an opportunity to invest in projects that earn more that the required rate of return.