Introduction to Finance

t
consumption spending, impact, 288
corporate debt percentage, 568
f
defined, 38, 104
government budget deficits, relationship, 
106
impact, 92
money supply, relationship, 125–126
nominal GDP, expression, 38
Gross domestic product investment (GPDI), 
167
defined, 167
Gross investment, gross savings (impact), 169
Gross savings, impact, 169, 170
t
Growth, changes (impact), 581
Growth rates
internal growth rates, 579–580
planning, 579–581
sustainable growth rate, 580–581
H
Hamilton, Alexander, 55
HealthSouth Corporation executives, 
indictment, 144
Hedge, defined, 334
Hedging, defined, 144
Hedging cash flows, 159–160
High crimes and misdemeanors, 172
High employment, 104
High frequency trading (HFT), defined, 322
High-tech IPOs, share price performance, 
305
f
High-yield bonds (junk bonds), defined, 
213–214, 259
Historical annual returns, examination, 347–348
Historical international price movements, 
207–208
Historical return, 343–345. 
See also
Assets
Holding period returns, 295–296
Home country accounting standards, U.S. 
GAAP (differences), 390
t
Home currency (HC), percentage change 
(calculation), 137
Home Mortgage Disclosure Act, 84
Home mortgage loans, combination, 22
Home mortgages, 203
Home mortgages, interest rates, 203
Horizon risk premium, 282
Horizon spreads (time spreads), 282. 
See also
U.S. Treasury securities
Hot IPO markets, 310
House brokers (commission brokers), defined, 
315
Housing prices, peak, 143
Humphrey-Hawkins Act, 103
I
Identification stage, definition, 524
Illegal unethical behavior, examples, 10
Impeachment, 172
General Motors (GM)
balance sheet, 400
t
common stocks, classes, 267–268
profitability, 401
General partnership, liability risks, 387
Generation waves, 179
Germany, universal banking, 71–72
Glass-Steagall Act of 1933, 57, 313
defined, 52
Global bonds
defined, 260
market, 259–260
Global business, exchange rate risks, 
158–161
Global depository receipt (GDR), defined, 
327
Global monetary system, 131–133
Going public, cost, 308–311
Gold
certificates, issuance, 30
coins, production, 29
reserves, 169
standard
criticism, 132
defined, 132
usage, history, 131
Goods/services
direct exchange, absence, 151
imports, 168
net exports (NE), 167
nominal GDP, 38
prices, increase, 38
Goodwill, defined, 395
Google
capital project, 525
mission, 383
Gordon model (constant dividend growth 
model), defined, 286
Government
borrowing, impact, 196
ethical behavior, 106
funds, raises, 107
influence on economy, 107–109
loanable fund role, 196
organizations, 120
policy, impact, 524
securities, credit risk (absence), 281
spending, Congress increase, 111–112
unethical behavior, 106
Government expenditures (GE), defined, 167
Government National Mortgage Association 
(GNMA) (Ginnie Mae)
creation, 184
defined, 78
Government-sponsored enterprise (GSE), 78
Gramm-Leach-Bliley Act of 1999 (GLBA), 
58, 313
defined, 52
Great Depression
Banking Act of 1933, passage, 52
financial crises, impact, 132
in the 1930s, 7
Great Recession (2008–2009), 6
trends/events, impact, 22
U.S. central bank response, 77–78
U.S. entry, 104
Foreign exchange (FOREX)
crossrates, 137