Economy and Business Terms - Charlie, your teacher of English
In order for frustration to be used as a defense for nonperformance, the value of the anticipated
counter performance must have been substantially destroyed and the frustrating occurrence must
have been beyond the contemplation of the parties at the time the agreement was made.
Goals: They are what a person or institution seeks to gain from an investment. Goals vary from
investor to investor and can even change for the same investor over time. For example, a person
may have the goal to extract a high return from her investments when she is young in order to
finance a certain lifestyle; this person is likely to invest in high risk securities and ventures. Over
time, however, this person may be concerned about protecting savings for retirement. As a result,
the goals may shift and the person may invest primarily in bonds and blue-chip stocks instead.
Goals influence one's investment philosophy and strategy.
Gold: A particularly valuable precious metal. Gold is an element with the atomic number 79. It is
used for jewelry, electronics and for other purposes. Historically, gold was used in many cultures as
the basis for currency, but this is no longer the case. Investments in gold are often used as a hedge
against inflation because it tends to maintain its value over time.
Gross Domestic Product (GDP): Gross domestic product (GDP) is the monetary value of all the
finished goods and services produced within a country's borders in a specific time period. Though
GDP is usually calculated on an annual basis, it can be calculated on a quarterly basis as well. GDP
includes all private and public consumption, government outlays, investments and exports minus
imports that occur within a defined territory. Put simply, GDP is a broad measurement of a nation’s
overall economic activity.
Gross National Product (GNP): Gross national product (GNP) is an estimate of total value of all
the final products and services produced in a given period by the means of production owned by a
country's residents. GNP is commonly calculated by taking the sum of personal consumption
expenditures, private domestic investment, government expenditure, net exports, and any income
earned by residents from overseas investments, minus income earned within the domestic economy
by foreign residents. Net exports represent the difference between what a country exports minus
any imports of goods and services.
Growth: It is an increase in the value of an investment over time. Unlike investments that produce
income, those that are designed for growth don't necessarily provide you with a regular source of
cash. A growth company is more likely to reinvest its profits to build its business. If the company
prospers, however, its stock typically increases in value. Stocks, stock mutual funds, and real estate
may all be classified as growth investments, but some stocks and mutual funds emphasize growth
more than others.
Guarantor: It's a third party who promises to provide payment on a bond, loan, or other liability in
the event of default. While many guarantees apply to debt instruments, they may also be used for
day-to-day expenses. For example, a parent may be a guarantor for an adult child and promise to
pay rent to a rental agency if the adult child does not do it. Banks often serve as guarantors on
behalf of certain clients, but, just as often, private parties serve as guarantors and promise payment
on private loans. Guarantors reduce the risk to loans and liabilities, and usually improve the credit
agency ratings of bonds.16