Glossary of Terms

The information presented here is not intended as financial, investment, tax or legal advice and is provided for educational purposes only.
G-20 (Group of Twenty)
Finance ministers and central bank governors from 20 industrialized and developing nations who meet regularly to discuss key global economic issues. G-20 members are Argentina, Australia, Brazil, Canada, China, the European Union, France, Germany, India, Indonesia, Italy, Japan, South Korea, Mexico, Russia, Saudi Arabia, South Africa, Turkey, the United Kingdom and the United States.
GAAP, or Generally Accepted Accounting Principals

A set of accounting conventions established by the Financial Accounting Standards Board, or FASB. Companies are required to file quarterly GAAP-based financial statements, and may supplement this information, if they wish, by providing separate pro forma results.

Also known as net income or net profits, net earnings are tom line, this is the profit a company realizes after all costs, expenses and taxes have been paid. It is calculated by subtracting business, depreciation, interest and tax costs from revenues. Also called net income or net profit.

General Obligation Bond
A general obligation bond is a common type of municipal bond in the United States that is secured by a state or local government's pledge to use legally available resources, including tax revenues, to repay bond holders.
Gift Tax
A federal and/or state tax levied on donors of gifts in excess of certain limits.
Global Funds
Mutual funds that invest primarily in securities of foreign (non-U.S.) companies but may also invest in securities of U.S. companies.
An intangible asset such as a brand or a reputation. In an acquisition, the amount by which the purchase price exceeds the tangible assets of the acquired company is considered goodwill, and is listed on the balance sheet of the acquirer.
Government National Mortgage Association (Ginnie Mae)
A government-owned corporation within the U.S. Department of Housing and Urban Development. Ginnie Mae guarantees investors the full and timely payment of principal and interest on their mortgage backed securities (MBS) — mainly MBS issued by the Federal Housing Administration and the U.S. Department of Veterans Affairs (FHA and VA loans). Ginnie Mae securities are the only MBS backed by the full faith and credit of the U.S. government.
Gross Amount
The dollar value of a purchase or redemption order before deducting any commissions or fees.
Gross Domestic Product (GDP)
The value of all goods and services produced in the United States, estimated quarterly by the U.S. Bureau of Economic Analysis. It is the broadest measure of overall economic activity and the primary indicator of economic growth or contraction.
Gross Income
Revenues minus the cost of sales. Also called gross income.


Gross Margin
The sum of gross income over the past four quarters divided by the sum of revenues over the past four quarters. The result is shown as a percentage. Gross margin shows a company's profitability, taking into consideration only the costs associated with producing its goods or services.
Growth Funds
Mutual funds that invest in stocks of companies with high growth rates, whose stocks are expected to increase in value more rapidly than the overall market. Growth stocks may be more volatile than other investment styles because they are more sensitive to investor perceptions of an issuing company's growth potential.
Growth Investing
A style of equity investing that emphasizes stock with above-average price-to-book ratios and sales and earnings growth, but below-average dividend yields.
Growth and Income Funds
Mutual funds that invest primarily in common stocks of well-established corporations whose stock has the potential for share-price appreciation and the potential for continued dividend payments.
Guaranteed Investment Contract (GIC)
A group annuity contract that pays a specified rate of return for a specific period of time, offers book value accounting, typically pays benefits to plan participants, and provides annuities upon request. These contracts are also known as Guaranteed Insurance Contracts or Guaranteed Interest Contracts.