Author: user

Guaranteed Minimum Income Benefit (GMIB) A Guaranteed Minimum Income Benefit (GMIB) is an optional rider attached to an annuity contract—most commonly a variable annuity—that guarantees the annuitant a minimum stream of income once the contract is annuitized. It protects against poor market performance by establishing a floor for future income payments. How GMIBs work GMIBs…

Guaranteed Minimum Accumulation Benefit (GMAB) What it is A Guaranteed Minimum Accumulation Benefit (GMAB) is an optional rider on a variable annuity that guarantees the annuitant a minimum contract value after a specified holding period—commonly the accumulation period, often around 10 years. It protects the annuity’s value from adverse market performance during that period. How…

Guaranteed Loan Key takeaways A guaranteed loan is one where a third party agrees to cover the debt if the borrower defaults. Guarantees reduce lender risk and enable borrowers who might not qualify otherwise to obtain credit. Common examples include government-backed mortgages, federal student loans, and payday loans (where the borrower’s paycheck effectively guarantees repayment)….

Guaranteed Lifetime Withdrawal Benefit (GLWB) A Guaranteed Lifetime Withdrawal Benefit (GLWB) is an optional rider for a variable annuity that guarantees a minimum lifetime income regardless of market losses. It creates a separate benefit base used to calculate guaranteed withdrawals and typically carries an additional annual fee. Key takeaways GLWBs protect against market declines by…

Guaranteed Issue Life Insurance Guaranteed issue life insurance (also called guaranteed acceptance) is a permanent life insurance policy that requires no medical exam and no health questions. It’s designed for people who cannot qualify for traditional, medically underwritten policies because of serious or terminal health conditions. The trade-offs are limited benefit amounts, higher premiums, and…

Guaranteed Investment Fund (GIF) What is a Guaranteed Investment Fund (GIF)? A Guaranteed Investment Fund (GIF) is an investment product sold by insurance companies that combines exposure to equities, bonds, or index funds with a promise that a predefined minimum value will be available at a specified future time (usually the initial investment amount). Some…

Guaranteed Investment Contract (GIC) Guaranteed investment contracts (GICs) are agreements between insurance companies and institutional investors—commonly pension plans and employer-sponsored retirement plans (such as 401(k)s)—that promise to return principal and pay a specified interest rate for a set term. They are designed to provide capital preservation and predictable income for risk‑averse investors, but they carry…

Guaranteed Investment Certificate (GIC) A guaranteed investment certificate (GIC) is a deposit-based savings product sold by Canadian banks, trust companies, and other financial institutions. It pays a fixed rate of interest for a set term and returns the investor’s principal at maturity, making it a low-risk choice for capital preservation and steady income. Key takeaways…

Guaranteed Death Benefit: What it Means and How It Works A guaranteed death benefit is a contract term that ensures a beneficiary receives a minimum payment if the annuitant or insured person dies before the contract begins paying benefits. It acts as a safety net during the accumulation phase of annuities or as an added…

Guaranteed Bond Overview A guaranteed bond is a debt security whose timely interest and principal payments are backed by a third party in case the original issuer defaults. Both municipal and corporate bonds can carry guarantees. The guarantor—such as an insurance company, bank, government authority, parent company, or fund—commits to make payments if the issuer…

Guarantee Fees: What They Are and How They Work A guarantee fee (often called a g‑fee) is a charge paid to the issuer or guarantor of a mortgage‑backed security (MBS) or other guaranteed asset. It compensates the guarantor for providing a credit guarantee and for the administrative work required to create, service, report on, and…

Guarantee Company: Definition and How It Works A guarantee company is a corporate structure commonly used in the United Kingdom and other jurisdictions for non-profit and membership organizations. It provides limited liability to its members without issuing shares or distributing profits. Key takeaways Organized to provide limited liability to members by setting a fixed, nominal…

Guanxi: What it Is, How It Works, and Why It Matters What is guanxi? Guanxi (guānxi, pronounced “gwan‑shee”) is a Chinese term that describes personal networks of relationships used to facilitate business and social exchange. It emphasizes trust, mutual obligation, and reciprocity: favors given create moral duties to return those favors. In practice, guanxi often…

S&P GSCI (S&P Goldman Sachs Commodity Index) — Overview The S&P GSCI is a broad, production-weighted benchmark that tracks the performance of the global commodities market using exchange-traded futures contracts. It is widely used as a gauge of commodity-price performance and as the basis for investable products that provide long-only exposure to commodities. What the…

Grunt Work: Meaning, Who Does It, and Why It Matters Definition Grunt work refers to routine, time-consuming, often menial tasks that lack prestige but are essential to an organization’s operations and decision-making. In finance, it commonly includes gathering and organizing large sets of market or company data, basic analysis, and preparing supporting materials used by…

Growth Stock: What It Is, Examples, vs. Value Stock What is a growth stock? A growth stock is a share in a company expected to increase sales and earnings faster than the market average. These companies typically reinvest profits to fund expansion rather than pay dividends, so investors seek returns mainly through capital appreciation. Explore…

Growth Rates: Definition, Formulas, and Applications Key takeaways * Growth rates express the percentage change of a variable over a specific period. * They can be positive (increase) or negative (decrease). * Common measures include simple growth rate and compound annual growth rate (CAGR). * Growth rates are used in economics, corporate performance, investing, and…

Growth Investing Growth investing is a strategy focused on capital appreciation: buying shares in companies expected to grow faster than their peers so their stock prices rise substantially over time. This approach prioritizes future earnings and market expansion over current income (dividends). It can deliver high returns but carries higher risk if growth fails to…

Growth Industry: Definition, Drivers, Characteristics, and Measurement What is a growth industry? A growth industry is an economic sector that expands at a faster-than-average rate compared with other sectors. These industries often arise from new technologies, shifting regulations, or changing consumer preferences that create demand for novel products and services. They typically attract heavy investment…

Growth Funds: Definition, Types, and Performance What is a growth fund? A growth fund is a mutual fund or exchange-traded fund (ETF) that seeks capital appreciation by investing in companies expected to grow faster than the market. These companies typically reinvest earnings into the business (expansion, acquisitions, research and development) rather than paying regular dividends….

Growth Curve What is a growth curve? A growth curve is a graph that shows how a quantity changes over time. Typically the x‑axis represents time and the y‑axis represents the quantity being tracked (population, sales, revenue, user count, etc.). Growth curves help visualize past trends and project future behavior. How to read and interpret…

Growth Company: Definition, Characteristics, and Examples Key takeaways A growth company generates earnings and cash flows that rise faster than the overall economy. Growth firms typically reinvest profits rather than pay dividends, prioritizing expansion, R&D, and market share. Investors buy growth stocks for share-price appreciation rather than dividend income. Growth stocks often trade at higher…

Growth at a Reasonable Price (GARP) Growth at a Reasonable Price (GARP) is an equity investing approach that blends elements of growth and value investing. It targets companies with above-average, sustainable earnings growth while avoiding those with excessively high valuations. The aim is to capture growth upside without paying speculative premiums. How GARP works Focus:…

Growth and Income Funds Definition A growth and income fund is a mutual fund or exchange-traded fund (ETF) that seeks both capital appreciation and current income. These funds typically hold a mix of equities (including dividend-paying stocks), bonds, and sometimes REITs or other income-producing securities to deliver total return from price gains plus dividends or…

Home Equity: What It Is and How It Works What is home equity? Home equity is the portion of a property’s market value that you truly own. Calculate it as: Equity = Current market value of the home − Outstanding liens (for example, mortgage balances) Explore More Resources › Read more Government Exam Guru ›…

Groupthink Groupthink is a social-psychological phenomenon in which a cohesive group prioritizes consensus and social harmony over critical analysis and independent judgment. Members downplay doubts, suppress dissenting opinions, or self-censor to avoid conflict, often producing flawed or risky decisions. Key takeaways Groupthink leads groups to overlook alternatives, ignore risks, and assume unanimity even when misgivings…

Groupon Groupon is an online marketplace and mobile app that connects consumers with discounted goods, services, events, and travel through coupons, prepaid deals, and cashback offers. Merchants list time-limited promotions to attract new customers; Groupon handles marketing and transaction processing and keeps a percentage of each sale. Key takeaways Launched as a collective-buying “daily deals”…

Group Universal Life Policy (GULP) What it is A group universal life policy is a type of permanent life insurance offered to a group—most commonly employees of a company—at lower per-person cost than an individual policy. It combines a death benefit with a cash-savings component that can grow over time. Key features Permanent (lifelong) coverage…

Understanding Group Term Life Insurance: Benefits, Costs, and Key Considerations Key takeaways Group term life insurance is a temporary, employer- or association-sponsored policy that often provides a basic amount of coverage at low or no cost to employees. Coverage is typically tied to salary (for example, one or more multiples of annual pay) and premiums…

Group Life Insurance Explained: Types, Benefits, and Drawbacks Key takeaways Group life insurance is employer- or organization-sponsored coverage that typically costs little or nothing to members and often requires no medical exam. Coverage is usually basic—fixed dollar amounts or a multiple of salary—and may end when you leave the group. You can often convert group…

Group Health Insurance: What It Is, How It Works, Benefits Key takeaways Group health insurance covers a defined group—typically employees or organization members—under one policy, lowering individual premiums by spreading risk across many people. Plans are purchased by the group (organizations or employers); individuals cannot buy these plans directly. Participation minimums (commonly around 70%) and…

Group of 20 (G-20) What the G-20 Is The Group of 20 (G-20) is an international forum of finance ministers and central bank governors from 19 major economies plus the European Union. Created in 1999, it promotes global economic growth, international trade, and the regulation of financial markets. The G-20 is a consultative forum rather…

Group of 11 (G-11): What it Means and How It Works What is the G-11? The Group of 11 (G-11) is a coalition of lower-middle-income countries formed to reduce members’ debt burdens and redirect resources toward economic development. Established on September 20, 2006, the initiative was conceived by King Abdullah II of Jordan as a…

Group of Ten (G10): Definition, Members, and Purpose Key takeaways * The Group of Ten (G10) is an informal group of 11 advanced economies that consult on international finance. * Members meet at least annually—typically finance ministers and central bank governors—to coordinate monetary and financial policies. * The G10’s work centers on exchange-rate and monetary…

Group of Eight (G-8) The Group of Eight (G-8) was an informal forum of the world’s largest advanced economies that met periodically to discuss international economic and political issues. Its original members were the United States, the United Kingdom, France, Germany, Italy, Japan, Canada, and Russia (which joined in 1997). After Russia’s suspension in 2014…