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Group of Seven (G-7) What the G-7 is The Group of Seven (G-7) is an informal forum of seven advanced economies that meets to discuss and coordinate responses to global economic, financial, and political challenges. It is non‑legislative—its statements and commitments depend on voluntary implementation by member governments. Explore More Resources › Read more Government…

Group of 3 (G-3) Overview The Group of 3 (G-3) was a free trade agreement between Mexico, Colombia and Venezuela that began in 1995. It covered trade liberalization across goods and services, intellectual property rights, public-sector investment rules, and measures to ease trade restrictions. The pact aimed to deepen regional economic integration and expand market…

Ground Lease: Definition and Overview A ground lease (or land lease) is a long-term agreement in which a landowner leases land to a tenant who has the right to develop and use the property during the lease term. At the end of the lease, ownership of the land and any improvements—buildings, fixtures, and other structures—reverts…

Gross Yield: Meaning, How It Works, and Examples Definition Gross yield is the return on an investment before deducting taxes, fees, and operating expenses. It’s expressed as a percentage and is calculated by dividing the investment’s annual pre-expense income by its current price: Gross yield = (Annual income before taxes and expenses / Current price)…

Gross Value Added (GVA) Gross Value Added (GVA) measures the economic contribution of a producer, industry, sector, or region to an economy. It represents the value of goods and services produced minus the cost of inputs and intermediate consumption used in production. GVA is closely related to GDP and is used to adjust GDP for…

Gross-Up What is a gross-up? A gross-up is an extra payment made to cover the income taxes owed on a specific payment so the recipient receives a targeted net amount. Employers commonly use gross-ups for one-time cash benefits such as bonuses, severance, relocation reimbursements, and certain executive payments. How it works Employer determines the net…

Gross Working Capital Gross working capital is the total value of a company’s current assets — assets expected to convert to cash within a year. It represents the gross amount of short-term resources a company owns but does not account for short-term obligations. To assess liquidity and the ability to meet near-term obligations, gross working…

Gross Spread — What it Is and How It Works The gross spread (also called gross underwriting spread or simply the spread) is the difference between the price an issuing company receives from underwriters in an initial public offering (IPO) and the price at which those shares are sold to the public. It represents the…

Gross Sales What it is Gross sales is the total amount of sales a company records before any deductions. It sums all sales invoices or revenue transactions without subtracting returns, discounts, or allowances. Gross sales shows the scale of sales activity but not the company’s true revenue after customer adjustments or operating costs. Formula Gross…

Gross Receipts Overview Gross receipts are the total amount of money and the fair market value of property or services a business receives, before any deductions for expenses, cost of goods sold, or adjustments. They include operating and non-operating income and are used by some states and localities as the basis for business taxation instead…

Gross Rate of Return The gross rate of return is the total return on an investment before deducting fees, commissions, taxes, or other expenses. It typically includes capital gains and any income (dividends or interest) received over a specified period (e.g., month, quarter, year). Key takeaways Gross rate of return = return before expenses, fees,…

Gross Profit Margin What it is Gross profit margin measures the percentage of revenue that remains after subtracting the direct costs of producing goods or services (cost of goods sold, COGS). It shows how efficiently a company turns sales into gross profit before accounting for operating expenses, interest, and taxes. Typical margins vary widely by…

Gross Profit Gross profit is a company’s revenue minus the direct costs of producing the goods or services sold (cost of goods sold, or COGS). It shows how much money a company earns from its core production activities before accounting for operating expenses, taxes, interest, and other non-production costs. Key formulae Gross profit = Revenue…

Gross Processing Margin (GPM) Gross Processing Margin (GPM) is the difference between the cost of a raw commodity and the revenue generated when that commodity is sold as a finished product. It measures the spread between input costs and output prices and is driven primarily by supply and demand dynamics across the value chain. Why…

Gross Net Written Premium Income (GNWPI) Gross net written premium income (GNWPI) is the dollar amount of an insurer’s written premiums that serves as the base for calculating how much is owed to a reinsurer. It reflects the premiums the ceding insurer reports (not receipts) after certain deductions, and it is the figure to which…

Gross National Product (GNP) Deflator The GNP deflator is an index that measures the level of prices of all final goods and services produced by a country’s residents (domestically and abroad) in a given period. It converts nominal GNP into real GNP by removing the effects of price changes, providing a measure of inflation relevant…

Gross National Product (GNP) Definition Gross National Product (GNP) measures the total market value of all goods and services produced by the residents (nationals) of a country, regardless of whether production occurs domestically or abroad. It excludes income earned within the country by foreign residents. How GNP Is Calculated GNP can be derived from GDP…

Gross National Income (GNI) Gross National Income (GNI) measures the total income earned by a nation’s residents and businesses, including income earned abroad. It combines domestic production with net income from international sources to give a broader picture of national wealth than GDP alone. What GNI includes Domestic output captured by Gross Domestic Product (GDP)…

Gross National Happiness (GNH) What is Gross National Happiness? Gross National Happiness (GNH) is a holistic measure of a nation’s progress that prioritizes the well‑being and happiness of citizens over purely economic metrics like GDP. Originating in Bhutan in the 1970s, GNH informs public policy by balancing economic, social, cultural and environmental factors. Explore More…

Gross Merchandise Value (GMV): Definition, Calculation, and Analysis What is GMV? Gross Merchandise Value (GMV), also called gross merchandise volume, is the total dollar value of goods sold through an online marketplace or e-commerce platform over a given period. It measures the scale of transactions facilitated by a platform but does not account for fees,…

Gross Margin Return on Investment (GMROI) GMROI (also called GMROII — Gross Margin Return on Inventory Investment) measures how effectively a retailer turns inventory into gross profit. It shows the dollars of gross profit earned for every dollar invested in inventory. Why GMROI matters Indicates inventory profitability and efficiency. Helps compare performance across stores, categories,…

Gross margin — definition and purpose Gross margin (or gross profit margin) is the percentage of revenue a company retains after covering the direct costs of producing its goods or services. It measures how efficiently a business converts sales into gross profit before accounting for operating expenses, interest, and taxes. Key points: * Shows the…

Gross Leverage Ratio The gross leverage ratio measures an insurance company’s exposure to underwriting risk and to the solvency of its reinsurance partners. It provides a first-pass estimate of how much stress the insurer could face from pricing or estimation errors and from reinsurance counterparty failure. Definition and formula Gross leverage can be expressed in…

Gross Lease Key takeaways * A gross lease charges a tenant a single, fixed rent that covers occupancy plus most operating expenses (taxes, insurance, utilities). * Common in commercial properties (offices, retail); simpler budgeting for tenants but often higher rent. * Two main variants: modified gross lease and fully service (full-service) lease. * Opposite of…

Gross Interest: What It Is and How It Works Definition Gross interest is the headline annual interest rate paid on an investment, loan, or deposit before taxes, fees, and other charges are deducted. It is typically expressed as a percentage and is the rate most often quoted for bonds, certificates of deposit (CDs), savings accounts,…

Gross-Income Test: What It Means and How It Works The gross-income test is one of the criteria used to determine whether someone can be claimed as a dependent for U.S. federal tax purposes. It limits how much income a potential dependent may earn in a year in order to qualify as a dependent (typically as…

Gross Income Multiplier (GIM): Definition and Use The gross income multiplier (GIM) is a simple valuation metric used to estimate the value of an income-producing property. It is calculated by dividing a property’s sale price by its gross annual income. Investors use GIM as a quick screening tool to judge whether an asking price seems…

Gross Income Gross income is the total amount of earnings received before any taxes, deductions, or other adjustments. For individuals, it’s often shown as gross pay on a paycheck. For businesses, gross income (also called gross profit or gross margin) is revenue minus the direct costs of producing goods or services. Definition — Individual vs….

Gross Exposure: Definition, How It Works, and Example Calculation What is gross exposure? Gross exposure is the total value of a fund’s positions, counting both long and short holdings. It can be expressed in dollars or as a percentage of a fund’s capital. Gross exposure indicates the total amount at risk in the market—higher gross…

Gross Expense Ratio (GER) What it is The gross expense ratio (GER) is the percentage of a fund’s assets used to cover its operating costs. It reflects the total annual expenses charged by a mutual fund or ETF before any fee waivers, reimbursements, or recoupments are applied. Key points GER includes management fees, administrative costs,…

Gross Estate: Definition, How It Works, and Why It Matters What is a gross estate? A gross estate is the total monetary value of everything a person owned or had an interest in at the time of their death. That includes real estate, bank accounts, investments, vehicles, business interests, personal property (jewelry, art, collectibles), and…

Gross Earnings: Definition, Examples, and How It Differs from Net Income Gross earnings is the total income earned over a period before certain deductions. The meaning depends on context — for individuals it’s pre-deduction pay; for businesses it typically refers to gross profit after subtracting cost of goods sold (COGS) from revenue. Gross earnings for…

Gross Domestic Product (GDP) What is GDP? Gross Domestic Product (GDP) measures the total market value of all final goods and services produced within a country’s borders over a specified period. It serves as a broad indicator of economic activity and the size of an economy. What GDP Includes GDP is the sum of: *…

Gross Domestic Income (GDI) What is GDI? Gross Domestic Income (GDI) measures the total income earned by all sectors of an economy for producing goods and services in a given period. That includes wages and salaries, business profits, interest and rental income, and taxes (net of production and import subsidies), plus statistical adjustments. GDI is…

Gross Dividends: Meaning and How They Work Gross dividends are the total dividend payments an investor receives before any taxes, fees, or expenses are deducted. For tax and reporting purposes, gross dividends typically include: * Ordinary dividends * Capital gains distributions * Nontaxable distributions They are conceptually similar to gross income: the full amount received…