A B C D E F G H I J K L M
N O P Q R S T U V W X Y Z
                             
                             
G

Geographic Risk

The investment risk that occurs when all or a high percentage of an investor's assets are concentrated in one country or one region of the world.

Global Fund

A mutual fund that invests anywhere in the world, including the U.S., as opposed to an international fund that invests anywhere in the world except the U.S.

Globalization

The realization that most economies and securities markets impact each other so investors must take a global view when evaluating the performance potential of securities. For example, some U.S. headquartered companies derive the majority of their earnings from outside the U.S.

Government Bonds

Interest bearing obligations that are issued by the U.S. Treasury and considered the safest investment in the U. S. In theory, the U.S. government cannot go out of business.

Government National Mortgage Association (GNMA)

A federal agency that pools mortgages that are offered to investors. Proceeds of sales to investors are used to create additional mortgage funds.

Gross Domestic Product (GDP)

A broad measurement that calculates the economic output of goods and services by a country.

Group Rotation

The tendency of stocks in the same industry to perform similarly - group behavior. Money managers attempt to identify hot and cold groups and "rotate" money in and out of the groups.

Growth at a Reasonable Price

Describes a strategy for purchasing stocks at reasonable prices in relation to historical prices, P/Es, book value, dividends and multiples of cash flows. Investors reduce their exposure to risk by not overpaying for securities.

Growth Fund

A mutual fund that invests in growth stocks that have a history of outperforming other stocks in their industry groups.

Growth & Income Fund

A mutual fund that invests in stocks that have histories of higher performance and payment of consistent, increasing dividends.

Growth Stock

A stock of a company that has revenue and earnings that are growing faster than other companies in the same industry group. Growth companies reinvest earnings in the company to fuel faster, future growth and don't pay out earnings to investors in the form of dividends. Investors buy growth stocks for appreciation and not income.

Guaranteed Income Contract

An insurance company agrees to pay a stated rate of interest that produces a predetermined amount of money at a specified future date.

    

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