Glossary of Investment Terms (G)

Gearing
A measure of indebtedness, i.e. the extent of borrowing as against the equity held by a person or company in an asset. See also Leverage.

Gift
Is a transfer of goods or property to another party. There are limits to the amount of gifts you can make without any tax liability - professional advice should be taken if you are unsure.

Gilt
A loan to the government usually with a fixed rate of interest and usually over a specified period of time. The original nominal amount is usually repaid at the end of the loan period

Gilt Edged
Low risk investment with high security - backed by a strong government.

Greenback
A colloquial term for the US dollar.

Gross
A figure quoted before deductions, e.g. tax, etc.

Gross Domestic Product (GDP)
A measurement of the aggregate goods produced and services provided within an economy over a year and excluding income earned outside the country. Considered one of the main yardsticks of the health and vitality of an economy. See also Gross National Product.

Gross Interest
The amount of interest you receive before any income tax has been paid.

Gross National Product
An economic statistic which includes GDP plus any income earned by residents from their overseas investments, minus income earned within the domestic economy by overseas residents. See also Gross Domestic Product.

Group of Seven (G7)
The seven major capitalist powers: Canada, France, Germany, Italy, Japan, UK and US.

Growth Investor
An investor who seeks capital gain from expected further growth in company earnings.

Growth Stocks
Stocks whose earnings have grown at an above-average rate over a number of years and which are expected to continue to grow at a high rate for some time to come.

Guaranteed Minimum Pension
A Guaranteed Pension amount paid, as a condition of contracting out of SERPS under a Final Salary Scheme up to and including 5 April 1997 from which point different rules apply. Professional advice should be taken if you are unsure of the rules.