Terms starting with: G
Gearing
a) A measure of indebtedness, ie. the extent of borrowings as against the equity held by a person or company in an asset; b) The ability to increase exposure by investing in futures contracts without making the underlying cash available. B) The concept of borrowing money to fund business/personal operations. Often individuals will “gear” their investments. This means they are borrowing money to purchase assets that they believe will grow in value at a rate higher than the cost to borrow the money over time.
Geared Assets
Assets purchased with borrowed funds
Gross income
The total amount of income earned (from wages or a salary) before any deductions including tax.
Gross Domestic Product (GDP)
GDP is commonly used as an indicator of the economic health of a country. It represents the monetary value of all the finished goods and services produced by a country.
Gross domestic product (GDP)
The market value of final goods and services produced over time including the income of foreign corporations
Growth Assets
A general term for assets such as shares and property, which provide investment returns, (comprising both capital growth and income), which outperform inflation. Growth assets compare to debt securities such as fixed interest and/or cash investments.
Growth Fund
An investment portfolio which aims to achieve an above average rate of after-tax income and capital growth over the medium to longer term, while adopting a medium risk profile. A growth fund typically comprises a balanced portfolio of equities, fixed interest, property and cash.
Growth Investor
One who seeks capital gain from expected further growth in company earnings. Typically, growth investors care less about price/earnings ratios and other valuation measures and more about earnings growth.