What Is a Guaranteed Investment Contract (GIC)? A guaranteed investment contract (GIC) is a contract between an insurance company and an investor, typically a pension fund or an employer-sponsored retirement plan, such as a 401(k). The investor agrees to deposit a sum of money with the insurer for a specified period of time, and the
What Is Guaranteed Issue Life Insurance? Guaranteed issue life insurance, or guaranteed acceptance life insurance, is a type of whole life insurance policy that does not require you to answer health questions, undergo a medical exam, or allow an insurance company to review your medical and prescription records. You may also see it referred to
What Is the Guaranteed Minimum Pension (GMP)? The Guaranteed Minimum Pension is the minimum pension that a United Kingdom occupational pension scheme must provide those public sector employees who were contracted out of the State Earnings Related Pension Scheme (SERPS), between April 6, 1978, and April 5, 1997. Key Takeaways The Guaranteed Minimum Pension exists to
What Are Guaranteed Payments to Partners? Guaranteed payments to partners are payments meant to compensate a partner for services rendered or use of capital. Essentially, they are the equivalent of a salary for partners or limited liability company (LLC) members. These kinds of payments eliminate the risk of a partner making personal contributions of time
What Is a Guardian? A guardian is an individual to whom a judge or a will gives the legal responsibility to care for a child or an adult who does not have the capacity for self-care. The appointed individual is often responsible for both the care of the ward (the child or incapable adult) and
What Is Guerrilla Marketing? Guerrilla marketing is a marketing tactic in which a company uses surprise and/or unconventional interactions in order to promote a product or service. Guerrilla marketing is different than traditional marketing in that it often relies on personal interaction, has a smaller budget, and focuses on smaller groups of promoters that are
What Is Gross Spread? The gross spread is the compensation that the underwriters of an initial public offering (IPO) receive. An IPO is the process of taking a private corporation public by issuing shares of stock. Gross spread is the difference between the underwriting price received by the issuing company and the actual price offered to
What Is a Gross-Up? A gross-up is an additional amount of money added to a payment to cover the income taxes the recipient will owe on the payment. The gross-up is most often seen in executive compensation plans. For example, a company may agree to pay an executive’s relocation expenses plus a gross-up to offset
What Is Gross Value Added (GVA)? Gross value added (GVA) is an economic productivity metric that measures the contribution of a corporate subsidiary, company, or municipality to an economy, producer, sector, or region. GVA provides a dollar value for the amount of goods and services that have been produced in a country, minus the cost of
What Is Gross Working Capital? Gross working capital is the sum of a company’s current assets (assets that are convertible to cash within a year or less). Gross working capital less current liabilities is equal to net working capital, or simply “working capital;” a more useful measure for balance sheet analysis. Key Takeaways Gross working
