|Guaranteed investment contract (GIC)|
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Definition of Guaranteed investment contract (GIC)
Guaranteed investment contract (GIC)
A pure investment product in which a life company agrees, for a
A guaranteed investment contract purchased with a single (one-shot) premium. Related:
Futures contracts, such as stock index futures, that settle for cash, not involving
Similar to equipment trust certificates except that the lender is either the
A term of reference describing a unit of trading for a financial or commodity future. Also, the actual
The month in which futures contracts may be satisfied by making or accepting a delivery.
Automatic reinvestment of shareholder dividends in more shares of a
The return one can expect to earn on an investment. See: capital asset
A guaranteed investment contract where the credit rating is tied to some variable
The acquisition abroad of physical assets such as plant and equipment, with
A cash market transaction in which delivery of the commodity is deferred until after the
In Eurocurrencies, a contract under which a deposit of fixed maturity is agreed to
The options to identify additional, more valuable investment opportunities
Agreement to buy or sell a set number of shares of a specific stock in a designated future
A constant, set by an exchange, which when multiplied by the futures price gives
First issued by Freddie Mac in 1975, GMCs, like PCs, represent
Guaranteed insurance contract
A contract promising a stated nominal interest rate over some specific time
A contract that obligates a purchaser of a project's output to make cash
Related: financial analysts
Financial intermediaries who perform a variety of services, including aiding in the sale of
Decisions concerning the asset side of a firm's balance sheet, such as the decision to
Investment grade bonds
A bond that is assigned a rating in the top four categories by commercial credit
The revenue from a portfolio of invested assets.
Also called a portfolio manager and money manager, the individual who manages a
Investment product line (IPML)
The line of required returns for investment projects as a function of beta
Investment tax credit
Proportion of new capital investment that can be used to reduce a company's tax bill
A closed-end fund regulated by the investment Company Act of 1940. These funds have a
As a discipline, the study of financial securities, such as stocks and bonds, from the investor's
investments that a regulated entity is permitted to make under the rules and regulations
Magic of diversification
The effective reduction of risk (variance) of a portfolio, achieved without reduction
Most distant futures contract
When several futures contracts are considered, the contract settling last.
Mutually exclusive investment decisions
investment decisions in which the acceptance of a project
Nearby futures contract
When several futures contracts are considered, the contract with the closest
Gross, or total, investment minus depreciation.
Net present value of future investments
The present value of the total sum of NPVs expected to result from
Next futures contract
The contract settling immediately after the nearby futures contract.
Nexus (of contracts)
A set or collection of something.
contracts which have been bought or sold without the transaction having been completed by
The contract that balances the three types of agency costs (contracting, monitoring, and
A contract that, in exchange for the option price, gives the option buyer the right, but not
Options contract multiple
A constant, set at $100, which when multiplied by the cash index value gives the
A guaranteed investment contract where the policyholder is not guaranteed a crediting
Passive investment strategy
See: passive management.
Passive investment management
Buying a well-diversified portfolio to represent a broad-based market
The rate at which an investor assumes interest payments made on a debt security can be
The risk that proceeds received in the future will have to be reinvested at a lower potential
REIT (real estate investment trust)
Real estate investment trust, which is similar to a closed-end mutual
REMIC (real estate mortgage investment conduit)
A pass-through tax entity that can hold mortgages
Return on investment (ROI)
Generally, book income as a proportion of net book value.
Set of contracts perspective
View of corporation as a set of contracting relationships, among individuals
Short-term investment services
Services that assist firms in making short-term investments.
A contract that obligates the purchaser to take any product that is offered to it (and pay
Turnkey construction contract
A type of construction contract under which the construction firm is
The mirror image of the asset substitution problem, wherein stockholders refuse
Unit investment trust
Money invested in a portfolio whose composition is fixed for the life of the fund.
A guaranteed investment contract purchased with deposits over some future designated
A portfolio of zero net value established by buying and shorting component
RETURN ON INVESTMENT (ROI)
In its most basic form, the rate of return equals net income divided by the amount of money invested. It can be applied to a particular product or piece of equipment, or to a business as a whole.
A division or unit of an organization that is responsible for achieving an adequate return on
Return on investment (ROI)
The net profit after tax as a percentage of the shareholders’ investment in the business.
Strategic management accounting
The provision and analysis of management accounting data about a business and its competitors, which is of use in the development and monitoring of strategy (Simmonds).
capital investment analysis
Refers to various techniques and procedures
return on investment (ROI)
A very general concept that refers to some
The commitment of funds (capital) in anticipation of an increased
an external party that has been granted an outsourcing contract to produce a part or component for an entity
an external party that has been granted an
a contract in which the customer agrees
a responsibility center in which the manager
a judgment about which assets will be
the process of gathering information
an assumption made about the rates of return that will be earned by intermediate cash flows from a capital project; NPV and PI assume reinvestment at the discount rate; IRR assumes reinvestment at the IRR
return on investment
a ratio that relates income generated
an agreement between two or more firms
the process of developing a statement of
strategic resource management
organizational planning for the deployment of resources to create value for customers and shareholders; key varibles in the process include the management of information and the management of change in response to threats and opportunities
an approach to personnel management
Agreement to buy or sell an asset in the future at an agreed price.
Exchange-traded promise to buy or sell an asset in the future at a prespecified price.
Bonds rated Baa or above by Moody’s or BBB or above by Standard & Poor’s.
A contract in which the seller agrees to provide something to a buyer at a specified future date at an agreed price.
An unwritten understanding between two groups, such as an understanding between an employer and employees that employees will receive a stable wage despite business cycle activity.
Middleman between a corporation issuing new securities and the public. The middleman buys the securities issue outright and then resells it to customers. Also called an underwriter.
Expenditures on capital goods including new housing. Financial ''investments" and sales of existing assets are not included.
Investment Tax Credit
A reduction in taxes offered to firms to induce them to increase investment spending.
investment spending minus depreciation.
Contract Work Hours and Safety Standards Act
A federal Act requiring federal contractors to pay overtime for hours worked exceeding 40 per week.
McNamara-O'Hara Service Contract Act of 1965
A federal Act requiring federal contractors to pay those employees working on a federal contract at
Walsh-Healey Public Contracts Act of 1936
A federal Act that forces government contractors to comply with the government’s minimum wage and hour rules.
A contract accounting method that recognizes contract revenue
Method of accounting for sales or service agreements where completion
A point in the development of software when it is determined that
Business Expansion Investment
The use of capital to create more money through the addition of fixed assets or through income producing vehicles.
Money used to purchase fixed assets for a business, such as land, buildings, or machinery. Also, money invested in a business on the understanding that it will be used to purchase permanent assets rather than to cover day-to-day operating expenses.
A formal written statement of the rights and obligations of each party to a transaction.
guaranteed investment certificate (GIC)
A gic is an investment that gives you a guaranteed rate of return over a fixed period of time, usually between 30 days and 5 years. gics are available from banks, trust companies, and other financial institutions.
qualified investments (Canada)
Qualified investments is the term used for investments that can be held in an RSP. These investments generally include:
Regular Investment Plan (RIP)
A plan under which you may make regular deposits of the same amount to your Mutual Funds account once a month, once every 2 weeks, or once a week. You can also make regular deposits up to four times a month on any dates you choose.
Through equity investment, investors gain part ownership of the corporation. The primary type of equity investment is corporate stock.
Guaranteed Interest Annuity (GIA)
Interest bearing investment with fixed rate and term.
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