Ginnie Mae®: see Government National Mortgage Association.
Global Depositary Receipt (GDR): A negotiable certificate held in the bank of one country representing a specific number of shares of a stock traded on an exchange of another country. While American Depositary Receipts allow international companies to offer shares to U.S. citizens, GDRs allow companies in Europe, Asia, the United States and Latin America to offer shares in markets around the world. Also called European Depositary Receipt.
global fund: a mutual fund that invests in stocks or bonds throughout the world, including the United States (an international fund, on the other hand, invests only outside the U.S.). American Funds offers six global funds: New Perspective Fund®, New World Fund®, SMALLCAP World Fund®, Capital World Growth and Income Fund®, American Funds Global Balanced FundSM and Capital World Bond Fund®.
Government National Mortgage Association (GNMA): a government-owned agency, nicknamed Ginnie Mae, that guarantees certain mortgage-backed securities backed by federally insured and guaranteed loans. Ginnie Mae does not buy or sell loans or issue mortgage-backed securities. Rather, Ginnie Mae guarantees the timely payment of interest and principal payments on qualifying securities. Such payments are backed by the full faith and credit of the U.S. government.
gross domestic product (GDP): the value of all goods and services produced nationwide. The GDP includes consumer and government purchases, private domestic investment, and net exports of goods and services. Inflation-adjusted GDP, or real GDP, is frequently used to measure economic growth and trends in the domestic economy.
growth fund: a mutual fund that seeks to provide shareholders with growth of capital by investing in companies with a history of rapidly growing earnings and generally higher price-to-earnings ratios. Growth funds are more volatile than income or money market funds, rising faster in bull markets and dropping more sharply in bear markets. See also growth stock. American Funds offers seven growth funds: AMCAP Fund®, EuroPacific Growth Fund®, The Growth Fund of America®, The New Economy Fund®, New Perspective Fund, New World Fund and SMALLCAP World Fund.
growth-and-income fund: a mutual fund that seeks to provide investors with growth of capital, as well as current income. These funds invest mainly in the common stock of companies with a history of solid growth and a record of consistent dividend payments. American Funds offers seven growth-and-income funds: American Funds Developing World Growth and Income FundSM, American Mutual Fund®, Capital World Growth and Income Fund, Fundamental InvestorsSM, International Growth and Income FundSM, The Investment Company of America® and Washington Mutual Investors FundSM.
growth investing: an investment style that emphasizes stocks with strong earnings and/or revenue growth or growth potential. Different from value investing, which favors buying stocks with lower price-to-earnings ratios and relatively high dividend yields, such as cyclical companies and mature industries.
growth stock: a stock that has exhibited above-average gains in earnings and is expected to maintain high levels of profit growth. Over the long run, growth stocks tend to outperform other stocks such as blue chips, though they are also more volatile since they typically have high price-to-earnings ratios and pay few or no dividends. Growth stocks are often found in technology industries.