Guaranteed Investment Contract (GIC)

Business / Taxes / Guaranteed Investment Contract (GIC): A guaranteed investment contract, or GIC (pronounced gick), promises to preserve your principal and to provide a fixed rate of return when you begin to withdraw from the contract, typically after you retire. You can invest in a GIC through a salary reduction plan, such as a 401(k) or 403(b) sponsored by your employer, provided that investment option is offered. Because of their fixed rates, GICs are vulnerable to inflation. And you may have to pay a penalty if you decide to change from a GIC to a different investment. Insurance companies that offer GICs assume the risk that the rate they earn on their investments will outperform the rates they've guaranteed on the GICs.

Other Words for Contract

Contract Adjective Synonyms: agreement, understanding, deal, bargain, arrangement, pact, commitment, obligation, compact
Contract Verb Synonyms: catch, acquire, get, come down with, develop, become infected with, go down with
Contract Noun Synonyms: engage, agree, promise, covenant, undertake
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Net Investment

Business / Finance / Net Investment: Gross, or total, investment minus depreciation. MORE

Nearby Futures Contract

Business / Finance / Nearby Futures Contract: When several futures contracts are considered, the contract with the closest settlement date is called the nearby futures contract. The next (or the 'next out') futures contract is the one that settle MORE

Net Investment Income Per Share

Business / Finance / Net Investment Income Per Share: Income received by an investment company from dividends and interest on investments less administrative expenses, divided by the number of outstanding shares. MORE

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