person's totaltaxable income prior to adjustments. See: adjusted gross income. Gross estate The total value of a person's property and assets before accounting for debts, taxes, and liabilities. Gross income -A person's total income prior to exclusions and deductions. Gross interest Interest earned before taxes are deducted. Gross lease A type of property lease in which the lessor (owner of the property being leased) pays expenses associated with ownership such as damages, taxes, and insurance. Gross National Product (GNP) Measures and economy's total income. It is equal to G.D.P. plus the income abroad accruing to domestic residents minus income generated in domestic market accruing to non-residents. Gross parity Applies mainly to convertible securities and international equities. Antithesis of net parity. For the price of a convertible, including accrued interest. For the price of international security, including commissions, fees, stamp duty, and other transactioncosts, translated into U.S. dollar amounts. Gross profit Salesminus the cost of goods sold. Gross profit margin Gross profit divided by sales, which is equal to each sales dollar left over after paying for the cost of goods sold. Gross sales Totalsales calculated by summing all sales at invoice values, neglecting any adjustments such as customer discounts or returns. Gross spread The fraction of the gross proceeds of an underwrittensecuritiesoffering that is paid as compensation to the underwriters of the offering. Gross Weight The full weight (including goods and packaging) of shipment. Ground lease A lease of land, as opposed to a lease of a building. Group insurance Insurance coverage for a group, which can usually be obtained at a cheaper rate than insurance for an individual. Group of Eight (G-8) The G-7 countries plus Russia. Group of Five (G-5) The five leading countries (France, Germany, Japan, the U.K., and the U.S.) that meet periodically to achieve some cooperative effort on international economic issues. When currency issues are discussed, the monetary authorities of these nations hold the meeting. Group of Seven (G-7) The G-5 countries plus Canada and Italy. Group of Ten A group of the ten major industrialized countries whose mission is to create a more stable world economic trading environment through monetary and fiscal policies. The ten are Belgium, Canada, France, Germany, Italy, Japan, the Netherlands, Sweden, the United Kingdom, and the United States. Group rotation The tendency of stocks in one sector of the market to outperform and then underperform other industries, usually as a result of economic cycles or the conditions in a particular industry. Group rotation manager A top-down manager who deduces the phases of the business cycle and allocates assets accordingly. Group sales Blocksale (of large amounts) of securities to institutional investors. Group Universal Life Policy (GULP) Universal life insurance on a group basis. See: Group insurance. Growing Equity Mortgage (GEM) Mortgage with a fixed interest rate and payments that increase throughout the term of the mortgage. Growing perpetuity A constant stream of cash flows without end that is expected to rise indefinitely. Growth fund A mutual fund that invests primarily in stocks with a history of and future potential for capital gains. Growth