Government National Mortgage Association (Ginnie Mae) A wholly owned U.S. government corporation within the Department of Housing & Urban Development. Ginnie Mae guarantees the timely payment of principal and interest on securitiesissued by approved servicers that are collateralized by FHA-issued, VA-guaranteed, or Farmers Home Administration (FmHA)-guaranteed mortgages. Government obligations U.S. government-backed debt instruments, which are considered among the safest investments possible, including Treasury bonds, bills, and notes, and savings bonds. Government securities NegotiableU.S. Treasurysecurities. Government sponsored enterprises Privately owned, publiclychartered entities, such as the Student Loan Marketing Association, created by Congress to reduce the cost of capital for certain borrowing sectors of the economy including farmers, homeowners, and students. Governments U.S. government-issuedsecurities, such as Treasury bills, bonds, and notes, and savings bonds. Governments are considered among the safest investments available as they are backed by the U.S. government. Also used to refer to debtissues of federal agencies, which are not directly backed by the U.S. government. Grace period The time period stipulated in most loancontracts and insurance policies during which a late payment will not result in default or cancellation. Graduated call writing Selling covered calloptions at incrementally rising exercise prices, so that as the price of the underlyingstock rises and the options are exercised, the seller receives a higher average price than the original exercise price. Graduated lease A type of long-termlease whose payments are variable rather than fixed, and depend upon a benchmark rate, such as changes in the consumer price index. Graduated payment Repayment terms calling for gradual increases in the payments on a closed-end obligation. A graduated payment loan usually involves negative amortization. Graduated-payment mortgage (GPM) A type of stepped-payment loan in which the borrower's payments are initially lower than those on a comparable level-rate mortgage. The payments gradually increase over a predetermined period (usually 3, 5, or 7 years), and then are fixed at a level-pay schedule, which will be higher than the level-pay amortization of a level-pay mortgage originated at the same time. The difference between what the borrower actually pays and the amount required to fully amortize the mortgage is added to the unpaid principal balance. Graduated security A security that has moved from listing on an exchange of less prominence to one of more prominence. Graham and Dodd method of investing An investment strategy based on security analysis and identification. Investorsbuystocks with undervalued assetsspeculating that these assets will appreciate to their true value. Graham-Harvey Measure 1 Performance measure developed by John Graham and Campbell Harvey. The idea is to lever a fund's portfolio to exactly match the volatility of the S&P 500. The difference between the fund's levered return and the S&P 500 return is the performance measure. Graham-Harvey Measure 2 Performance measure developed by John Graham and Campbell Harvey. The idea is to lever the S&P 500 portfolio to exactly match the volatility of the fund. The difference between the fund's return and the levered S&P 500 return is the performance measure. Grandfathered activities Nonbank activities, some of which would normally not be permissible for bank holding companies and foregin banks in the