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Guaranteed Investment Contract - GIC

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Definition of 'Guaranteed Investment Contract - GIC'

Insurance contracts that guarantee the owner principal repayment and a fixed or floating interest rate for a predetermined period of time.
Investopedia Says

Investopedia explains 'Guaranteed Investment Contract - GIC'

Guaranteed investment contracts are typically issued by insurance companies and marketed to institutions that qualify for favorable tax status under federal laws. These products provide institutions with guaranteed returns.

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