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Transgenic animals are basically the animals who have had their DNA manipulated by addition of foreign gene through vectors.
This is mostly for the following purposes:
95% of the transgenic animals are MICE. Others include pigs, rabbits, sheep, cow, rats fish etc.
A genetically modified organism (GMO) is an organism (plant, animal, bacteria or virus) whose genetic makeup has been modified for a particular purpose, in the laboratory using scientific methods like recombinant DNA technology.
They are also known as Transgenic organisms (if the gene from one organism has been transferred to a different organism of different species).
For example, a plant can be modified to carry an additional gene found in another living thing (such as a bacteria) to protect itself against insect pests.
Example of GMOs are- Bt cotton, Bt brinjal, Bt Corn, Flavr Savr tomato, GloFish, AquaAvantage salmon etc.