Hedged portfolio Portfolio that encompasses short position in call option and long position in stock to reduce risk to zero. The return generated equals the zero risk rate of interest. … [Read more...]
High-Yield Investment Program – HYIP
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High-Yield Investment Program - HYIP Investment fraud where extraordinarily high returns, for example over 100% returns, are promised on investment. These are Ponzi schemes, where the initiators aim to siphon off the money invested. … [Read more...]
Homogeneous
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Homogeneous That which demonstrates a homogenous characteristic or pattern to a high degree. … [Read more...]
Hot Money
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Hot Money The amount of funds that change hands across geographical borders as a result of differences in interest rate. These funds stop moving once the differential evens out. … [Read more...]
H-Shares
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H-Shares Shares of company incorporated in China, listed on Hong Kong Stock Exchange or other foreign exchanges. H-shares are denominated in Hong Kong dollars and trade on the Hong Kong exchange just as other equities trade. … [Read more...]
Haircut
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Haircut Difference or margin in the actual value of securities in the market and value as per assessment by the lender in a transaction. … [Read more...]
Handle
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Handle Price of an offer or bid represented in whole-dollar terms. The whole dollar portion of a dealer’s bid or quote. … [Read more...]
Hard Capital Rationing
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Hard Capital Rationing Rationing of capital that cannot be violated or modified under any circumstances. … [Read more...]
Hard Call Protection
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Hard Call Protection The period during which the issuer cannot redeem a callable bond. … [Read more...]
Hard Currency
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Hard Currency A currency that is freely convertible and that is not expected to decline in value in the immediate future term. … [Read more...]
Harmless Warrant
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Harmless Warrant A warrant allowing users to buy bonds only on surrender of an existing bond that comes with similar terms as the new one. … [Read more...]
Head & Shoulders
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Head & Shoulders Term used in technical analysis. A formation seen in charting when stock price touches a peak and falls, moves above the former peak and declines again and increases again to a lower level than the second peak and again falls. The shoulders are the first and third … [Read more...]
Headline Inflation
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Headline Inflation Indicator of inflation reported through the Consumer Price Index (CPI). This data is released every month by the Bureau of Labor Statistics. The CPI shows the cost incurred in purchasing a fixed basket of goods to demonstrate inflation. … [Read more...]
Hedge
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Hedge Risk reduction in an investment achieved by a transaction. … [Read more...]
Hedge Fund
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Hedge Fund Funds that use a number of different techniques to increase returns. Methods used may include using a valuation model to buy and short stocks. … [Read more...]
Hedge Ratio (Delta)
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Hedge Ratio (Delta) Comparison of portfolio volatility where the portfolio will be hedged and the return of hedging instrument’s volatility. … [Read more...]
Hedged Tender
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Hedged Tender Tender offer strategy wherein investors short sell some of the owned shares to protect against the risk of loss if the tender is rejected. … [Read more...]
Hedging
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Hedging Investment strategy that aims at reducing investment risk. Call and put options, futures contracts and short selling are all used for this purpose. A hedge may be used to protect existing profits or restrict portfolio volatility of a portfolio, by insulating against the … [Read more...]
Hedging Demands
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Hedging Demands A state where demand exists for securities for the purpose of hedging specific consumption risk sources. This demand is over and above that typically arising for mean-variance diversification. … [Read more...]
