Growth Stock A company’s common stock where the company has an option to invest funds to yield better earnings than the capital’s opportunity cost. … [Read more...]
Guaranteed Insurance Contract
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Guaranteed Insurance Contract Contract that includes a commitment to yield a specified nominal interest rate for a specific time period. … [Read more...]
Guaranteed Investment Contract (GIC)
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Guaranteed Investment Contract (GIC) Product offered by a life company as a pure investment instrument. The company undertakes to make principal amount payment for a given annual interest rate all through the investment term with all of it being paid on maturity. A single premium is … [Read more...]
Guarantor Program
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Guarantor Program Terminology used with Freddie Mac program. The aggregation with the aim of creating a qualifying pool. Carried out by a single issuer, generally an S&L. PCs under the Freddie Mac guarantee are subsequently issued. … [Read more...]
Guardian IRA
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Guardian IRA An IRA that is held on behalf of a minor or one who cannot handle finances owing to mental or physical disabilities. The legal guardian or parent holds the IRA in his/ her name. … [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...]
