Menu

H


Hedge
Strategy used to offset investment risk, typically from adverse movements in interest rates or securities prices. A perfect hedge is one eliminating the possibility of future gain or loss.

Read more on Wikipedia

Hedge Fund
Private investment partnership or an off-shore investment corporation in which the general partner has made substantial personal investment, and whose offering memorandum allows for the fund to take both long and short positions, use leverage and derivatives.


High-yield bond

Bonds issued by lower-rated corporations, sovereign countries and other entities rated Ba or BB or below and offering a higher yield than more creditworthy securities, sometimes known as junk bonds.


Holding Company

A company that owns enough voting stock in another firm to control management and operations by influencing or electing its board of directors. Also called parent company.


Hostile Takeover
Takeover of a company against the wishes of current management and the board of directors.


I

Index
Statistical composite that measures changes in the economy or in financial markets, often expressed in percentage changes from a base period.


Initial Public Offering (IPO)

A corporation's first offering of stock to the public.

Read more on Wikipedia

Insider Trading
Practice of buying and selling shares in a company's stock by that company's management or board of directors, or by a holder of more than 10% of the company's shares.


Intangible Asset

Right or nonphysical resource that is presumed to represent an advantage to the firm's position in the marketplace. Such assets include copyrights, patents, trademarks, goodwill, and franchises.


Interest
Compensation paid or to be paid for the use of money. Interest is generally expressed as an annual percentage rate.


Internal Rate of Return (IRR)

Discount rate at which the present value of the future cash flows of an investment equal the cost of the investment.

Read more on Wikipedia

Investment-grade
Bonds considered suitable for preservation of invested capital by the rating agencies and rated Baa or BBB or above.


Issuer

An entity which issues and is obligated to pay principal and interest on securities.