Glossary of Stock Market
Numbers || A ||
B ||
C ||
D ||
E ||
F ||
G ||
H ||
I ||
J ||
K ||
L ||
M ||
N ||
O ||
P ||
Q ||
R ||
S ||
T ||
U ||
V ||
W ||
X ||
Y ||
Z
H
Haircut
The difference between prices at which a market maker can buy and sell a security.
High
The highest price that was paid for a security during a certain time period. This can be expressed daily, weekly, and monthly or for a 52-week period. For example, the high for the day can be 20, but the high for the year can be 50. It helps to know the price history of a security over a period of time as an additional support for current buy or sell decision.
Hot Stock
A stock whose price rises quickly the day it goes public. Let's say you buy a new offering at Rs.10. What would you do if, on the first day of listing on the exchange it is quoted at Rs.25? Sell, or wait for a further increase. The same old choice: should I sell now and make a profit or wait for a while in hope that the price will go up further?
Hypothecation
Pledging assets against a loan using properties such as securities as collateral for loan, but not transferring legal ownership to the lender - which does not mean that you will not lose your collateral if you default on repayment. With a little paper work, the lender can sell your collateral to realize his payments.
Hammering
The rapid and concentrated sale of a stock thought to be overvalued by the market.
Hedging
A practice of taking one market position to offset potential losses in another. For example using a futures a contract to reduce the impact of price fluctuations in a cash or physical market. Like when you may like to cover possible loss by also backing the horse for a place. In securities trading, since there is no win or place, you have to look for another investment avenue where the return is less but the risk is also correspondingly less. A hedger takes an equal and opposite position in the futures market to the one he holds in the equity market.
Hedge
Making an investment to reduce the risk of adverse price movements in an asset. Normally, a hedge consists of taking an offsetting position in a related security, such as a futures contract.
Hedge Fund
An aggressively managed portfolio of investments that uses advanced investment strategies such as leverage, long, short and derivative positions in both domestic and international markets with the goal of generating high returns.
Holding Period
In a long position, holding period refers to the time between an asset's purchase and its sale. In a short sale, the length of time for which the short position is held.
BACK || NEXT
Numbers || A ||
B ||
C ||
D ||
E ||
F ||
G ||
H ||
I ||
J ||
K ||
L ||
M ||
N ||
O ||
P ||
Q ||
R ||
S ||
T ||
U ||
V ||
W ||
X ||
Y ||
Z
