Letter H Vocabulary Flashcards
A percentage discount applied to the market value of an asset being used as collateral.
Haircut
A stop order that will be executed at a set price without any slippage.
Hard Stop Order
A list of securities that are not available for borrowing, usually for short selling purposes.
Hard-to-Borrow List
A pooled investment fund that employs various strategies to achieve high returns for its investors.
Hedge Fund
An investment portfolio that uses various strategies to limit or reduce risk.
Hedged Portfolio
An investment strategy used to offset or reduce potential losses from another investment.
Hedging
An order that is to be executed at the opening of the market or not at all.
Held-at-Opening Order
The highest historical value of an investment portfolio, often used in performance fee calculations for fund managers.
High-Water Mark
A bond with a lower credit rating and higher risk but offers higher interest rates to attract investors.
High-Yield Bond
An instruction to keep a stock rather than buy or sell.
Hold Order
A company that owns the stock of other companies but doesn’t produce goods or services itself.
Holding Company
The duration of time an investment is held by an investor.
Holding Period
A loan based on the difference between a homeowner’s property value and the amount they owe on the mortgage.
Home Equity Loan
An options strategy involving the simultaneous purchase and sale of two options of the same type and expiration date but different strike prices.
Horizontal Spread
An attempt to acquire a company without the agreement of its management or board of directors.
Hostile Takeover
A newly issued stock or bond that is in high demand by investors.
Hot Issue
A notification from a brokerage to an investor requesting additional funds or securities to meet minimum margin requirements.
House Call
The rules set by a brokerage regarding margin accounts and the amount of equity an investor must maintain.
House Requirements
A financial instrument that combines features of both debt and equity securities.
Hybrid Security
The act of pledging assets as collateral for a loan without transferring title.
Hypothecation
