Hedge/Hedging
A strategy that is used as a buffer against investment risks. Its aim is to eliminate the possibility of future gains or losses. Some ways, through which hedging can be achieved are put options, the purchasing of tangible assets whose values stay above rising inflation, and the buying or selling of futures.
Hedge Fund
A private investment partnership, owned by wealthy individuals and institutions, which is allowed to use aggressive strategies that are unavailable to mutual funds, including short selling, leverage, program trading, swaps, arbitrage and derivatives. Since they are restricted by law to less than 100 investors, the minimum hedge-fund investment is typically $1 million.
Heir
An individual who inherits some or all of the estate of a deceased person according to a will or through direct line descent of a relative.
Home-Equity Loan
A type of loan offered by banks or mortgage lenders in which the house’s equity (interest in the property) is used as collateral for the loan. It allows homeowners to use this equity and is useful to help finance major expenses. Home equity loans allow an individual to pay back the loan with a relatively low fixed interest rate. Furthermore, interest payments on up to $100,000 of a home-equity debt are tax deductable.
Hot issue
A stock that attracts attention because its share price has risen substantially, and is expected to rise even further.