Glossary

Hedgesearch for term

A transaction that reduces the risk of an investment

--Hedgingsearch for term

A strategy designed to reduce investment risk using call options, put options, short selling, or futures contracts. A hedge can help lock in existing profits. Its purpose is to reduce the volatility of a portfolio, by reducing the risk of loss.

Holding companysearch for term

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

Holding periodsearch for term

Length of time that an individual holds a security.