[H]
High Yield Bond – also called ‘junk bond’. These bonds are rated lower by rating agencies which means that they are more risky and have a higher chance of default.
Head & Shoulders – in technical analysis, a chart formation in which a stock price reaches a peak and declines, rises above its former peak and again declines and rises again but not to the second peak and then again declines. The first and third peaks are shoulders, while the second peak is the formation’s head. Technical analysts generally consider a head and shoulders formation to be a very bearish indication.
Hedging – a strategy designed to reduce investment risk. A perfect hedge is one that eliminates both the possibility of future loss and gain. A partial hedge reduces the range of future loss or gain. For example, an owner of a stock could buy a put option. If the stock fell in price, the loss on the stock would be partially or fully offset by the gain on the put option, depending on the terms of the option. If the stock rose in price, the put option might expire worthless, in which case the gain would be reduced by the investor’s cost to buy the put option.
High Price – the highest (intraday) price of a stock over the past 52 weeks, adjusted for any stock splits.
Holding Company – a corporation that owns enough voting stock in another firm to control management and operations by influencing or electing its board of directors.
Hot Issue – newly issued stock for which the demand exceeds the supply, and the price is expected to increase. The significance of the term is that special rules apply to the distribution of hot issues by an investment banking syndicate. The rules are administered by the National Association of Securities Dealers (NASD).
Horizontal Spread – an options strategy where the options have the same strike and different expiration dates.