Glossary of Financial Terms: H
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This article is from the Glossary of Financial Terms.
Glossary of Financial Terms: H
- 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 using "call" options, "put" options, "short" selling, or futures contracts. A hedge can help lock in existing profits. Its purpose is to reduce the potential volatility of a portfolio, by reducing the risk of loss. - 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.
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