Secured Loans
A freely convertible currency that is not expected to depreciate in value in the
foreseeable future.
Hard dollars
Used in the context of general equities. Actual, separate payments made by a
customer for services including research, provided by a brokerage firm.
Antithesis of soft dollars.
Harmless warrant
Warrant that allows the user to purchase a bond only by surrendering an existing
bond with similar terms.
Hart-Scott-Rodino Act
Often used in risk arbitrage. Antitrust act administered by U.S. Department of
Justice and the F.T.C. that requires an investor to file a form with the government
before he acquires an economic interest in the lesser of $15 million or 15% in a
specific security. The government has thirty days to respond to the filer.
Harvey, Campbell R
Author of this glossary. Finance professor at Duke University. Author of research
on international finance, asset allocation and emerging markets.
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 formations head. Technical analysts
generally consider a head and shoulders formation to be a very bearish
indication.
Heavy
Used in the context of general equities. Presently dominated by sellers, or over-
supply, in the market or security resulting in falling prices. See: overbought,
resistance level, tired
Hedge
A transaction that reduces the risk of an investment.
