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Human Resource Planning (HRP) Key takeaways * Human Resource Planning (HRP) is a strategic, continuous process to ensure an organization has the right number and mix of employees with the skills needed now and in the future. * The four core steps are: analyze current labor supply, forecast future labor demand, identify gaps, and develop/implement…

Human-Life Approach Definition The human-life approach estimates how much life insurance a family needs by calculating the present value of the income the deceased would have earned and provided to dependents. It focuses on replacing lost future earnings and related benefits so the family can maintain its standard of living. Explore More Resources › Read…

Human Development Index (HDI) Overview The Human Development Index (HDI) is a composite measure developed by the United Nations to assess countries’ progress in human well‑being. Rather than focusing solely on economic output, the HDI combines health, education, and income indicators to provide a broader view of average achievements in human development. What the HDI…

Human Capital Human capital is the economic value of workers’ skills, experience, knowledge, health, and attributes that increase productivity and contribute to a company’s profitability. It is an intangible asset—not recorded on a balance sheet—but central to firm performance and economic growth. Key takeaways Human capital includes education, training, skills, health, and workplace behaviors (e.g.,…

Hull-White Model Overview The Hull‑White model is a one‑factor short‑rate model used to price interest‑rate derivatives. It assumes the instantaneous short rate follows a mean‑reverting process with normally distributed shocks. The model is widely used because it can be calibrated to fit the current term structure of interest rates while remaining mathematically tractable. Key features…

Hulbert Rating A Hulbert rating is a performance score for investment newsletters. Created by Mark Hulbert, the system evaluates newsletters by tracking their published buy and sell recommendations and measuring how those recommendations would have performed over time on a risk-adjusted basis. Key points The rating tracks hypothetical portfolios that follow each newsletter’s published advice…

Hungarian Forint (HUF): Overview The Hungarian forint (HUF), symbol Ft, is the national currency of Hungary. It is issued and managed by Magyar Nemzeti Bank (the Hungarian National Bank), which is responsible for maintaining price stability and conducting monetary policy. The forint was introduced in its modern form in 1946. Key facts Currency code: HUF;…

HUD-1 Form A HUD-1 (HUD-1 Settlement Statement) is a standardized real estate settlement document that itemizes all charges and credits for both buyer and seller in certain mortgage transactions. It shows the full breakdown of closing costs, loan fees, and amounts due at closing. When a HUD-1 is used Still used for reverse mortgages and…

Hubris What is hubris? Hubris is excessive pride or overconfidence that leads people to believe they cannot fail. It distorts judgment, reduces self-awareness, and encourages risky or arrogant behavior. While confidence is necessary for achievement, hubris blinds people to limits, feedback, and consequences. Key features: * Extreme self-assurance that ignores evidence or dissenting views *…

Hubbert’s Peak Theory Key takeaways * Hubbert’s peak theory models production of a finite resource as a bell-shaped curve: growth, peak, then terminal decline. * Technological advances and new discoveries have repeatedly pushed the timing of peak oil outward. * Fossil fuels are ultimately finite, but current proven reserves and extraction technology mean a global…

Hubbert Curve Key takeaways The Hubbert curve models the production rate of a finite resource over time as a bell-shaped rise and fall. Developed by M. King Hubbert in 1956 to describe fossil-fuel production, it applies to any limited resource. The curve highlights a peak production point after which output declines; timing can be shifted…

Hub and Spoke Structure A hub and spoke structure (also called a master-feeder structure) is a portfolio management arrangement in which multiple investment vehicles (the “spokes” or feeder funds) pool capital into a single central vehicle (the “hub” or master fund). Each spoke remains a distinct, individually managed vehicle but routes trades and cash flows…

HSA Custodian An HSA custodian (also called an HSA administrator) is an IRS‑approved financial institution — such as a bank, credit union, insurance company, or brokerage — that holds and manages health savings accounts (HSAs). The custodian holds the account’s cash and investments, processes contributions and distributions, and provides account services such as debit cards,…

Howey Test The Howey Test is the U.S. legal framework for deciding whether a transaction qualifies as an “investment contract” and thus a security under federal securities laws. It is especially important for blockchain projects and cryptocurrencies because it determines when token sales and related offerings must comply with SEC registration and disclosure rules. Origin…

What Is a Housing Unit? A housing unit is a distinct living space—such as a house, apartment, mobile home, or a single suite within a larger structure—that is intended for one person or a household to live, eat, and sleep separately from others. It has direct access to the outside or to a common hallway…

Housing Starts Housing starts measure the number of new residential housing units on which construction has begun. Because new housing generates spending on construction, appliances, furniture and related services, housing starts are a widely watched economic indicator that sheds light on housing demand, construction activity, employment, and broader consumer spending. Key takeaways A housing start…

NAHB/Wells Fargo Housing Market Index (HMI): What it Is and Why It Matters Key takeaways * The HMI is a monthly sentiment index of U.S. single‑family home builders conducted by the National Association of Home Builders (NAHB) in partnership with Wells Fargo. * It aggregates builders’ ratings of current sales, six‑month sales expectations, and prospective‑buyer…

Housing Expense Ratio What it is The housing expense ratio (also called the front-end ratio) is the percentage of your gross (pre-tax) income that goes toward housing costs. Lenders use it to help decide whether you can afford a mortgage. Formula: * Housing Expense Ratio = (Monthly housing expenses ÷ Monthly gross income) × 100…

Housing Bubbles: Causes, Effects, and Examples What is a housing bubble? A housing bubble occurs when home prices rise rapidly to levels that are unsustainable relative to fundamentals such as incomes, rents, and long-term interest rates. Surging demand—often driven by speculation and easy credit—pushes prices up until a triggering event (rising rates, tighter credit, oversupply,…

Housing Bonds What they are Housing bonds are municipal debt securities issued by state or local governments to finance affordable housing—either by funding construction and rehabilitation of rental or multifamily projects or by providing low-cost mortgages to eligible homebuyers. They are a form of revenue bond (often issued as private activity bonds) whose repayment is…

Housing Authority Bonds Housing authority bonds (housing bonds) are municipal securities issued by state or local agencies to finance the construction, rehabilitation, or acquisition of affordable rental and owner-occupied housing. Investors receive interest that is generally exempt from federal income tax and, in many cases, exempt from state and local income taxes. Key points Issued…

Housing and Economic Recovery Act (HERA) Key takeaways HERA (2008) was enacted to stabilize the housing market and respond to the subprime mortgage crisis. It created the Federal Housing Finance Agency (FHFA) and gave the FHA authority to guarantee large volumes of refinance loans for distressed borrowers. HERA contains multiple subtitle acts that (a) offered…

Household Income: What It Is and How to Calculate It Definition Household income is the combined annual income of all people living together in the same household. It’s a common measure of a household’s earning power and is used by governments and organizations to assess economic conditions and determine eligibility for benefits. What counts as…

What Are Household Expenses? Household expenses are the everyday costs of running a home. They include fixed and recurring payments (rent or mortgage, utilities, insurance) as well as variable and discretionary spending (groceries, transportation, entertainment). When multiple people share a residence, total household costs are often split to determine each person’s share. Understanding these expenses…

Household Employee: Definition, Examples, and Taxes A household employee is someone hired and paid by a homeowner to perform services at or within the employer’s residence, where the employer directs both what work is done and how it is performed. Common examples include nannies, babysitters, housekeepers, private nurses, caretakers, drivers, and sometimes gardeners or yard…

House Price Index (HPI) What is the HPI? The House Price Index (HPI) measures changes in single‑family home prices across the United States. Published by the Federal Housing Finance Agency (FHFA), it serves as a broad indicator of housing-market trends and helps inform mortgage analysis, housing affordability assessments, and economic forecasts. How the HPI is…

House Poor: What It Means and How to Avoid It What “house poor” means Being house poor (also called “house rich, cash poor”) means spending a large share of your income on homeownership—mortgage payments, property taxes, maintenance, insurance, and utilities—so that little cash remains for other expenses. People who are house poor often struggle to…

House Money Effect The house money effect is a behavioral finance phenomenon in which people take greater risks with profits or windfalls than they would with their original savings or wages. Because gains are mentally framed as “extra” or separate from principal, investors often treat them more freely, increasing risk tolerance and altering decision-making. Key…

House Maintenance Requirement: What it Is and How It Works A house maintenance requirement is the minimum equity a brokerage firm requires in a margin account after a purchase. It’s set by individual brokerages but must meet or exceed the legal minimum established by Regulation T of the Federal Reserve. Key points Regulation T sets…

House Call: Meaning and How It Works A house call is a demand from a brokerage firm that an investor deposit enough cash or margin-eligible securities to cover a shortfall in a margin account. It is a form of margin call triggered when the account’s equity falls below the brokerage’s required maintenance margin, typically after…

Hotelling’s Theory Hotelling’s theory (or Hotelling’s rule) describes how owners of nonrenewable resources decide whether to extract and sell now or leave the resource in the ground and wait for a potentially higher price. It links the optimal extraction decision to prevailing real interest rates: resource owners will extract only if the expected return from…

Hot Wallet: Definition, Types, Examples, and Safety Tips What is a hot wallet? A hot wallet is any cryptocurrency wallet that is connected to the internet or another networked device. It stores the private keys needed to send and receive digital currencies and serves as the primary interface for transactions. Because they are always online,…

Hot Waitress Economic Index: What It Is and How It Works The Hot Waitress Economic Index (also called the attractive server index) is an informal, tongue-in-cheek indicator that gauges economic health by counting how many attractive people are working as servers. The basic idea: when the economy is strong, good-looking people can find higher-paying jobs;…

Hot Money: Definition and Economic Impact Key takeaways Hot money is short-term capital that moves quickly across countries and financial markets to chase the highest available returns. It responds to interest-rate differentials, yield opportunities, and perceived risk; banks attract it by offering higher short-term rates. Large inflows can boost asset prices and currency values; sudden…

Hot IPO: What It Means and How It Works Key takeaways A “hot IPO” is an initial public offering that attracts unusually strong investor and media interest. High demand typically pushes the stock price sharply higher once trading begins, though such moves are often short-lived. Investment banks (underwriters) set the IPO price, allocate shares, and…