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Homemade Leverage What it is Homemade leverage is when an individual investor uses personal borrowing (for example, margin loans or personal loans) to recreate the financial leverage a company might otherwise use. Instead of buying shares of a leveraged firm, an investor buys shares of an unlevered firm and borrows personally to amplify exposure and…

Homemade Dividends: What They Are and How They Work Key takeaways Homemade dividends are cash generated by selling a portion of an investor’s own portfolio rather than receiving payouts from a company. They are central to the dividend irrelevance debate: if investors can create cash by selling shares, some argue corporate dividend policy matters less….

Home Warranty: What It Covers, How It Works, Costs, and When to Consider One What is a home warranty? A home warranty (also called a residential service contract) is a service contract that helps cover repair or replacement costs for household systems and appliances that break down from normal wear and tear during the contract…

Home Office Expense: Meaning, Calculation, Examples Key takeaways * Home office expenses are costs tied to operating a business or performing employment-related activities from your primary residence. * Deductions reduce taxable income but are subject to rules about exclusive and regular use and other limits. * The IRS allows two calculation methods: the regular (actual-expense)…

Home Office What is a home office? A home office is a space in a residence set aside for conducting business. It can serve self-employed individuals, independent contractors, small-business owners, and people who telecommute for an employer. When used for business, a home office can also affect tax treatment of certain home expenses. How it…

Home Mortgage Interest Deduction The mortgage interest deduction lets homeowners who itemize their tax returns reduce taxable income by deducting interest paid on qualifying loans used to buy, build, or improve a home. Mortgage lenders report deductible interest each year on Form 1098. How it works Deductible mortgage interest is claimed on Schedule A (Form…

Home Mortgage Disclosure Act (HMDA) Key takeaways HMDA (enacted 1975) requires many mortgage lenders to collect and report standardized data about mortgage applications, originations, and denials. The law promotes transparency to detect discriminatory or predatory lending and to ensure lenders serve community credit needs. Data reported under HMDA supports fair-lending enforcement, community investment planning, and…

Home Mortgage A home mortgage is a loan from a bank, mortgage company, or other lender to buy a residence. The property serves as collateral: the lender holds a lien or title interest until the loan is repaid. Because mortgages are secured by real estate, they typically carry lower interest rates than unsecured consumer loans….

Home Modification: What It Is and How It Works A home modification is any change to a residence designed to improve accessibility, safety, and independence for people with physical limitations, including older adults and people with disabilities. Modifications can be minor (removing loose rugs) or extensive (installing ramps or widening doorways). While some changes overlap…

Home Market Effect The home market effect describes how countries with large domestic demand for certain goods tend to concentrate production of those goods and become net exporters of them. It is a core idea in New Trade Theory, emphasizing economies of scale and transport costs rather than pure comparative advantage. Key points Goods with…

Home Inspection: What It Is and How It Works Definition A home inspection is a non-invasive examination of a property’s condition and safety, typically conducted before a sale is finalized. Its purpose is to identify defects, safety hazards, and maintenance needs that could affect a home’s value or livability. What an Inspector Checks A qualified…

Home Equity Loan: What It Is and How It Works A home equity loan (also called a home equity installment loan or second mortgage) lets homeowners borrow against the equity in their homes. It typically provides a one-time lump sum, repaid over a fixed term with a fixed interest rate, using the home as collateral….

Home Equity Conversion Mortgage (HECM) Key takeaways A HECM is the most common type of reverse mortgage, insured by the Federal Housing Administration (FHA). It lets homeowners aged 62+ convert home equity into cash without monthly mortgage payments; the loan becomes due when the home is sold, the borrower moves out, or dies. Funds can…

Home Equity: What It Is, How It Works, and How to Use It What is home equity? Home equity is the portion of a property’s market value that you own outright. It equals the home’s current market value minus any outstanding liens (for example, your mortgage balance). Equity grows when you pay down principal and…

Home Country Bias Home country bias is the tendency for investors to favor companies from their own country or region over foreign firms. This inclination toward familiar domestic brands and markets is common worldwide and can lead to portfolios that are overweight in home-country equities. Key takeaways Home country bias means preferring domestic stocks over…

Home Buyers’ Plan (HBP): What it is and how it works The Home Buyers’ Plan (HBP) is a Canadian program that lets eligible individuals withdraw money from their Registered Retirement Savings Plans (RRSPs) to buy or build a qualifying home. Withdrawals under the HBP are treated as a tax‑free loan provided the funds are repaid…

Home Bias Home bias is the tendency for investors to favor domestic equities over foreign ones, often resulting in portfolios heavily weighted toward companies from their own country. This preference can limit diversification and expose investors to country-specific risks. Key takeaways Home bias leads investors to overweight domestic stocks and underweight international opportunities. Causes include…

Home Banking: Definition, Types, Advantages, and Risks What is home banking? Home banking means carrying out banking transactions without visiting a branch. It includes mobile apps, online (web) banking, telephone banking, and banking by mail. The practice emerged with early online experiments in the 1980s and grew widely with the Internet in the 1990s. Many…

Home Affordable Refinance Program (HARP) Key takeaways * HARP was a federal program created after the 2008 financial crisis to help homeowners refinance when their mortgage balance exceeded their home’s value. * It applied only to loans owned or guaranteed by Fannie Mae or Freddie Mac and ended on December 31, 2018. * Borrowers who…

Home Affordable Modification Program (HAMP) The Home Affordable Modification Program (HAMP) was a federal initiative launched in 2009 to help homeowners at risk of foreclosure by making mortgage payments more affordable. Active through the end of 2016, HAMP aimed to lower monthly payments through standardized modification rules and financial incentives for mortgage servicers and investors….

Home: Definition, Legal Meaning, and Example What “home” means A home is the physical dwelling where a person or household lives and, in a legal sense, the place of permanent residence (domicile). Legal residence affects taxes, jurisdiction for probate and other laws, eligibility for state or local benefits, and sometimes citizenship or immigration matters. Why…

Holographic Will: Definition, Requirements, and Practical Guidance What is a holographic will? A holographic will is a last will and testament that is entirely handwritten and signed by the testator (the person making the will). It is an alternative to a formal will prepared with an attorney. Because it is handwritten, a holographic will usually…

Hollywood Stock Exchange (HSX): Meaning, Pros and Cons, Example Overview The Hollywood Stock Exchange (HSX) is an online prediction market and game where players buy and sell virtual securities tied to movies, celebrities, and TV shows using a virtual currency called the Hollywood Dollar (H$). Securities include MovieStocks, StarBonds, CelebStocks, TVStocks, Movie Funds and various…

Hollowing Out Key takeaways * Hollowing out describes the loss of middle‑class manufacturing jobs and spending power, leading to a larger share of lower‑income households and greater wealth concentration at the top. * Primary drivers include outsourcing, labor‑saving technologies, and rising costs for education, healthcare, and housing. * Data from several sources show a long‑term…

Holdovers: Definition and Key Points Holdovers are transactions—most commonly checks—that a bank has received but not yet processed. They occur when items arrive too late in the business day for same-day clearing. Holdovers can briefly create “float,” where the same funds appear in two accounts before processing completes. While usually short-lived, holdovers can be exploited…

Holdover Tenant: Definition, Rights, and What to Do Key takeaways * A holdover tenant remains in a rental property after the lease expires. * If a landlord accepts rent after expiration, a new tenancy may be created (often month-to-month or, in some places, a renewal of the prior term). If the landlord refuses rent, the…

Holdings: Definition and Role in Investing Key takeaways * Holdings are the individual assets within an investment portfolio, such as stocks, bonds, mutual funds, ETFs, options, futures, and cash. * The number and mix of holdings determine a portfolio’s diversification and risk profile. * Larger holdings have a disproportionate impact on overall portfolio returns. *…

Holding the Market: What It Means and How It Works What “holding the market” means “Holding the market” has two related meanings: An illegal trading tactic where a party places active or pending buy orders to prop up a falling security’s price or create an artificial floor after negative news. This can include layering or…

Holding Period Return (Yield) Holding Period Return (HPR) measures the total percentage return on an investment over the time it was held. It includes capital appreciation (or depreciation) plus any income (dividends, interest, distributions) received during the holding period. HPR is useful for comparing investments held for different lengths of time once converted to an…

What Is a Holding Period? A holding period is the span of time between when you acquire an investment and when you dispose of it. It determines whether gains or losses are treated as short-term or long-term for tax purposes and affects eligibility for certain tax-favored treatments (for example, qualified dividend status). Short-term vs. Long-term…

What Are Holding Costs? Holding costs are the expenses a company incurs for storing unsold inventory. They are one component of total inventory cost, alongside ordering costs and shortage costs. Holding costs cover both direct expenses and losses related to keeping goods on hand. Components of Holding Costs Common elements include: * Storage space (rent…

Holding Company Depository Receipt (HOLDR) What it was A Holding Company Depository Receipt (HOLDR) was a security that packaged a fixed collection of public stocks into a single tradable instrument. Created by Merrill Lynch and listed on the New York Stock Exchange, HOLDRs let investors gain sector or industry exposure without buying each stock individually….

Holding Company A holding company is a parent corporation that owns enough voting stock in one or more other companies (subsidiaries) to control their policies and management. Rather than producing goods or services itself, a holding company manages assets, sets strategy, appoints boards, and allocates capital across its subsidiaries while leaving day‑to‑day operations to each…

Holder of Record: What It Means and How It Works Key takeaways * The holder of record is the registered owner of a security and holds the legal rights and responsibilities of ownership. * For stocks, the holder of record typically has voting rights and receives dividend payments. For bonds, the holder of record receives…

Holdco (Holding Company): Overview and Examples Key takeaways A holdco (holding company) owns controlling interests in other companies or assets and typically earns income from dividends, interest, rent, and capital appreciation. Holdcos are commonly used to limit liability, centralize ownership, and separate asset ownership from operations. Setting up a holdco can be less expensive than…