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Hold Harmless Clause: Definition, How It’s Used, and Examples What is a hold harmless clause? A hold harmless clause (also called a hold harmless agreement, hold harmless provision, or indemnity agreement) is a contract term in which one party agrees not to hold the other party legally liable for specified claims, losses, or damages. It…

What Is a Hold Recommendation on a Stock? What is a hold? A “hold” is an analyst recommendation to neither buy nor sell a security. It signals that the analyst expects the stock to perform roughly in line with the market or comparable companies. Hold sits between “buy” and “sell”: existing shareholders are generally advised…

Holacracy What is holacracy? Holacracy is a system of organizational governance that replaces a traditional hierarchical command structure with self-managing teams and clearly defined roles. Instead of fixed job descriptions and top-down authority, work is distributed among autonomous, interdependent circles (teams). Individuals hold one or more roles with defined purposes, domains (areas of authority), and…

Hodrick-Prescott (HP) Filter — What It Is and Why You Should Be Cautious What the HP filter does The Hodrick–Prescott (HP) filter is a widely used smoothing technique for time series, especially in macroeconomics. It decomposes an observed series yt into a smooth “trend” component τt and a cyclical or irregular component ct: Explore More…

Understanding HODL: “Hold On for Dear Life” and Its Role in Crypto Investing HODL began as a 2013 forum typo for “hold” and evolved into a core crypto slogan and strategy: hold assets through extreme price swings rather than attempt short-term timing. It represents a buy-and-hold mentality driven by belief in cryptocurrencies’ long-term potential. Origin…

Hockey Stick Chart A hockey stick chart shows a long period of relatively flat activity followed by a sudden, steep rise—so named because the plotted line resembles a hockey stick. It is used across fields to illustrate dramatic inflection points, from scientific measurements (e.g., temperature or medical results) to business metrics like sales or user…

Hobby Loss: Definition, How It Works, and How to Avoid It What is a hobby loss? A hobby loss occurs when the Internal Revenue Service (IRS) classifies an activity as a hobby (an activity pursued for pleasure rather than for profit) and disallows deductions for expenses that exceed income from that activity. Hobby income must…

Hoarding: Definition, How It Works, and Examples What is hoarding? Hoarding is the purchase and storage of large quantities of a commodity by speculators who expect prices to rise. It usually refers to physical goods (gold, silver, wheat, copper, etc.) but can apply to currencies or other scarce assets. The goal is to profit from…

His Majesty’s Revenue and Customs (HMRC) His Majesty’s Revenue and Customs (HMRC) is the United Kingdom’s tax, payments and customs authority. It collects taxes, administers certain benefits and tax credits, enforces customs and tax law, and oversees payroll and minimum-wage compliance. Role and responsibilities Collects direct and indirect taxes, including: Income tax, corporation tax, capital…

Hit the Bid “Hit the bid” refers to selling a security at the prevailing bid price — the highest price a buyer is currently willing to pay. It is one side of the bid–ask dynamic: the bid is the top buy price, the ask (or offer) is the lowest sell price, and the spread is…

Historical Volatility (HV) What is Historical Volatility? Historical volatility (HV) measures how much a security’s price has fluctuated over a past period. It quantifies the dispersion of returns around their average and is used to assess the asset’s past riskiness. HV describes magnitude of movement, not direction or likelihood of loss. How HV Is Calculated…

Historical Returns: Definition, Uses, and How to Calculate Them Historical returns describe how much an asset, index, fund, or commodity has gained or lost over a past period. Analysts and investors study historical returns to understand past behavior, estimate risk, and inform decisions about asset allocation and risk management. While useful for context, historical returns…

Historical Cost: Definition, Principle, and How It Works Overview Historical cost is an accounting measurement that records an asset on the balance sheet at its original purchase price, including any costs necessary to prepare the asset for use. It is a foundational concept in U.S. generally accepted accounting principles (GAAP) and supports conservative financial reporting…

Historic Structure: Definition, Criteria, and How It Works What is a historic structure? A historic structure is a type of historic property recognized by the National Register of Historic Places. Unlike a building used primarily as a residence or shelter, the term “structure” covers constructed features such as bridges, canals, ships, locomotives, mines, and highways…

Historic Pricing: What It Means and How It Works Historic pricing is a valuation method that uses the most recently calculated net asset value (NAV) to price an asset. It’s commonly applied to investments whose values aren’t updated continuously in real time, such as many mutual funds. Key takeaways Historic pricing uses the last calculated…

Histogram What is a histogram? A histogram is a graphical display that shows the distribution of numerical data by grouping values into contiguous intervals (bins) and representing the frequency (or proportion/density) of observations in each bin with a bar. It condenses many data points into an easily interpreted visual that reveals patterns such as skewness,…

Hiring Freeze: How It Works and Its Impact What is a hiring freeze? A hiring freeze is a deliberate pause in recruiting new employees, usually temporary, used to contain costs. Companies may implement a hiring freeze during financial distress, an economic slowdown, or when they face overcapacity. A freeze can apply to all new hires…

Hire Purchase Agreement Key takeaways * A hire purchase (HP) agreement lets a buyer take possession of an expensive item after a down payment and pay the remainder in installments plus interest. * Legal ownership generally transfers only after all payments are made. * HP is commonly used in the U.K.; it is similar to—but…

HIPAA Waiver of Authorization What it is A HIPAA waiver of authorization is an approval that allows a covered entity (for example, a healthcare provider, insurer, or clearinghouse) to use or disclose an individual’s protected health information (PHI) for purposes—commonly research—without obtaining the individual’s written authorization. PHI is any health-related information that can be linked…

Hindsight Bias What it is Hindsight bias is the tendency to believe, after an event has occurred, that you had accurately predicted it beforehand. Knowing the outcome makes it easier to construct a convincing explanation, which leads people to overestimate their foresight and to be overconfident about predicting future events. Key takeaways Hindsight bias makes…

Hindenburg Omen Definition The Hindenburg Omen is a technical breadth indicator intended to signal an elevated probability of a broad market decline. It flags days when an unusually large number of stocks simultaneously make new 52‑week highs and new 52‑week lows—an uncommon combination that may indicate market internal conflict and growing risk of a sell‑off….

Hikkake Pattern The hikkake pattern is a short-term technical analysis setup used to anticipate price reversals and breakout moves. Pronounced Hĭ-KAH-kay, it was described by Daniel L. Chesler, CMT, in 2004. The name comes from a Japanese word meaning “hook” or “ensnare,” reflecting how the pattern can trap traders who act on an apparent breakout….

Highly Leveraged Transaction (HLT) What is an HLT? A highly leveraged transaction (HLT) is financing provided to a company that already carries a large amount of debt. HLTs are commonly used to fund buyouts, acquisitions, or recapitalizations. They increase a borrower’s overall leverage and compensate lenders with higher interest rates because of the elevated risk….

Highly Compensated Employee (HCE): Definition, Rules, and Options What is an HCE? A Highly Compensated Employee (HCE) is an IRS designation used to ensure employer retirement plans (like 401(k)s) do not disproportionately favor top earners. You are an HCE if you meet either condition during the year (or the preceding year): You owned more than…

Highest In, First Out (HIFO) Key takeaways HIFO is an inventory accounting approach that removes the highest-cost items from inventory first, producing the largest possible cost of goods sold (COGS) and the lowest ending inventory value for a period. Because it increases COGS, HIFO can reduce taxable income in the short term. HIFO is rarely…

Higher Education Act of 1965 (HEA) Overview The Higher Education Act of 1965 (HEA) is landmark federal legislation designed to expand access to postsecondary education and strengthen U.S. colleges and universities. It created major federal student-aid programs, supported teaching and library resources, and funded initiatives to help low‑income and first‑generation students pursue higher education. Key…

High-Yield Investment Program (HYIP) Key takeaways * A HYIP is a fraudulent investment scheme that promises extraordinarily high returns, often exceeding 100%. * Most HYIPs operate as Ponzi schemes, using funds from new investors to pay earlier investors rather than generating real investment returns. * Common red flags include guaranteed high returns, secrecy, fictitious financial…

High-Yield Bond Spread: Definition, Calculation, and Uses in Investing What is a high-yield bond spread? A high-yield bond spread (also called a credit spread) is the difference between the yield on high-yield (junk) bonds and the yield on a benchmark bond (commonly U.S. Treasuries or investment‑grade corporate bonds) of similar maturity. Spreads are expressed in…

High-Yield Bonds: Definition, Types, Risks, and How to Invest High-yield bonds, commonly called junk bonds, are corporate debt securities that pay higher interest because the issuing companies have lower credit ratings. They offer potential for higher returns than investment-grade bonds but carry greater risks, especially the risk of default. These bonds are often issued by…

High-Water Mark What it is A high-water mark (HWM) is the highest historical value an investment fund or account reaches. It is commonly used to determine when fund managers earn performance-based fees: managers collect incentive fees only on gains that exceed the previous peak value. Why it matters The HWM protects investors from: * Paying…

High Street Bank Key takeaways A high street bank is a large retail bank with many branch locations that serves individuals and small- to mid-sized businesses. The term originated in the UK—“high street” is roughly equivalent to North America’s “Main Street.” High street banks provide everyday banking services (accounts, payments, loans, mortgages) and often also…

High-Speed Data Feed What it is High-speed data feeds are ultra low-latency connections that deliver real-time market information—price quotes, trades, yields—and enable near-instant order execution. They are a core technology for algorithmic and high-frequency trading (HFT), where milliseconds or microseconds can determine profitability. Key takeaways High-speed feeds minimize latency to give traders the fastest possible…

Loan-to-Value (LTV) Ratio The loan-to-value (LTV) ratio compares the amount of a mortgage to the appraised value of the property. Lenders use LTV to assess risk: higher LTVs indicate less borrower equity and greater lender exposure, which often leads to higher interest rates or insurance requirements. How LTV Works LTV is a key part of…

High‑Net‑Worth Individuals (HNWI) Definition A high‑net‑worth individual (HNWI) is generally defined as someone holding at least $1 million in liquid financial assets after liabilities. Liquid assets typically include cash, stocks, bonds, and other investments that can be readily converted to cash. Personal assets that are difficult to sell—such as a primary residence, fine art, and…

High Minus Low (HML): Understanding the Value Premium What is HML? High Minus Low (HML) — often called the value premium — measures the return spread between value stocks (high book-to-market ratios) and growth stocks (low book-to-market ratios). It captures the historical tendency for value stocks to outperform growth stocks and is used to evaluate…