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Hawthorne Effect What it is The Hawthorne Effect describes the tendency for people to change or improve their behavior simply because they know they are being observed, not necessarily because of any experimental intervention. Origin The term comes from studies at Western Electric’s Hawthorne Works near Chicago (late 1920s–early 1930s). Researchers tested factors such as…

Inflation Hawks Explained Inflation hawks are policymakers who prioritize keeping inflation low and stable, even if that means accepting slower economic growth or higher unemployment. They typically support raising interest rates to cool demand and prevent rising prices. Hawks contrast with “doves,” who favor lower interest rates to stimulate growth and job creation. Key takeaways…

Hawala Hawala is an informal, trust-based method of transferring value that moves funds without physically or electronically sending money between accounts. Originating in South Asia, it relies on networks of brokers (hawaladars) who settle obligations among themselves through informal records, family ties, or reciprocal trade rather than formal bank transfers. Key takeaways Transfers are fast,…

Hashgraph Consensus Mechanism Hashgraph consensus is an alternative to blockchain consensus. Like a blockchain, a hashgraph is a decentralized, cryptographically secured ledger that records transactions. But instead of organizing data into sequential blocks validated by miners or validators, a hashgraph records a continuous history of who told whom what and when. Consensus is reached through…

Hashed Timelock Contract (HTLC) A Hashed Timelock Contract (HTLC) is a type of smart contract used in blockchain systems to enable conditional, time-limited transfers. HTLCs reduce counterparty risk by combining cryptographic proof (a hashlock) with a deadline (a timelock). They are a core mechanism for atomic swaps and off-chain payment networks like the Lightning Network….

What is a hash? A hash is the output of a hash function: a mathematical algorithm that takes input data of any size and produces a fixed-size string (typically represented in hexadecimal). Hash functions are deterministic (the same input always yields the same hash) and designed so that deriving the original input from the hash…

Harvest Strategy A harvest strategy is a business and marketing approach that reduces or ends investment in a product, product line, or business unit so the company can maximize short-term cash flow and profits from that asset. It is most commonly applied near the end of a product’s life cycle, when further spending is unlikely…

Harvard MBA Indicator The Harvard MBA Indicator is a contrarian, long-term stock-market signal based on the share of Harvard Business School MBA graduates who take “market-sensitive” jobs—roles closely tied to financial markets such as investment banking, securities sales and trading, private equity, venture capital, and leveraged buyouts. Key takeaways The indicator measures the percentage of…

Harvard Business School Overview Harvard Business School (HBS) is the graduate business school of Harvard University, founded in 1908. Best known for its flagship two-year MBA, HBS is consistently ranked among the world’s leading business schools and offers a range of graduate, doctoral, executive, and online programs. History and Recognition Founded in 1908; established the…

Hart-Scott-Rodino Antitrust Improvements Act of 1976 Overview The Hart‑Scott‑Rodino (HSR) Act requires certain companies to notify the Federal Trade Commission (FTC) and the Antitrust Division of the Department of Justice (DOJ) before completing specified mergers, acquisitions, or tender offers. The premerger notification gives regulators time to review transactions for potential anticompetitive effects and to seek…

Harry Markowitz and Modern Portfolio Theory Key takeaways * Harry Markowitz introduced Modern Portfolio Theory (MPT) in 1952, shifting focus from individual securities to the performance of entire portfolios. * The Efficient Frontier is MPT’s core tool: it identifies portfolios that provide the maximum expected return for a given level of risk. * Markowitz emphasized…

Harmonized Sales Tax (HST) What is the HST? The Harmonized Sales Tax (HST) is a consumption tax in Canada that combines the federal Goods and Services Tax (GST) with a province’s retail sales tax into a single levy collected by the federal government. The GST base is 5% nationwide; provinces that adopt the HST add…

Harmonized Index of Consumer Prices (HICP) The Harmonized Index of Consumer Prices (HICP) is the European Union’s standard measure of consumer inflation. It tracks changes over time in the prices households pay for a representative basket of goods and services and provides a comparable inflation rate across EU countries. The European Central Bank (ECB) relies…

Harmonic Mean — Definition and Uses The harmonic mean is an average best suited for rates, ratios, and multiples (for example, price-to-earnings ratios). It is defined as the reciprocal of the arithmetic mean of the reciprocals of a set of numbers. Compared with other averages, the harmonic mean gives relatively greater weight to smaller values….

Harmless Warrant What it is A harmless warrant (also called a wedding warrant) is a provision attached to a bond that requires a bondholder to surrender an existing bond to the issuer before purchasing another bond from the same issuer with the same terms (maturity, principal amount, and yield). It prevents an investor from owning…

Hardship Withdrawal — Definition, Rules, and Alternatives What is a hardship withdrawal? A hardship withdrawal is an early distribution from a tax-advantaged retirement account (for example, an IRA or a 401(k)) taken to meet an “immediate and heavy financial need.” The IRS and plan sponsors may permit these distributions under strict rules. If allowed, the…

Hardship Exemption A hardship exemption was a provision of the Affordable Care Act (ACA) that allowed people who could not afford health insurance because of serious personal or financial circumstances to avoid the individual mandate penalty (the Shared Responsibility Payment). Exemptions were granted through the Health Insurance Marketplace and applied to the period when the…

Hardening: Meaning, How It Works, and Its Effects What is hardening? Hardening describes market conditions characterized by rising prices together with declining volatility. The term most commonly refers to commodities futures markets but is also used in insurance and banking to denote periods of stricter underwriting or lending standards. Explore More Resources › Read more…

Hard-To-Borrow List: What it Means and How it Works What is a hard-to-borrow list? A hard-to-borrow list is a record maintained by brokerages that identifies securities that are difficult to obtain for short selling. When shares are scarce, volatile, or otherwise constrained, brokers flag those securities so clients know the shares may be unavailable to…

Hard Stop A hard stop is a predefined price level that automatically triggers an exit from a position to limit losses. It is a firm, preplaced rule—typically implemented as a stop order—that a trader commits to and leaves active until filled or canceled. Definition A hard stop is a standing order that converts into a…

Hard Skills: Definition, Examples, and How to Build Them Key takeaways * Hard skills are teachable, technical abilities required to perform specific job tasks. * They’re acquired through education, training, certifications, and on-the-job experience. * Hard skills are quantifiable and often validated by degrees, certificates, tests, or portfolios. * Employers typically seek a combination of…

Hard Sell Definition A hard sell is a direct, insistent sales or advertising approach designed to get a consumer to buy immediately. It relies on pressure, urgency, and repeated persuasion rather than time for deliberation or relationship-building. How it works Hard-sell tactics push prospects toward an immediate decision. Common techniques include: * Aggressive or abrupt…

Hard Money Loans: Definition, Uses, and Pros & Cons Key takeaways Hard money loans are short-term, asset‑backed loans secured by real estate and underwritten primarily on property value rather than borrower credit. They close quickly (sometimes in ~10 business days) but carry higher interest rates—commonly 10%–18%—and shorter terms (typically 6–18 months). Common uses include fix‑and‑flip…

Hard Money: What It Is and How It’s Used Key takeaways Hard money is currency made of—or directly backed by—a commodity with intrinsic value (historically gold or silver). It is prized for stability as a medium of exchange, store of value, and unit of account. Most modern national currencies are fiat (not commodity-backed) and are…

Hard Loan A hard loan is a cross-border loan denominated in a “hard” currency — a widely accepted, stable currency such as the U.S. dollar or euro. Hard loans are commonly used when borrowers and lenders operate in different countries or when lenders want to avoid the exchange-rate risk associated with less liquid or volatile…

Hard Landing What is a hard landing? A hard landing is a sharp economic slowdown or downturn that follows a period of rapid growth. The term borrows from aviation: like a high‑speed landing that causes stress or damage, an economy that suddenly loses momentum can experience steep falls in output, employment, and asset prices. Hard…

Hard Inquiry Key takeaways A hard inquiry (hard pull) occurs when a lender requests your full credit report after you apply for credit. Hard inquiries can cause a small, temporary drop in your credit score. Hard inquiries remain on your credit report for two years but generally affect scores only for the first year. Soft…

Hard Fork (Blockchain) A hard fork is a backward-incompatible change to a blockchain’s protocol that creates a new, separate chain. When the rules change in a way that nodes running the old software no longer recognize new blocks or transactions, the ledger splits: one branch follows the previous rules, and the other follows the updated…

Hard Dollars What are hard dollars? Hard dollars are explicit cash payments a client makes to a brokerage or financial service provider in exchange for services. These are fixed, out-of-pocket charges that are known and recorded up front, such as transaction fees, monthly account maintenance charges, or direct payments for research and advisory services. How…

Hard Currency: Definition, Characteristics, Examples, and Considerations What is a hard currency? A hard currency is money issued by a country perceived as politically and economically stable, and that remains widely accepted and liquid in international markets. Hard currencies are commonly used for international trade, held as reserves, and serve as a safe-haven store of…

Hard Call Protection: What It Is and How It Works What is hard call protection? Hard call protection (aka absolute call protection) is a provision in a callable bond that prevents the issuer from redeeming (calling) the bond before a specified date. During this protected period investors are guaranteed to receive the stated coupon payments…

What Are Hard Assets? A hard asset is a tangible, physical resource that has intrinsic value and can be used to produce goods or services or sold for cash. Examples include land, buildings, machinery, vehicles, inventory, and commodities. Hard assets are important components of a company’s productive capacity and often appear on the balance sheet…

Harami Cross A harami cross is a two-candlestick Japanese candlestick pattern that can signal a potential trend reversal. It consists of a large candlestick in the direction of the prevailing trend followed by a doji whose real body is completely contained within the prior candle’s body. The pattern can be bullish (after a downtrend) or…

Happiness Economics: What It Is and How It Works Key takeaways * Happiness economics studies the link between people’s subjective well‑being and economic factors such as income, employment, health, and public services. * Main methods include surveys of self‑reported life satisfaction, wellbeing indices, and econometric analysis to identify drivers of happiness. * Common indices include…

Hanging Man Candlestick Definition The hanging man is a single-bar bearish reversal candlestick that appears at the end of an uptrend. It has a small real body near the top of the trading range, a long lower shadow (usually at least twice the body length), and little to no upper shadow. The pattern signals increasing…