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Hang Seng Index (HSI) The Hang Seng Index (HSI) is Hong Kong’s benchmark equity index, tracking the performance of the largest and most liquid companies listed on the Hong Kong Stock Exchange (HKEx). Established in 1969, the HSI serves as a barometer for the Hong Kong economy and a widely cited indicator for Asian markets….

Hands-Off Investor: Meaning, Pros and Cons What is a hands-off investor? A hands-off investor follows a passive investment approach: they set an investment plan, choose broad vehicles (index funds, ETFs, or target‑date funds), and make few changes over time. The strategy emphasizes long-term holding, diversification, and low-cost funds that require minimal monitoring. Explore More Resources…

Handle What is a handle? A handle is the whole-number portion of a price quote used by traders to communicate the general price level quickly. For stocks or futures, it’s the part to the left of the decimal point (e.g., a price of $149.25 has a handle of $149). The fractional portion to the right…

Handelsgesetzbuch (HGB) — The German Commercial Code Overview The Handelsgesetzbuch (HGB) is Germany’s commercial code and primary body of law governing commercial activities, company registration, accounting, and certain employment and contract matters. It sets accounting standards and reporting requirements for business entities in Germany and influences how German companies prepare financial statements. Key points: *…

Hamptons Effect The Hamptons Effect describes a short-term market pattern around the U.S. Labor Day weekend: trading volume and volatility often dip in the days immediately before the holiday and then increase when traders return. The name alludes to high-profile traders spending late summer in the Hamptons, reducing market activity before the long weekend. Key…

Hammering Hammering is a rapid, concentrated sell-off in a stock, a sector, or the broader market that follows an unexpected adverse event. The result is a steep, often sudden, drop in the affected security’s price. Key takeaways Hammering is typically triggered by an unexpected negative event—an “asteroid event”—that changes short-term outlooks. It can affect a…

Hammer Clause: What it Means, How it Works, Example What is a hammer clause? A hammer clause is a provision in an insurance policy that enables the insurer to force (or effectively compel) the insured to accept a settlement offer. It’s also called a blackmail clause, settlement cap provision, or consent-to-settlement provision. The clause exists…

Hammer Candlestick The hammer is a single-candle bullish reversal pattern that signals a potential shift from selling to buying pressure after a downtrend. It’s valued by swing traders as a clear, easy-to-recognize cue for a long entry when combined with confirmation and risk management. Key takeaways A hammer has a small real body near the…

Hamada Equation Definition The Hamada equation quantifies how financial leverage (debt) affects a firm’s market risk as measured by beta. It adjusts an unlevered beta (the beta of an otherwise identical all-equity firm) to produce a levered beta that reflects the additional systematic risk introduced by debt. Formula β_L = β_U [1 + (1 −…

What is the halo effect? The halo effect is a cognitive bias in which a person’s overall positive impression of a brand, product, or individual causes them to assume positive qualities in other, unrelated areas. In marketing, a strong, well-liked product can create favorable expectations for a company’s other offerings. The reverse—when one negative impression…

Halloween Strategy: What it means and how it works Definition The Halloween strategy (also called the Halloween effect or Halloween indicator) is a seasonal market-timing rule: buy stocks on or after October 31 and sell them on or before May 1. The complementary adage is “sell in May and go away.” The strategy holds that…

Halloween Massacre: What it Was and Why it Mattered The “Halloween Massacre” refers to a sudden Canadian tax-policy change announced on October 31, 2006, that ended the favorable tax treatment of income trusts. The move transformed the investment landscape for hundreds of trusts and their unitholders and triggered immediate market reactions. Background: What were Canadian…

Half-Year Convention for Depreciation What it is The half-year convention treats all property acquired during a tax year as if it were placed in service at the midpoint of that year. As a result, only half of the normal full-year depreciation is allowed in the first year and the remaining half is deferred to the…

Half Stock A half stock is a share issued with a par (face) value that is roughly half of the standard par value for that class of stock. It can be issued as common or preferred stock, but in practice half stock is more often a form of preferred stock and typically carries a proportionally…

Haircut (Finance) What is a haircut? In finance, a “haircut” is a reduction applied to the value of an asset. It most commonly refers to: * A reduction in the assessed value of collateral used to secure a loan, intended to protect the lender against declines in market value before the collateral can be sold….

Haggle: Meaning, How It Works, and Key Considerations Key takeaways * Haggling (also called bargaining or informal negotiating) is the process of negotiating a price until both buyer and seller agree. * It typically involves sequential offers and counteroffers; buyers aim to pay less, sellers aim to receive more. * Haggling is common for big-ticket…

Hacktivism Hacktivism combines hacking and activism: politically or socially motivated computer intrusions and online actions intended to advance a cause. Hacktivists target governments, corporations, and other organizations to expose information, disrupt services, bypass censorship, or draw attention to issues. Key takeaways Hacktivism is non‑violent but typically illegal — it uses cyber techniques to influence public…

Habendum Clause: Definition and Practical Guide Key takeaways * A habendum clause specifies the rights, interests, and duration of ownership or possession conveyed by a property-related contract. * In real estate, it describes the type and any restrictions on title (often beginning “To have and to hold”). * In oil and gas leases, it defines…

H‑Shares What are H‑shares? H‑shares are shares of mainland Chinese companies that are listed on the Hong Kong Stock Exchange (and, in some cases, other foreign exchanges). They are traded in Hong Kong dollars and are freely available to international investors. H‑shares provide a channel for foreign participation in Chinese companies while those companies remain…

Gwei What is gwei? Gwei is a denomination of ether (ETH), the native cryptocurrency of the Ethereum blockchain. It is commonly used to quote transaction fees (gas prices) because gas costs are typically very small fractions of an ETH. 1 gwei = 0.000000001 ETH (10^-9 ETH) 1 gwei = 1,000,000,000 wei (10^9 wei) Wei is…

Guppy Multiple Moving Average (GMMA) The Guppy Multiple Moving Average (GMMA) is a technical indicator that uses a set of exponential moving averages (EMAs) to highlight shifts in price behavior and the strength of trends. Developed by Daryl Guppy, GMMA overlays two groups of EMAs on a price chart to compare short-term trader behavior with…

Gunslinger What is a gunslinger? A “gunslinger” is a slang term for an aggressive portfolio manager or trader who pursues high-risk, short-term strategies to generate outsized returns. Rather than focusing on a company’s long-term fundamentals, a gunslinger emphasizes momentum, sharp price movements, and tactical market moves. Key takeaways Gunslingers favor high-risk techniques—leverage, margin, short selling,…

Guns-and-Butter Curve Key takeaways The guns-and-butter curve is a simple production-possibility model showing the tradeoff between military spending (“guns”) and civilian goods (“butter”). It illustrates opportunity cost: producing more of one good requires producing less of the other unless overall productivity rises. Economic growth shifts the curve outward, allowing higher production of both military and…

Gunnar Myrdal Introduction Gunnar Myrdal (1898–1987) was a Swedish economist, sociologist, and political figure whose work blended economic theory, social analysis, and active public engagement. He is best known for contributions to price theory and development economics, his influential study of race relations in the United States, and his role in shaping Sweden’s mid-20th-century welfare…

Gun-jumping: What It Is, How It Works, and How to Prevent It What is gun-jumping? Gun-jumping (also called “jumping the gun”) refers to acting on material financial information before it has been publicly disclosed. It undermines the principle that all investors should make decisions based on the same set of public disclosures (for example, a…

Guinea Franc (GNF) Key takeaways The Guinea franc (ISO code: GNF) is the national currency of the Republic of Guinea (Guinea-Conakry). Guinea has issued two guinean francs; a short-lived syli was used between them (1971–1985). The GNF floats freely on international markets and is influenced by domestic political stability and commodity exports. What is the…

Guilder Shares (New York Shares) Guilder shares—also known as New York Shares—were a historical mechanism that allowed Dutch companies to provide tradable equity to U.S. investors at a time when the Netherlands prohibited foreign trading of shares listed on its national exchanges. What they were A Guilder share represented an ownership stake in a Dutch…

Guideline Premium and Corridor Test (GPT) Key takeaways * The Guideline Premium and Corridor Test (GPT) determines whether a life insurance policy qualifies for favorable tax treatment as insurance rather than being taxed as an investment. * GPT limits how much premium can be paid into a policy relative to its death benefit. If a…

Company Earnings Guidance Explained: What It Is and How It Affects Investors What is company guidance? Company guidance is a forward-looking forecast that public companies share about expected earnings, revenue, spending, or other financial metrics for an upcoming period—typically the next quarter or fiscal year. It helps analysts and investors set expectations and adjust valuations,…

Guerrilla Marketing: What It Is and How to Use It Guerrilla marketing uses unconventional, low-cost tactics to create buzz and engage a target audience. It emphasizes creativity, surprise, and word-of-mouth sharing—often amplified by social media—to make a small effort have outsized reach. Key takeaways Relies on unconventional, attention-grabbing tactics rather than large media buys. Works…

What is a guarantor? A guarantor is a person or entity that agrees to pay another party’s debt or fulfill an obligation if the primary party (the borrower or tenant) fails to do so. Guarantors back agreements by pledging their own creditworthiness or assets as a secondary source of repayment, but they do not own…

Guaranteed Stock: What It Is and How It Works Key takeaways * “Guaranteed stock” has two distinct meanings: a rare financial instrument in which dividends are guaranteed by a third party, and a retail/inventory term for items a company keeps consistently in stock. * Financially guaranteed stock involves a third party vouching for dividend payments—historically…

Guaranteed Renewable Policy A guaranteed renewable policy is a contract feature that obligates an insurer to continue coverage as long as the policyholder pays the required premiums. Coverage cannot be canceled for individual reasons like changes in health or claims history, but the insurer may raise premiums under the policy’s terms. Key takeaways Guaranteed renewal…

Guaranteed Payments to Partners: A Practical Tax Guide What are guaranteed payments? Guaranteed payments are amounts paid by a partnership to a partner for services or for the use of capital that are made without regard to partnership income or profits. Functionally they resemble a salary: they protect a partner’s cash flow even when the…

Guaranteed Minimum Withdrawal Benefit (GMWB) Key takeaways * A GMWB is an annuity rider that guarantees the ability to withdraw a specified percentage of your invested premiums annually, regardless of investment performance. * Typical guaranteed withdrawal rates vary by contract but are often in the 5%–10% range; some contracts use lower age-based rates (examples below)….