The role of this glossary is to present brief definitions of most of the key concepts in economics and finance (in total 1064 names-definitions) as well as security markets (financial, capital, money) with aim the reader to be able to understand and become familiar with the terminology in the analyses that will present in the category economics.
Additionally, we hope that the reader by acquiring intimacy with the economic terminology, he will also love the science/art of economics, giving to it a significant part of his personal time.
In the following glossary we tried to include the most well-known definitions and terms in the field of Economics & Finance. If you still find that a term or definition is missing and you know that it can be included in this glossary, please do not hesitate to contact us via the contact form of our web-site (Contact Us) and the Liberal Globe will edit it and will include it.
Glossary Economics & Finance
There are currently 17 names in this directory beginning with the letter H.
Hedgeis called the protection against the risk.
Hedge ratio or Deltais named the expected change in the value of an option per unit of currency change in the market price of the underlying asset.
Hedgeris called an investor in futures contracts whose primary objective is to counterbalance an otherwise risky position.
Hedgingis called the total of the techniques which is used to protect oneself against foreign exchange fluctuations. In general terms, are any trading techniques which are used to eliminate risk.
High powered moneyis another name that is used for the monetary base.
Historical betais an estimate of security's beta, and it is estimated solely from historical security returns. In graphic, is equal to the slope of the ex post characteristic line.
Historical eventis named an actual historical event that is used in the Historical Event Stress Test with aim to determine the amount of loss (% or unit base) that could occur if the event were to happen again i.e. actual historical events are the 1987 Stock Market Crash (19/10/1987), Mexican-Peso Crisis (14/12/1994), Asian Crisis (2/7/1997).
Historical simulationis called a non-parametric method that uses past data in order to make inferences about the future, i.e. take today's portfolio and revalue it by using past historical price and rates data.
Holding periodis called the period over which an investor is assumed to invest in a given sum of money.
Home made expansionis called the expansion that are driven by autonomous changes in domestic demand.
Homogeneous expectationsis named a condition in which all investors possess the same perceptions about the expected returns, standard deviations and covariances of securities.
Horizon analysisis called a form of active bond management at which is selected a single holding period in order to conduct an analysis and to consider possible yield structures at the end of the holding period. From Horizon analysis those bonds that presented the most attractive expected returns under the alternative yield structures are chosen for selection in the portfolio.
Human capitalis named the term that includes the education, training, and work experience acquired by individuals.
Hume mechanismis named that mechanism-procedure under the gold standard system which used to equilibrate the trade imbalances. A trade deficit (surplus) implies a reduction (increase) in gold and money supply, which in turn will lead to higher (lower) interest rates that leads to increase (decrease) in capital inflows (outflows) and to failing (rising) prices by improving (worsening) the country's competitiveness.
Hyperinflationis named the term which is used to describe periods of extremely high inflation, i.e. when the monthly inflation rate exceeds 50%.
Hypothecation agreementis called the legal arrangement that take place between a brokerage firm and an investor that permits the brokerage firm to initiate that the investor's securities were purchased through the investor's margin account.
Hysterisisis named the failure at which appear certain macroeconomic variables to return to their original values after the passing of the cause that provoke the effect. It is possible temporary changes in certain variables to lead in permanent changes in other variables.
