The practice of investing in a manner intended to protect against losses in another activity. While hedges reduce potential losses, they can also reduce potential profits. Typical hedges include currency forwards and share and bond futures.
When you initially invest in equities or hybrids, you take a ”holding position”, or become a ”holder” of shares. If you invest through a broker, you will be assigned a Holding Identification Number (HIN). If you invest directly, you will be assigned a Security-Holder Reference Number (SRN).
When you initially take a holding position, you also typically purchase a PARCEL of shares.
Once you have become a ”Holder”, you can purchase further PARCELS at future times, adding to your total HOLDING.
The length of time over which an investment is held.
securities that combine elements of debt securities and equity securities. Examples of hybrid securities are convertible debt securities, preference shares, capital notes and perpetual bonds (bonds that do not have a maturity date).