Glossary of Terms

H

Hedging

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.

Holdings

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.

Holding Period

The length of time over which an investment is held.

Hybrids

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).

 


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about the author:

Lorraine Cobcroft

With a background in accounting and financial management, followed by two decades writing software documentation, Lorraine joined the Mclowd team in mid-2016 and is enjoying working with a dynamic team to enhance an innovative product that has the potential to revolutionize the way Australians manage their retirement funding. Lorraine is also an accomplished business writer, ghost-writer, novelist and short-story writer and poet.

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