H

• Hard cap

  The maximum amount of capital that a company is seeking to raise in a crowdfunding campaign.

• Holding company

  A company that owns the shares of other companies and controls their operations.

• Hybrid security

  A single financial security that combines two or more different financial instruments. Hybrid securities, often referred to as "hybrids," generally combine both debt and equity characteristics.

• Holding period

  The amount of time the investment is held by an investor, or the period between the purchase and sale of a security.

• Hostile bid

  Takeover offers taken directly to shareholders because management has rejected the offer.

• Haircut

  The percentage difference between what an asset is worth relative to how much a lender will recognize of that value as collateral. The percentage reduction in the value of collateral accepted by lenders to account for potential declines in value

• Hard asset

  A tangible or physical item or resource that an individual or company owns: such as real estate, commodities, or natural resources.

• Hard Currency

  Refers to money that is issued by a nation that is seen as politically and economically stable. Hard currencies are widely accepted around the world as a form of payment for goods and services and may be preferred over the domestic currency. A globally recognized and stable currency that is readily accepted in international trade.

• Hedge funds

  An investment fund that uses a variety of strategies to generate returns, including buying and selling stocks, bonds, and other securities, as well as using derivatives and other financial instruments.

• Hedging strategy

  An advanced risk management strategy that involves buying or selling an investment to potentially help reduce the risk of loss of an existing position.

• High Net Worth Individual (HNWI)

  A financial industry classification denoting an individual with liquid assets above a certain figure. People who fall into this category generally have at least $1 million in liquid financial assets - an individual with a high level of personal wealth.

• High Water Mark

  The highest peak in the value of an investment fund or portfolio, used to calculate performance fees for fund managers. If the fund is losing money, then the manager has to get it above its high-water mark before receiving a performance bonus.

• High-Yield Savings Account

  A bank account that offers a higher interest rate than traditional savings accounts, providing a higher return on savings.

• Hurdle Rate

  Also called a "Preferred Return", is the predetermined minimum return a fund must generate for investors before the GP (or fund manager) receives distributions of its carried interest. A typical hurdle rate is around 8% but may be higher or lower depending on the strategy and manager reputation.

• High Yield Bond

  A high paying bond with a lower credit rating than investment-grade corporate bonds, Treasury bonds, and municipal bonds.