The anticipated holding period is the duration during which an investment is expected to be held before being sold or liquidated. In real estate limited partnerships, sponsors often define this period for properties in the prospectus.
Computer Hardware encompasses all the electronic and mechanical parts essential for a computer system to function, such as the central processing unit, disk drive, screen, and printer. This term excludes software, which refers to programs and applications.
Habeas corpus is a legal procedure used to determine the legality of an individual's detention or imprisonment. It serves as a critical protection against wrongful detention.
A habendum clause is a section of a deed that specifies the rights and interests being granted to the grantee, beginning with the words 'to have and to hold.'
A person who uses a computer system without authorization, gaining access typically through an Internet connection, often to exploit or manipulate data and systems.
Halal finance refers to financial and banking activities compliant with Islamic law, which prohibits activities involving interest (riba) and certain other unethical practices. It encompasses forms of funding and asset management respecting Sharia principles.
In telecommunications, half duplex is a mode of transmission wherein data can be sent in only one direction at a time. This means that at any given moment, a device can either transmit or receive data, but it cannot do both simultaneously.
Half-life in finance refers to the point in time at which half the principal has been repaid in a mortgage-backed security, including amortization and retirements.
In tax law, the assumption that an asset acquired at any point in the taxable year was placed in service halfway through the year.
Halftone is a printing technique that simulates continuous tone images using dots of varying sizes and spacing. This method is widely used in printing photos and other images in magazines, newspapers, and other print media.
The Halo Effect refers to the cognitive bias where an observer's overall impression of a person influences their feelings and thoughts about that person's specific traits or abilities.
An innovative wage incentive system created by Frederick A. Halsey, designed to enhance worker productivity and address the shortcomings of the piece-rate system.
Hammering the market refers to intense selling of stocks by speculators who believe that prices are inflated and the market is about to drop.
A report issued in 1998 by a committee under the chairmanship of Sir Ronald Hampel, reviewing the implementation of the Cadbury Code and the Greenbury recommendations and combining these into a new Corporate Governance Code.
A handicapped person is an individual who has a physical or mental disability that results in a functional limitation to employment, and/or significantly impairs one or more major life activities.
Handling allowance is a discount or special price offered by a manufacturer to a wholesaler, distributor, or retailer when the manufacturer's product requires special handling. This often compensates for additional work or costs undertaken by the retailer.
A handshake can refer to either a personal physical greeting between two individuals or an exchange of signals between computers or peripherals to establish a communication link.
In real estate brokerage jargon, a handyman special refers to a property that is in need of repairs, often marketed as a fixer-upper. The implication is that the property is a bargain for someone who can accomplish the repairs economically.
The Hang Seng Index (HSI) is an arithmetically weighted index reflecting the performance of the largest companies listed on the Hong Kong Stock Exchange (HKEX).
Hangout refers to the remaining balance of a loan when the term of a loan exceeds the term of the lease of the property securing the loan.
The term 'hard' can be used in various contexts to describe things that are not easily broken or deformed, situations that require significant effort, or facts that are concrete and undeniable.
Historically, coin made of precious metal. Nowadays it may refer to any readily available money, whether paper or metal.
A physical or tangible raw material commonly used in industrial processes and traded on commodity markets.
A hard copy is a printed version of information from a computer, contrasting with the information displayed on a screen.
A currency that is widely accepted around the world for international transactions; typically from Western industrialized countries or prominent regional trading blocs.
A hard disk, also known as a drive, is a computer storage medium that uses rigid aluminum disks coated with iron oxide. Hard disks have much greater storage capacity than removable media such as floppy disks and CDs.
A hard disk, also known as a hard drive or HDD, is a data storage device used to store and retrieve digital information using magnetic storage.
A Hard Disk Drive (HDD) is a data storage device used for storing and retrieving digital information using one or more rigid rapidly rotating disks coated with magnetic material.
Hard dollars refer to actual payments made by customers or investors, in contrast to soft money, which may include tax-deductible amounts or funds that don't need to be paid in full. This term is also associated with hard money, which are loans provided with stricter terms.
Durable merchandise such as televisions, appliances, hardware, furniture, or recording equipment.
A hard hat is a rigid helmet typically worn by workers on a job site, providing essential protection from head-related injuries. Often synonymous with workers who wear them, these helmets are crucial for safety in construction and other hazardous environments.
Hard manufacturing involves the use of fixed production equipment designed for large production runs of similar items, representing significant fixed costs and limited adaptability to new products.
Hard money, also known as hard currency or hard cash, can refer to both stable, highly trusted currencies and to gold or coins as contrasted with paper currency.
Hard sell refers to aggressive sales practices that aim to pressure a customer into completing a transaction quickly.
The hard-core unemployed are individuals who either have never had a full-time job or have been unable to find work over an extended period of time. These individuals are typically disadvantaged due to a lack of education and job skills.
A hardship distribution is a withdrawal from a Section 401(k) plan made due to the distributee's immediate and heavy financial needs, not exceeding the amount necessary to satisfy such needs. Examples include medical expenses, post-secondary education fees, and preventing eviction or foreclosure of a principal residence.
Harmonization involves aligning accounting standards and practices to achieve consistent and comparable financial reporting globally.
A harvesting strategy aims to maximize short-term profits from a product by reducing marketing expenditures and other support, while capitalizing on its established market presence before withdrawing it from the market.
A hash total is a control mechanism used by auditors in computer applications to ensure the accuracy and completeness of data. It involves summing numbers that have no practical meaning to detect discrepancies, such as lost or omitted records during processing.
A hatchet man is a company employee responsible for reducing personnel, often tasked with delivering notices of dismissal and communicating terms of severance.
Haulage refers to the charge made by a haulier (haulage contractor) for transporting goods, particularly by road. Additional charges may apply for loading and unloading large quantities of goods.
The Hawthorn Effect refers to the phenomenon wherein individuals modify or improve an aspect of their behavior in response to their awareness of being observed.
Hazard insurance is a form of insurance that protects property owners against damages inflicted by certain risks, such as fires, storms, and other natural disasters.
In technical analysis of the stock market, 'Head and Shoulders' is a chart pattern that analysts utilize to predict a reversal in the trend of a security's price. Typically, the pattern appears as three peaks: the initial and last peaks are the shoulders, and the highest peak in the middle is the head.
Learn about head leases, a primary lease from which sub-leases can be generated. Understand its implications, examples, and frequently asked questions.
A Head of Household tax filing status applies to unmarried taxpayers who maintain a home as the principal residence for a designated dependent. This status offers a lower tax rate than Single filers and provides significant tax benefits.
The top margin of a printed document, which repeats on every page and can include text, pictures, automatic consecutive page numbers, date, and time.
A headhunter, also known as an executive search firm, is a private employment agency that specializes in the recruitment of professional and managerial personnel. These agencies often charge fees ranging up to one-third of the first year's total salary and bonus package for the job to be filled.
Headline Earnings Per Share (HEPS) is a financial metric provided by the Chartered Financial Analyst Society to give a clearer picture of a company's earnings by including specific trading profits and losses while excluding certain non-recurring events.
Headline inflation measures the total inflation within an economy, encompassing a broad scope that includes volatile items such as food and energy prices, offering an overall picture of price trends in the economy.
A UK government body appointed to oversee the health, safety, and welfare of people at work; protect the public from risks arising from work activities; and control the use and storage of dangerous substances.
A Health Care Power of Attorney grants an individual the authority to make medical treatment decisions on behalf of another person when they are unable to do so themselves. This includes decisions regarding the use of extraordinary life support measures.
A part of the Earned Income Credit that is based on health insurance premiums that provide coverage for one or more qualifying children.
The Health Insurance Portability and Accountability Act of 1996 (HIPAA) includes rules to guard both the privacy and security of personal health information. It provides federal protections for personal health information held by covered entities and stipulates a series of safeguards to ensure the confidentiality, integrity, and availability of electronic protected health information.
A Health Maintenance Organization (HMO) is a type of prepaid group health insurance plan that entitles members to the services of participating physicians, hospitals, and clinics with an emphasis on preventive medicine.
A Health Savings Account (HSA) is a type of savings account that lets individuals save for medical expenses tax-free. This account was established by the Medicare Prescription Drug, Improvement, and Modernization Act, which was signed into law by President George W. Bush on December 8, 2003.
A hearing is a formal procedure in which issues of fact or law are tried, allowing parties to present evidence and arguments. Common in legal and administrative contexts, hearings lead to final decisions or orders.
Hearsay refers to unofficial and unsubstantiated information or gossip, or, in legal contexts, to testimony in court where the witness refers to statements made by others that are presented to prove the truth of the matter asserted.
Heavy industry refers to traditional production industries such as auto manufacturing, steel production, rubber processing, petroleum refining, and raw material extraction, which require massive capital investment and produce large quantities of goods. These industries employ large numbers of workers and often have significant environmental impacts.
A hectare is a metric unit of area measurement widely used in land planning and agriculture, equivalent to 2.471 acres or approximately 107,637 square feet.
A hedge is a financial transaction designed to mitigate the risk of other financial exposures by balancing potential losses with gains in other financial instruments.
An important accounting practice designed to manage the impact of volatile financial instruments on a company's profit and loss account through the use of financial derivatives to hedge against risk.
A hedge fund is a pooled investment fund that employs various strategies to earn active returns for its investors, often exploiting market inefficiencies and anomalies. They are typically subject to fewer regulations and cater to sophisticated, accredited investors.
Inherit the estate by statutory law if the ancestor dies without a will (intestate). In a broader sense, those who inherit by will, deed, or operation of law.
The term 'heirs and assigns' is often found in deeds and wills and is used to grant a fee simple estate, indicating that the property being transferred is granted to the heirs and designated assigns of the recipient.
Held-for-sale is a classification of non-current assets introduced by the International Accounting Standard 5 (IAS 5), Non-current Assets Held for Sale and Discontinued Operations. Assets classified as held-for-sale must be available for sale in their present condition and the sale is expected to be completed within one year.
Help wanted advertising consists of classified newspaper advertisements by job categories, placed by management seeking potential employees. These ads are crucial economic indicators signaling job opportunities and economic growth.
Hemline Theory is a whimsical idea suggesting that stock prices move in the same general direction as the hemlines of women's dresses. Short skirts are considered bullish, while longer dresses are seen as bearish.
An election to treat a production herd as a capital asset. The election is irrevocable and must be made within two years from the end of the first year of assessment or company accounting period for which the tax liability will be affected by the purchase of the herd.
A heritage asset is a tangible asset deemed historically, artistically, or scientifically significant, often recognized for its cultural or knowledge contribution and distinctive accounting treatment.
The term 'Hertz' has dual meanings in different contexts. The scientific term 'Hertz' refers to the unit of frequency, while 'Hertz' (capitalized) is also known as the largest U.S. automobile rental agency.
Consisting of dissimilar or diverse parts, the term 'heterogeneous' frequently describes organizations involved in selling a wide array of different products.
A heuristic is a strategy or method employed to solve problems more quickly when classic methods are too slow or fail to find an exact solution. It utilizes intelligent trial and error tactics and is often contrasted with algorithmic solutions, which are clearly defined, step-by-step procedures that guarantee a correct outcome.
Hewlett-Packard, more commonly known as HP, is a leading manufacturer of computers and printers, headquartered in Palo Alto, California.
Hibernation is a process where a computer suspends its operations by copying the contents of its memory (RAM) to a disk file, allowing the system to be powered off completely and later powered back on, resuming from the same state without rebooting.
Hidden agenda refers to unannounced objectives, needs, expectations, or strategies of a person or group when participating in an activity. Since individuals keep their agendas secret, one has to rely on minimal clues to determine what others are thinking.
A hidden asset or reserve refers to asset value that is understated on the balance sheet of a company due to accounting conventions or deliberate action by management.
Hidden inflation refers to a subtle price increase implemented by offering a smaller quantity or poorer quality of a product or service with no change in its original price.
Funds held in reserve but not disclosed on the balance sheet, often referred to as off-balance-sheet reserves or secret reserves. Used historically within some UK banking institutions, these reserves are now effectively prohibited due to their potential for earnings manipulation and lack of transparency.
Hidden tax, also known as stealth tax, refers to taxes that are not immediately apparent to taxpayers, creating an indirect financial impact.
A hierarchy is a system where entities are ranked according to levels of importance, authority, or priority within an organization or a structure, often depicted as a pyramid. The CEO stands at the top in a corporate management hierarchy.
A comprehensive analysis and publication on the role and effectiveness of non-executive directors, led by Sir Derek Higgs. The Higgs Report, alongside the Smith Report on audit committees, significantly influenced the Corporate Governance Code revisions in 2003.
High credit refers to the maximum amount of credit that has been extended to a customer or a company within a specific time frame. This can apply both to banking loans and trade credit from suppliers in different financial contexts.
A high flyer refers to a high-priced and highly speculative stock that demonstrates sharp fluctuations in its value over short periods. These stocks are typically associated with unproven high-technology companies and exhibit significant volatility.
A high rise is generally defined as a building that exceeds six stories in height and is appropriately equipped with elevators to accommodate vertical transportation.
High Technology, also known as High Tech, refers to advanced developments and innovations within a specific area of technology. It is predominantly associated with computer-related advancements and the forefront of technological evolution within a given field.
High-Frequency Trading (HFT) involves the use of complex algorithms to trade large volumes of shares at very high speeds. This computerized trading strategy has been associated with sudden market movements and remains a controversial practice despite prevalent regulation attempts.
A bond that receives a high rating for its creditworthiness from leading credit rating agencies, such as Standard & Poor’s (S&P) or Moody's. Typically rated AAA or AA, high-grade bonds are considered low-risk investments that provide reliable returns.
Small businesses designed for the purpose of achieving high growth and rapid profit increases, often leveraging innovative products and strategies alongside investor capital.
A technique used for predicting cost behavior by analyzing the highest and lowest activity levels in a dataset to create a cost function. Though simple, it lacks mathematical rigor and precision.
High-Net-Worth Individuals (HNWIs) are individuals who possess very high net incomes, substantial net assets, or a combination of both. These individuals typically qualify for specialized financial products and services aimed at optimizing their wealth, despite the elevated investment risks involved.
High-Speed Internet Access (HSIA) refers to the ability to access the Internet through a high-speed connection, often necessary for activities such as uploading, downloading, or streaming. HSIA can be delivered via various technologies such as LAN, DSL, cable, or wireless connections.
A high-street bank refers to a major retail banking institution typically found on the main commercial streets of large towns and cities. These banks provide a wide range of financial services to individuals and small to medium-sized businesses.
High-tech stock refers to equity shares of companies operating in high-technology sectors. This includes industries like computers, semiconductors, biotechnology, robotics, and electronics. Such stocks tend to exhibit above-average earnings growth coupled with significant price volatility.
Qualified higher education expenses are necessary for taxpayers or dependents to apply for tax benefits like the American Opportunity Tax Credit, the Coverdell Education Savings Account, and the Lifetime Learning Credit.
A higher rate of income tax is applied to individuals with taxable income exceeding certain thresholds, different from the basic rate of income tax. In 2016-17, it was levied at 40% on income over £32,000, with an additional rate of 45% for income beyond £150,000.
The term 'highest and best use' in real estate appraisal refers to the financially, legally, and physically possible use that, at the time of appraisal, is most likely to produce the greatest net return to the land or buildings over a given period.
Brief summaries of financial information often given some prominence in the annual accounts and report of a company. Highlights typically include key metrics such as sales revenue, profits, earnings per share, and dividends for the current and previous financial years.
Highly leveraged situations in business or investments involve financing to a large degree using borrowed money, which raises the stakes in terms of financial risk and the potential for both gains and losses.
Stocks that have hit higher prices in daily trading compared to prices of the past 52-week period. These highs are typically listed in daily newspapers. Technical analysts consider the ratio between new highs and new lows in the stock market to be significant for forecasting stock market trends.
