Hara-Kiri Swap
What is 'Hara-Kiri Swap' An interest rate or cross-currency swap devoid of any profit margin for the originator. The term gets its name from Japanese banks' and securities houses' 1980s strategy of offerings very low rates in order to obtain business. In Japan, hara-kiri is a form of slow ritual suicide; the swaps were dubbed hara-kiri because...
Headline Risk
What is 'Headline Risk' The possibility that a news story will adversely affect a stock's price. Headline risk can also impact the performance of the stock market as a whole. Explaining 'Headline Risk' For example, in the aftermath of the housing crisis, mortgage lenders such as Bank of America, JP Morgan Chase...
Hart-Scott-Rodino Antitrust Improvements Act Of 1976
What is 'Hart-Scott-Rodino Antitrust Improvements Act Of 1976' A U.S. law enacted by President Ford that requires large companies to file a report with the Federal Trade Commission and Department of Justice before completing a merger, acquisition or tender offer so that government regulators can determine whether the transaction would violate antitrust laws. The...
Headline Effect
What is 'Headline Effect' The effect that negative news in the popular press has on a corporation or an economy. Whether it is justified or not, the investing public's reaction to various headlines can be very dramatic. Many economists believe that negative news headlines make consumers more reluctant to spend money. Explaining 'Headline Effect' ...
Hyperinflation
DefinitionIn economics, hyperinflation is very high and typically accelerating inflation. It quickly erodes the real value of the currency, as the prices of most or all goods increase. This causes people to minimize their holdings in that currency as they usually switch to more stable foreign currencies. Prices typically remain stable in terms of other currencies. Hyperinflation An out...
Hamada Equation
Definition Hamada's equation, named after Robert Hamada, is used in corporate finance to distinguish between the financial risk of a leveraged corporation and the business risk of the firm. It integrates the Modigliani-Miller theorem with the capital asset pricing model to form a single equation. It is used to assist in determining the levered beta of a business and, as...
Hanging Man
DefinitionThe Hanged Man is the twelfth trump or Major Arcana card in most traditional Tarot decks. It is used in game playing as well as in divination. Hanging Man What is a 'Hanging Man' A hanging man is a bearish candlestick pattern that forms at the end of an uptrend. It is created when there is a...
Hammering
DefinitionA hammer is a tool or device that delivers a blow to an object. Most hammers are hand tools used to drive nails, fit parts, forge metal, and break apart objects. Hammers vary in shape, size, and structure depending on their purposes. Hammers are basic tools in many trades. The usual features are a head and a handle. Although...
Headline Inflation
DefinitionHeadline inflation is a measure of the total inflation within an economy, including commodities such as food and energy prices, which tend to be much more volatile and prone to inflationary spikes. On the other hand, "core inflation" is calculated from a price index minus the volatile food and energy components. Headline inflation may not present an accurate picture...
Hazard Insurance
DefinitionHome insurance, also commonly called homeowner's insurance, is a type of property insurance that covers a private residence. It is an insurance policy that combines various personal insurance protections, which can include losses occurring to one's home, its contents, loss of use, or loss of other personal possessions of the homeowner, as well as liability insurance for accidents that...