Hedging (See Chapter 15 of the Vernimmen) When an investor attempts to protect himself from risks he does not wish to assume he is said to be hedging. The term “to hedge” describes a general concept that underlies certain investment decisions, for example, the decision to match a long-term investment with long-term financing, to finance a risky industrial investment with equity capital rather than borrowed capital, etc. See also hedging principle. Hedging (See Chapter 15 of the Vernimmen) When an investor attempts to protect himself from risks he does not wish to assume he is said to be hedging. The term “to hedge” describes a general concept that underlies certain investment decisions, for example, the decision to match a long-term investment with long-term financing, to finance a risky industrial investment with equity capital rather than borrowed capital, etc. See also hedging principle. See all terms in the dictionary of finance To know more about it, look at what we have already written on this subject :

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Definitions of terms begining with the same letter as "Hedging" :

Hard capital rationing Hard currency Hedge fund Hedging Hedging principle Herding instinct, herding behavior Hidden assets

Hidden option High-yield bonds Historical equity risk premium Historical value Holdback Holding company Holding company discount

Holding-period return Hostile offer Hurdle rate Hybrid securities Hyperinflationary country