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HDFC:
Housing Development Finance Corporation.
Half-Yearly Results:
It is now mandatory for companies to report summary half-yearly results of their operations to the stock exchange authorities. Many companies also advertise these in newspapers and financial journals. The requirement of reporting half-yearly results seeks to provide investors with more frequent information and thereby a better capability for monitoring the performance of companies as against the earlier system of only the annual results being made public. A word of caution: the half-yearly results are invariably unaudited and in a compressed and summary form. It is not infrequent to find them having undergone considerable modifications by the time the final annual results are announced. It would, therefore, be inadvisable to rely only on half-yearly results for investmentdecision-making. They must be seen in the context of the company's previous full-year results, especially so in the case of companies operating in industries charcterized by sharp seasonalities, e.g.tea companies.
Halfway Rule:
A rule to supplement variable ratio plans (See FORMULA PLANS)which stipulates that no share purchases or sales will be made if prices go above or below the TREND LINE. This rule prevents large trading when the index fluctuates excessively between zones on the same side of the trend line.
Hammering:
Concerted selling of shares by operators to bring the price down, often short-selling heavily. Term associated with bears.
Hand Delivery:
A type of transaction in shares in which delivery by the seller must be made on the date stipulated in the contact, or on another date not beyond fourteen days after the contract.
Hang Seng Index:
Based on the capital value of 33 stocks on the Hong Knog Stock Exchange. Taking its name from Hang Seng Bank, it was first quoted in 1964. 33 stocks, because the bank was founded in 1933, and 33 is a lucky number in Chinese astrology.
Hard Currency:
Currency commonly accepted throughout the world, usually of the western industrialized countries; much valued by SOFT CURRENCY countries for its purchasing power. Hard currency reserves are an important indicator of such countries'trading surpluses.
Hard Money:
Gold or coins as against paper money.
Harden Indicates:
rising prices. See BULL MARKET TERMS.
Havala or Hawala(also Making Up Price):
The rate fixed by the stock exchange for the purpose of working out the liabilities between member-brokers atthe end of the SETTLEMENT PERIOD in respect of unfulfilled contracts in specified securities which are to be carried over to the subsequent period. If members were to try and individually settle all carry over accounts, there would obviously be considerable confusion due to the large number of transactions at varying prices they may have entered into. As such, for determining the liabilities of member vis-a-vis the unfulfilled contracts, the stock exchange decides a rate for each specifiedshare, known as the havala rate, or making-up price. The havala rate is generally fixed at the level of the closing price of the share on the last working day of the settlement period. Havala also means illegal trade in currency exchange, it involves selling of foreign currency at black-market rates; also clandestine transfer of foreign exchange abroad in lieu of Indian currency paid here.
Head and Shoulders:
A pattern in a share price chart with two short bulges on either side and a large one in the middle, resembling the head and shoulder of a person. As the price moves down from the head to the right shoulder, technical analysts see this as a dignal for a futher fall in prices. In the reverse pattern, head and shoulders down, i.e., the head and shoulders forming below the line, when the price in the right shoulder has touched the baseline, the signal is for a continued rise. (Page no 94 Graph)
Heavy Market:
A market with large quantities of shares for sale than there are buy Reducing exposure toers, resulting in falling prices.
Heavy Share:
A high-priced (relative to the market) share which investors are not able to buy in large numbers. These shares are therefore often split, reducing their par value.
Hedging:
Reducing exposure to risk. In the investment of one's funds in the share market, it is done by buying different kinds of shares, so that if one fall in price another wil rise, or investing in different kinds of assets, e.g., shares, debentures, bonds, gold and silver, realestate, etc. Hedging against inflation is putting one's money on assets which will neutralize inflationary increases. Hedging is a feature of the commodities and currency markets where prices are likely to fluctuate. A contract to sell a commodity or a currency over a period of time at a particular price leaves the seller in an open position, exposed to price fluctuations.This open position can be covered by hedging, by the act of buying a FUTURES CONTRACT. A perfect hedge is a no-risk-no-gain precaution.
Hedging Against Inflation:
protecting one's savings from loss of value through inflation(see AppendixE) by investing in such items whose price rises with the general rise in prices. This means fixed income securities are out, equity shares and other items which rise in value are in. Historically, the stock market has always kept pace with inflation.
Hemline Theory:
The theory that stock market prices go up as the hemlines of women's dresses go up and as they go down stock market prices follow suit. Interestingly, this is what happened in the United States. In the 1920s and 1960s women wore short skirts and stockmarket prices were bullish. In the 1930s and 1940s the hemlines came down, so did stock market prices. An amusing theory, but where does the upper line stop? See ASPIRIN COUNT THEORY.
Hot Shares:
1.Shares in great demand. Stolen shares.
HotMoney:
Money which is transferred at short notice from one international financial centre to another for fear of exchangerate fluctuations, or in response to changes in rates of interest. Fear of devaluation often cause such movements,causing the exchange rate to the abandoned currency to fall futher. Also called funk money. Anotherkind of hot money is that which has been acquire dishonestly and must be made to disappear. Also, speculative funds, invested in stocks and bonds, gold, currency, etc.for quick gains.
House Call:
Brokerage firm's call to a customer that he must increase his equity in his margin account, as that has fallen below requirement. This happens when the customer's equity has declined in value, and he must put in additional equity or cash. If the customer defaults, his shares will be sold off.
House Rules:
Varying from one brokerage house to another, there are policies and procedures regarding the opening and handling of clients' accounts and clients' activities in these accounts. These rules are made by brokerage houses to act well within the requirements of stock exchange authorities and often stricter.
Hung Up:
An investor who can't sell his shares because their prices have dropped substantially.
Hype:
Then not uncommon activity of marketing the shares of a company by aggressive publicity, often with the help of brokers, so as to give investors the impression that their investment would appreciate phenomenally and that they would be missing a lifetime's opportunity if they didn't apply for large allotments in as possible. Shares thus promoted are called "hyed up shares'. Examples are some of the mega premium issues floated in 1989, many of which came down drastically in price, sometimes below the issue price.
Hyperinflation:
Swiftly rising prices, at the rate of 50% or more a month. The hyperinflatiotion record is held by Hungary, where in 1945-46 prices rose at an average of 19,800% a month.
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