Your Free Online Legal Dictionary • Featuring Black’s Law Dictionary, 2nd Ed.

Category: Finance Dictionary

HAWTHORNE EFFECT

How employee motivation is affected by show of concern and change in work conditions. The better the conditions the happier and more efficient the worker. If the manager shows concern the employee

HEALTH MAINTENANCE ORGANIZATION (HMO)

A firm that gives basic long term care through volunteering. All manner of personnel are on the board. They pay a fee that lets them use services. Supplemental services are also offered.

HEDGING

Limited or offsetting the loss from changes in price. It transfers risk without buying insurance.

HERD INSTINCT

A group of investors that are vulnerable to stock prices and sell as a group.

HIGH PRICE STRATEGY

Used when a super premium segment is near the top of a market, a cheaper product is crowding the bottom, and when the scope is a prestige brand.

HIGHLY TOXIC

A chemical swallowed that is lethal or can burn skin in the right concentration. It can also be a mist, dust, or fume if breathed for an hour. It is tested on

HISTORICAL METHOD

A CREDIT RISK exposure computation methodology for SWAPS using historical INTEREST RATES. Under the historical method past interest rate (or swap rate) data is used to create a statistical distribution of rates.

HOLDING PERIOD

1. the time an asset is held by the woner for tax benefits. 2. When a check is held before it is deposited. 3. the time a hotel keeps a room for

HOME DEPOT

A retailer of home improvement products. It allows customers to do it themselves.

HOMEOSTASIS

The ability of the living things in a system to survive despite changes in a limit. Feedback mechanisms make self regulation possible keeping things balanced.

HORIZONTAL CONFLICT

When more competition among retailers occurs. It lowers profit and causes crowding to reduce supply.

HOT SITE

An alternate computer center chat is made available to continue should a disaster occur in the primary lab. Refer to cold site and warm site.

FACILITATOR

A party that helps calm issues but doesn’t offer any content to a project.

FAHRENHEIT SCALE

The temperature scale where water boils at 212 degrees and it freezes at 32 degrees.The Celsius scale is replacing it except in the US.

FALLEN BUILDING CLAUSE

A rule in insurance stating a part of a building collapses due to anything not fire the fire insurance is voided.

FAR OPTION

Investment with no expiration date used with investment with a larger premuim payout.

FAST TRACKING

Doing more to finish a job early. It replaces sequential relationships with parallel ones.

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