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Glossary

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Hedge
A strategy used to manage investment risk. In investing, hedging often involves the purchase of an offsetting position, such as a put option or futures contract, to guard against the risk of a market decline.

Heritage Foundation Index - INDEX OF ECONOMIC FREEDOM
The Heritage Foundation Index of Economic Freedom measures the economic freedom of 186 countries based on trade freedom, business freedom, investment freedom, and property rights.

High-Yield Bond
A bond with a below investment-grade credit rating, BB or below. Because these bonds have a higher risk of default, they typically pay a higher rate of interest. Also known as junk bonds.

Hybrid Security
A hybrid security combines two or more different financial instruments. A hybrid security generally combines both debt and equity characteristics.
 

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