hedge
/ˈhɛdʒ/
An investment to reduce risk of adverse price movements
hedge in a sentence
“The company hedged against currency fluctuations using futures.”
Origin of hedge
From Old English hecg (fence, boundary); financial sense developed from the idea of protecting or fencing in
Related Words
portfolio
A collection of investments held by an individual or institution
acquisition
The purchase of one company by another
due diligence
Comprehensive appraisal before a business transaction
fiduciary duty
Legal obligation to act in another's best financial interest
insolvency
Inability to pay debts when they become due
collateral
Assets pledged as security for a loan