Glossary

Below are some of the most used terms and definitions in the world of banking, finance and investment.

Hard Skills

Specific, teachable abilities that can be defined and measured. By contrast, soft skills are less tangible and harder to quantify. Examples of hard skills include job skills like typing, writing, math, reading and the ability to use software programs; soft skills are personality-driven skills like etiquette, getting along with others, listening and engaging in small talk. In business, hard skills most often refer to accounting and financial modeling.

Hedge Fund

An aggressively managed portfolio of investments that uses advanced investment strategies such as leveraged, long, short and derivative positions in both domestic and international markets with the goal of generating high returns (either in an absolute sense or over a specified market benchmark).

Legally, hedge funds are most often set up as private investment partnerships that are open to a limited number of investors and require a very large initial minimum investment. Investments in hedge funds are illiquid as they often require investors keep their money in the fund for at least one year."

Hedging

Making an investment to reduce the risk of adverse price movements in an asset. Normally, a hedge consists of taking an offsetting position in a related security, such as a futures contract.