Standard Industrial Classification (SIC)
What is the Standard Industrial Classification (SIC)? The Standard Industrial Classification (SIC) is a four-digit classification system that classifies industries according to business activities. The SIC classification system was created in 1937 to help the U.S. government and government agencies analyze economic activities across the domestic economy. The SIC code assigned to a company was…
House Maintenance Requirement
What is the House Maintenance Requirement? House maintenance requirement refers to the minimum amount of equity that a trader must have in their account to maintain a margin balance. The regulations are set out by Regulation T of the Federal Reserve as a way to protect brokerage firms from losses in the event that traders…
House Call
What is House Call? A house call is an order by a brokerage firm demanding an account holder to increase the margin account’s equity when it is below the requirement. The call is often preceded by losses in the securities bought on margin, which is the credit extended to traders to purchase additional securities. Investors…
Hostile Bid
What is Hostile Bid? A hostile bid is a type of takeover bid where the acquiring company presents a tender offer directly to the shareholders to buy their shares at a premium. The acquiring entity does not go through the board of directors because they rejected the offer or they are against the acquisition. The…
Hot IPO
What is a Hot IPO? A Hot IPO (Initial Public Offering) is a highly anticipated first-time issuance of a company’s shares to the general public in an open market. One or more investment banks can act as underwriters for the offering. The objective of issuing shares through an IPO is to raise money for the…
Hot Hand
What is Hot Hand? Hot hand is a cognitive social bias where an individual believes that a successful past performance can be used to predict success in future attempts. People who believe in the hot hand phenomenon expect a trend to continue in the future. Such a line of thinking is not true since past…
Hidden Values
What are Hidden Values? Hidden values are assets held by companies that are not accurately reflected on their balance sheet. As the valuable assets are hidden, they are also not reflected in the company’s current stock price. Many types of assets can be considered hidden values, such as real estate, natural resources, or customer loyalty….
Home Banking
What is Home Banking? Home banking refers to banking services that can be accessed from home, either through the internet or by phone. Often referred to as online banking, most banks offer digital services that allow customers to conduct various transactions through the internet. They can include viewing account balances, reviewing transactions, making payments, and…
Hospital Insurance Trust Fund
What is the Hospital Insurance Trust Fund? The Hospital Insurance Trust Fund is a federal government program that finances healthcare services for people aged 65 years and older with a history of continuous Medicare contributions. It is also known as Medicare Part A. The health insurance program pays for healthcare services, such as prolonged stays…
