See: Security

Holder of Record
Owner of a company's securities that is recorded on the books of the issuing company or its transfer agent as of a specific date--called the "record date." For example, dividend and stock splits always specify whether they are payable to holders as of the record date.

See: Dividend; Holder; Record Date; Stock Split; Transfer Agent

Holding Period
Length of time an asset is held by its owner. It determines whether a gain or loss is considered short term or long term.

See: Holder; Long Term; Short Term

Home Run
Large gains obtained by an investor in a short time period. For example, an investor who aims to hit a home run may look for possible takeover candidates as most takeover bids result in sudden price rises. Such investing strategies are intrinsically more risky than the strategy of holding for the long term.

See: Risk; Risk/Reward Ratio; Takeover

Horizontal Price Movement
A security's price movement within a narrow range over extended time periods--also called "sideways price movement."

See: Flat Market; Sideways Market

Horizontal Spread
Options strategy--also known as a "calendar spread"--that includes buying and selling the same number of options contracts with the same exercise price, but with maturity dates that are different. The investor hopes to profit by price moves in the underlying security.

See: Calendar Spread; Exercise Price; Maturity Date; Options

Hot Issue
A new security issue that trades at an immediate premium above its fixed public offering price. In other words, the secondary market price on the initial sale date is above the new issue's offering price. It is caused by great public demand for more shares than are available.

See: Initial Public Offering; Secondary Market; Underwrite

Hot Money
Investment funds seeking high yields that are short term. Borrowers enticing hot money should be ready to lose it when another borrower offers a higher rate.

See: Risk/Reward Ratio; Short Term; Yield

Hot Stock
1: Newly issued stock that rapidly rises in price.

See: Hot Issue

2: Stock that has been stolen.

See: Transfer And Ship

House
1: Firm or individual, as a broker-dealer, engaged in the securities business and/or investment banking and related services.

See: Broker-Dealer; Investment Banker

2: Nickname for the London Stock Exchange.

House Account
Account that is managed by a brokerage firm's main office or by an executive of the firm and not one that is normally handled by a salesperson in the territory. Normally, salespeople do not receive commissions from house accounts, even though the accounts may be in their region.

See: Broker; Commission

House Call
Brokerage firm notification that a client's margin account equity is below the firm's maintenance level. Once the equity declines below that point, the client must deposit additional funds or securities. If the client fails to deliver the required margin, securities in the account will be liquidated to cover the call. Normally, house call limits are higher than the limits set by the National Association of Securities Dealers (NASD) and the exchanges with jurisdiction over these rules.

See: Equity; House Maintenance Requirement; Liquidation; Margin Account; National Association Of Securities Dealers; Sell Out Procedures

House Maintenance Requirement
Brokerage house rules that are internally set in regard to a client's margin account. The required equity level should be maintained by client. Normally, house call requirements are higher than those set by the National Association of Securities Dealers (NASD) and the exchanges with jurisdiction over these rules.

See: House Call; House Rules; Margin Account; Minimum Maintenance Requirement; National Association Of Securities Dealers

House Rules
Securities industry term for an individual brokerage firm's internal rules, policies and procedures regarding the opening and management of clients' accounts and the clients' activities in such accounts.

See: House Call; House Maintenance Requirement

Hulbert Rating
Ratings of different investment advisory newsletters that are published by "Hulbert Financial Digest." The "Digest" ranks the performance of the newsletters by totaling the profits and losses that would have been incurred if one followed the individual newsletter's recommendations.

See: Rating

Hung Up
Term describes the position of an investor whose security's value has declined below the purchase price.

Hybrid Annuity
Annuity offered by an insurance company that permits investors to combine the benefits of both fixed and variable annuities--also called "combination annuity." The amount placed in the fixed portion will provide a specified rate of return while the variable portion offers a chance for higher returns (and risks) through the investment in securities.

See: Annuity; Fixed Annuity; Risk/Reward Ratio; Variable Annuity

Hypothecation
Pledging of securities to a brokerage firm as collateral for margin loans made to purchase securities or to cover short sales.

See: Collateral; Margin Agreement; Selling Short