Haircut   -   1. The difference between prices at which a market maker can buy and sell a security.
2. The percentage by which an asset's market value is reduced for the purpose of calculating capital requirement, margin and collateral levels. The term haircut comes from the fact that market makers can trade at such a thin spread.
When they are used as collateral, securities will generally be devalued since a cushion is required by the lending parties in case the market value falls.

Halloween Massacre   -   Refers to Canada's decision to tax all income trusts domiciled in Canada. In October 2006, Canada's minister of finance, Jim Flaherty, announced that all income trusts will be taxed in a similar manner as corporations at a rate over 30% on taxable income, causing unit holders' values to decrease dramatically virtually overnight.

Hammering   -   The rapid and concentrated sale of a stock thought to be overvalued by the market. It performed by investors and speculators who beleive that prices are inflated and that a period of liquidation is imminent.

Handle   -   The whole dollar price, or stem, of a quote.

Harry Potter Stock Index   -   A collection of stocks from companies related to the "Harry Potter" series franchise. Created by StockPickr, this index seeks to capture some of Harry Potter's success by investing in selected movie producers, merchandisers and advertisers currently associated with the franchise.
The success of the Harry Potter franchise has snowballed since the first of many Harry Potter books, "Harry Potter and the Sorcerer's Stone", by J. K. Rowling, was first published in 1997. With the addition of movies, toys, games and other accessories, Harry Potter has created an industry generating billions of dollars in sales. With each new book edition or movie release, StockPickr believes investors can benefit by investing in companies involved with Harry Potter branded items.

Harvard MBA Indicator   -   A long-term stock market indicator that evaluates the percentage of Harvard Business School graduates that accept "market sensitive" jobs in fields such as investment banking, securities sales & trading, private equity, venture capital and leveraged buyouts. If more than 30% of a year's graduating class take jobs in these areas, the Harvard MBA Indicator creates a sell signal for stocks. Conversely, if less than 10% of graduates take jobs in this sector, it represents a long-term buy signal for stocks.

Heating Degree Day (HDD)   -   The number of degrees that a day's average temperature is below 65^o Fahrenheit (18^o Celsius), the temperature below which buildings need to be heated. The price of weather derivatives traded in the winter is based on an index made up of monthly HDD values. The settlement price for a weather futures contract is calculated by summing HDD values for a month and multiplying that sum by $20.

HedgeStreet   -   An internet-based, government-regulated market that allows traders to perform hedging activities or speculate on specific economic events. Binaries and futures contracts are provided on different markets including commodities, currencies, employment, inflation and other economic indicators.

Herd Instinct   -   A mentality characterized by a lack of individuality, causing people to think and act like the general population.

Hiccup   -   A slang term for a short-term disruption within a longer-term plan, goal, or trend. A hiccup can be used to describe the business actions of a particular company, a stock price downturn, or the stock market as a whole. Generally, a hiccup is not indicative of a larger trend, but is considered an aberration.

High Close   -   A tactic used by stock manipulators; they make small trades at high prices during the final minutes of trading to give the impression that the stock did very well.

High Flier   -   A stock that has seen its share price - and subsequently its valuation - rise to high multiples on metrics such as current earnings and current sales. Usually, the rise will happen quickly, with the stock well outpacing the gains in the overall market during the same time period. Also, higher levels of volatility are usually found in high-flying stocks to go along with frequent spikes in trade volume.

Hindenburg Omen   -   A technical indicator named after the famous crash of the German airship of the late 1930s. The Hindenburg omen was developed to predict the potential for a financial market crash. It is created by monitoring the number of securities that form new 52-week highs relative to the number of securities that form new 52-week lows - the number of securities must be abnormally large. This criteria is deemed to be met when both numbers are greater than 2.2% of the total number of issues that trade on the NYSE (for that specific day).

Hit The Bid   -   A buzzword used to describe an event where a broker agrees to sell at a bid price quoted by another broker. The broker is ultimately agreeing to sell a given stock at the highest price that another broker is willing to buy at.

Hockey Stick Bidding   -   An anti-competitive bidding practice of a market participant (or trader) offering an extremely high price for a small portion of a good.
The name derives from the price curve of this practice, which resembles a hockey stick.

Home Debtor   -   An individual who holds a large mortgage with little or no equity in the home. The term "home debtor" is often used to describe those who will likely never be able to pay off their mortgage because of the costs associated with home ownership, such as property taxes, mortgage payments, insurance and necessary repairs.

Honcho   -   A slang term describing the leader or person in charge of an organization.

Hot Money   -   Money that flows regularly between financial markets in search for the highest short term interest rates possible.

Hounding Analysts   -   A slang phrase that refers to the relentless phone calls that some hedge fund managers make to analysts in an attempt to persuade the analysts to change their rating on a stock.

Housing Starts   -   The number of residential building construction projects that have begun during any particular month.

Hub and Spoke Structure   -   An investment structure in which several investment vehicles, while each remaining individually managed, pool their assets together by contributing to one central investment vehicle. The smaller investment vehicles are referred to as the "spokes" and the central investment vehicle is referred to as the "hub".
This is also called a "master-feeder structure".

Hurdle Rate   -   The minimum amount of return that a person requires before they will make an investment in something.

Hyperinflation   -   Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is a situation where the price increases are so out of control that the concept of inflation is meaningless.

Hypermarket   -   A retail store that combines a department store and a grocery supermarket. Often a vary large establishment, hypermarkets offer a  large variety of products such as appliances, clothing and groceries.