A hearing is a formal procedure in which issues of fact or law are tried, allowing parties to present evidence and arguments. Common in legal and administrative contexts, hearings lead to final decisions or orders.
Hearsay refers to unofficial and unsubstantiated information or gossip, or, in legal contexts, to testimony in court where the witness refers to statements made by others that are presented to prove the truth of the matter asserted.
Heavy industry refers to traditional production industries such as auto manufacturing, steel production, rubber processing, petroleum refining, and raw material extraction, which require massive capital investment and produce large quantities of goods. These industries employ large numbers of workers and often have significant environmental impacts.
A hectare is a metric unit of area measurement widely used in land planning and agriculture, equivalent to 2.471 acres or approximately 107,637 square feet.
A hedge is a financial transaction designed to mitigate the risk of other financial exposures by balancing potential losses with gains in other financial instruments.
An important accounting practice designed to manage the impact of volatile financial instruments on a company's profit and loss account through the use of financial derivatives to hedge against risk.
A hedge fund is a pooled investment fund that employs various strategies to earn active returns for its investors, often exploiting market inefficiencies and anomalies. They are typically subject to fewer regulations and cater to sophisticated, accredited investors.
An action taken to reduce or eliminate the risk involved in having an open position in a financial, commodity, or currency market.
Inherit the estate by statutory law if the ancestor dies without a will (intestate). In a broader sense, those who inherit by will, deed, or operation of law.
The term 'heirs and assigns' is often found in deeds and wills and is used to grant a fee simple estate, indicating that the property being transferred is granted to the heirs and designated assigns of the recipient.
Describes the grounds on which a subsidiary undertaking may be excluded from the consolidated financial statements of a group because the group's interest in the subsidiary is held exclusively with a view to subsequent resale.
Held-for-sale is a classification of non-current assets introduced by the International Accounting Standard 5 (IAS 5), Non-current Assets Held for Sale and Discontinued Operations. Assets classified as held-for-sale must be available for sale in their present condition and the sale is expected to be completed within one year.
Help wanted advertising consists of classified newspaper advertisements by job categories, placed by management seeking potential employees. These ads are crucial economic indicators signaling job opportunities and economic growth.
Hemline Theory is a whimsical idea suggesting that stock prices move in the same general direction as the hemlines of women's dresses. Short skirts are considered bullish, while longer dresses are seen as bearish.
An election to treat a production herd as a capital asset. The election is irrevocable and must be made within two years from the end of the first year of assessment or company accounting period for which the tax liability will be affected by the purchase of the herd.
A heritage asset is a tangible asset deemed historically, artistically, or scientifically significant, often recognized for its cultural or knowledge contribution and distinctive accounting treatment.
The term 'Hertz' has dual meanings in different contexts. The scientific term 'Hertz' refers to the unit of frequency, while 'Hertz' (capitalized) is also known as the largest U.S. automobile rental agency.
Consisting of dissimilar or diverse parts, the term 'heterogeneous' frequently describes organizations involved in selling a wide array of different products.
A heuristic is a strategy or method employed to solve problems more quickly when classic methods are too slow or fail to find an exact solution. It utilizes intelligent trial and error tactics and is often contrasted with algorithmic solutions, which are clearly defined, step-by-step procedures that guarantee a correct outcome.
Hewlett-Packard, more commonly known as HP, is a leading manufacturer of computers and printers, headquartered in Palo Alto, California.
Hibernation is a process where a computer suspends its operations by copying the contents of its memory (RAM) to a disk file, allowing the system to be powered off completely and later powered back on, resuming from the same state without rebooting.
Hidden agenda refers to unannounced objectives, needs, expectations, or strategies of a person or group when participating in an activity. Since individuals keep their agendas secret, one has to rely on minimal clues to determine what others are thinking.
A hidden asset or reserve refers to asset value that is understated on the balance sheet of a company due to accounting conventions or deliberate action by management.
Hidden inflation refers to a subtle price increase implemented by offering a smaller quantity or poorer quality of a product or service with no change in its original price.
Funds held in reserve but not disclosed on the balance sheet, often referred to as off-balance-sheet reserves or secret reserves. Used historically within some UK banking institutions, these reserves are now effectively prohibited due to their potential for earnings manipulation and lack of transparency.
Hidden tax, also known as stealth tax, refers to taxes that are not immediately apparent to taxpayers, creating an indirect financial impact.
A hierarchy is a system where entities are ranked according to levels of importance, authority, or priority within an organization or a structure, often depicted as a pyramid. The CEO stands at the top in a corporate management hierarchy.
A comprehensive analysis and publication on the role and effectiveness of non-executive directors, led by Sir Derek Higgs. The Higgs Report, alongside the Smith Report on audit committees, significantly influenced the Corporate Governance Code revisions in 2003.
High credit refers to the maximum amount of credit that has been extended to a customer or a company within a specific time frame. This can apply both to banking loans and trade credit from suppliers in different financial contexts.
A high flyer refers to a high-priced and highly speculative stock that demonstrates sharp fluctuations in its value over short periods. These stocks are typically associated with unproven high-technology companies and exhibit significant volatility.
A high rise is generally defined as a building that exceeds six stories in height and is appropriately equipped with elevators to accommodate vertical transportation.
High Technology, also known as High Tech, refers to advanced developments and innovations within a specific area of technology. It is predominantly associated with computer-related advancements and the forefront of technological evolution within a given field.
High-Frequency Trading (HFT) involves the use of complex algorithms to trade large volumes of shares at very high speeds. This computerized trading strategy has been associated with sudden market movements and remains a controversial practice despite prevalent regulation attempts.
A bond that receives a high rating for its creditworthiness from leading credit rating agencies, such as Standard & Poor’s (S&P) or Moody's. Typically rated AAA or AA, high-grade bonds are considered low-risk investments that provide reliable returns.
Small businesses designed for the purpose of achieving high growth and rapid profit increases, often leveraging innovative products and strategies alongside investor capital.
A technique used for predicting cost behavior by analyzing the highest and lowest activity levels in a dataset to create a cost function. Though simple, it lacks mathematical rigor and precision.
High-Net-Worth Individuals (HNWIs) are individuals who possess very high net incomes, substantial net assets, or a combination of both. These individuals typically qualify for specialized financial products and services aimed at optimizing their wealth, despite the elevated investment risks involved.
High-Speed Internet Access (HSIA) refers to the ability to access the Internet through a high-speed connection, often necessary for activities such as uploading, downloading, or streaming. HSIA can be delivered via various technologies such as LAN, DSL, cable, or wireless connections.
A high-street bank refers to a major retail banking institution typically found on the main commercial streets of large towns and cities. These banks provide a wide range of financial services to individuals and small to medium-sized businesses.
High-tech stock refers to equity shares of companies operating in high-technology sectors. This includes industries like computers, semiconductors, biotechnology, robotics, and electronics. Such stocks tend to exhibit above-average earnings growth coupled with significant price volatility.
Qualified higher education expenses are necessary for taxpayers or dependents to apply for tax benefits like the American Opportunity Tax Credit, the Coverdell Education Savings Account, and the Lifetime Learning Credit.
A higher rate of income tax is applied to individuals with taxable income exceeding certain thresholds, different from the basic rate of income tax. In 2016-17, it was levied at 40% on income over £32,000, with an additional rate of 45% for income beyond £150,000.
A detailed explanation of the classification of higher-paid employees under UK tax law, encompassing remuneration, benefits, and reimbursed expenses.
The term 'highest and best use' in real estate appraisal refers to the financially, legally, and physically possible use that, at the time of appraisal, is most likely to produce the greatest net return to the land or buildings over a given period.
Brief summaries of financial information often given some prominence in the annual accounts and report of a company. Highlights typically include key metrics such as sales revenue, profits, earnings per share, and dividends for the current and previous financial years.
Highly leveraged situations in business or investments involve financing to a large degree using borrowed money, which raises the stakes in terms of financial risk and the potential for both gains and losses.
Stocks that have hit higher prices in daily trading compared to prices of the past 52-week period. These highs are typically listed in daily newspapers. Technical analysts consider the ratio between new highs and new lows in the stock market to be significant for forecasting stock market trends.
Meeting the standards set by the Health Insurance Portability and Accountability Act of 1996 for electronic data interchange, ensuring the protection and confidentiality of health information.
Hire Purchase (HP) is a method for buying goods in which the purchaser takes possession upon an initial installment payment and gains ownership once all agreed subsequent payments are made.
Hire Purchase (HP) is a type of installment purchase plan where the buyer takes possession of an item immediately and pays for it in periodic installments, while ownership of the item remains with the seller until the final payment is made.
A histogram is a type of bar graph that represents the frequency of data occurrences within certain intervals or bins. It is a fundamental tool in statistics for illustrating the distribution of numerical data.
A historic district is a designated area where the buildings are considered to have significant historic character. This designation makes the area eligible for certain federal assistance programs and protects it from clearance in conjunction with federally sponsored programs.
A historic structure is a building officially recognized for its historic significance. Such structures may qualify for special tax credits aimed at encouraging their preservation and rehabilitation.
A method of valuing units of stock or other assets based on the original cost incurred by the organization, charging the original cost against profits through various means such as FIFO or average cost, and reporting depreciation based on the original cost.
Historical Cost Accounting is a system of accounting based primarily on the original costs incurred in a transaction. Often employed to enhance objectivity, ease of application, and audit verification.
The accounting principle under which assets are recorded and carried in the books of account at their original purchase cost.
A memorandum item in the annual accounts and report of a company giving an abbreviated restatement of the profit and loss account showing the reported profit or loss as if no revaluations had been made.
A voluntary statement appearing in the annual accounts and report of some companies in which the main financial results are given for the previous five to ten years.
Historical Yield refers to the return on investment provided by a mutual fund, typically a money market fund, over a particular period of time. For instance, a money market fund may advertise that its historical yield averaged 4% over the last year.
In a business and internet context, the term 'hit' can refer to both a successful product, service, or person, as well as a visit to a web page. A product may become popular with customers, or an employee may impress a supervisor, constituting a 'hit.' In the digital realm, 'hit' counts measure web traffic to a site.
A group of targeted individuals or organizations identified by a company to be approached for sales presentations or funding requests.
A colloquial term used to describe employees going on strike against their employer, usually as a protest against labor conditions, wages, or other employment terms.
HM Revenue and Customs (HMRC) is the UK government department responsible for the care, management, and collection of direct and indirect taxes, National Insurance contributions, and customs and excise duties within the UK. It was established from a merger of the Board of Inland Revenue and the Board of Customs and Excise in April 2005.
The UK government department responsible for the country's financial policies and management of the economy. It is run by the Chancellor of the Exchequer.
HMRC, or Her Majesty's Revenue and Customs, is the UK government department responsible for the collection of taxes, administration of national insurance, and overseeing various forms of statutory payments.
High Net-Worth Individuals (HNWIs) are individuals with substantial financial assets or investment portfolios. Their significant wealth typically qualifies them for specialized financial services and investment opportunities.
Hoarding refers to the excess accumulation of commodities or currency in anticipation of scarcity and/or higher prices, often leading to market distortions.
A hobby loss refers to losses incurred by a taxpayer in an activity not pursued for profit. Hobby losses are deductible only to the extent of income generated by the hobby. An activity that generates a profit in three of five years is presumed to be operated for profit.
A financial projection model that predicts sharply increasing earnings following a period of modest growth, visually resembling a hockey stick when plotted on a graph.
A hold harmless agreement involves the assumption of liability through a contractual arrangement by one party, effectively eliminating the liability on the part of another party. These agreements are common in scenarios where one entity wants to minimize their risk exposure.
A Hold Harmless Clause is a provision in a contract where one party agrees to protect another party from claims and liabilities that may arise during the execution of the contract. Such clauses are critical for risk management in various business agreements.
In real estate, a holdback refers to a portion of money that is not paid out until certain specified events or conditions have been met. These events could include the completion of a floor loan, the fulfillment of a loan commitment, or retainage on a construction contract.
Holdback pay refers to wages or salary withheld from an employee by the employer until a specific condition is fulfilled. This may happen due to the time necessary for payroll computation or as security against cash advances or tools lent to an employee.
A Holder in Due Course is a holder who has taken a negotiable instrument in good faith for value, without notice of any defect or claim to it. This legal concept is crucial in financial and property transactions to ensure the integrity and reliability of negotiable instruments.
A holder of record is the owner of a company's securities as recorded on the books of the issuing company or its transfer agent as of a particular date.
In commercial and property law, 'holding' refers to property to which one has legal title and of which one is in possession. The term may also refer to the ownership of stocks or shares in corporations.
A holding company is a type of corporation that owns other companies' outstanding stock. Its primary purpose is to own shares of other companies to form a corporate group.
A holding company is an entity that owns other companies' outstanding stock. It typically doesn't produce goods or services itself, instead, its purpose is to own shares of other companies to form a corporate group.
A gain resulting from the length of time an asset has been held rather than its use in the operations of a business.
The holding period is the length of time an investment is owned or expected to be owned. It is critical in determining if a gain or loss from the sale or exchange of a capital asset is long-term or short-term for tax purposes.
A holdout is an individual or entity that refuses to sell an asset or agree to terms in the early stages of negotiation, typically in an attempt to realize a higher price or more favorable conditions.
A holdover tenant is an individual who remains in possession of leased property after the expiration of their lease term. This concept is often associated with tenancy at sufferance.
Holiday pay refers to wages or salary paid to an employee during a period of vacation leave to which they are entitled. It ensures employees enjoy compensated time off from work.
Home banking, also known as e-banking or online banking, refers to the process of carrying out banking transactions via a home computer linked to a bank's system through the Internet. It offers users the convenience to manage banking activities like balance checking and fund transfers from home.
Home equity conversion involves the process of liquidating all or a portion of the equity in one's home. This can be achieved through various financial products aimed at providing the homeowner with cash while retaining the right to live in the home.
A Home Equity Line of Credit (HELOC) is a type of home equity loan that establishes an account the borrower can draw upon as desired, with a maximum outstanding debt limit similar to a credit card.
A home equity loan is a loan secured by a second mortgage on one's principal residence, typically used for non-housing expenses. It gained popularity in the late 1980s due to its tax-deductible interest.
A home loan, also known as a mortgage, is a financing arrangement in which an individual borrows money from a financial institution to purchase residential property.
Home mortgage interest refers to any interest paid on a loan secured by the taxpayer's personal residence, including the principal residence or a second home.
A 'home office' can refer to either the headquarters of a company or an office within a personal residence used exclusively for business purposes. Each carries specific implications, particularly in terms of taxation and business operations.
A home page serves as the initial point of access for a website or a web browser, offering a portal to various contents or functionalities.
A Home Price Index (HPI) is a measure that tracks the changes in residential properties' prices over time. It provides an overview of the housing market's price trends, pegged to a base value rather than indicating average or median home prices in dollar amounts.
The Homebuyer Tax Credit was a limited-time program enacted in 2009 to encourage first-time homebuyers to purchase homes by offering a tax credit of up to $8,000.
The Homeowner Warranty Program (HOW) is a private insurance program designed to protect purchasers of newly constructed homes from structural and mechanical defects, ensuring peace of mind for new homeowners.
A homeowner's equity account is a credit line offered by banks and brokerage firms, allowing homeowners to access the equity built up in their homes. This type of account acts as a revolving credit second mortgage.
An insurance policy designed specifically for homeowners, providing protection against losses caused by common disasters, hazards, theft, and liability. Coverage and costs of homeowner’s insurance policies can vary widely.
A Homeowners' Association (HOA) is an organization of homeowners in a particular subdivision, planned unit development, or condominium. It is generally formed for the purpose of enforcing deed restrictions and managing the common elements of the development.
Homeownership refers to the state of living in a structure that one owns, rather than renting or serving as a tenant. Owning a home provides financial stability and potential asset appreciation over time.
The homeownership rate is the percentage ratio of owner-occupied dwelling units to total occupied dwelling units in an area. In 2010, the homeownership rate for the United States was 66.9%, indicating the proportion of all households owning the home in which they lived.
A homestead refers to a house and the surrounding land that is owned and used as a dwelling. Under modern homestead exemption laws enacted in most states, any property designated as a homestead is exempt from execution and sale by creditors in case of bankruptcy.
