12-27-2005, 04:23 AM
Hi,
hedging means reducing the risk of loss involved in holding an investment(specially in case of shares).you know whenever someone holds the shares of a company there is chance that the market prices of these shares will fall/rise...if market prices will fall in the future (below holders purchase price) there will be a risk of loss for the investor...to reduce this risk different method are adopted called "hedging"...
in other words you can say that hedging is a type of insurance particular to investment in shares...
Ace
hedging means reducing the risk of loss involved in holding an investment(specially in case of shares).you know whenever someone holds the shares of a company there is chance that the market prices of these shares will fall/rise...if market prices will fall in the future (below holders purchase price) there will be a risk of loss for the investor...to reduce this risk different method are adopted called "hedging"...
in other words you can say that hedging is a type of insurance particular to investment in shares...
Ace
