What is a 'hedge fund'? Definition & meaning

More terms

Gross Margin

The difference between a company's revenue and the cost to produce its goods/services, divided by revenue.

Forward pricing

Mutual funds are traded on a forward pricing basis, meaning the price you see will be different to the price you may trade at.

Stock Market

A place where shares of publicly listed companies are traded.

Global Investment Performance Standards (GIPS)

A set of standards which investors use to present their investment results.

Securities

Bonds and stocks.

Nominal amount

The face value of a gilt. It represents the amount that will be repaid to the holder at maturity and is also used to calculate the dividend or coupon payment.

Investment Return

The amount of money made or lost from an investment. Usually expressed as a percentage.

Stock Exchange

A physical/digital place where stockbrokers and traders can buy and sell securities.

Exchange-Traded Fund (ETF)

A collection of investments, pooled into a single fund that can be bought and sold on a stock exchange.

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Hedge Fund