Hard Circle

Prospective purchasers of securities in a public offering, listed in the ‘book’ maintained by the lead managing underwriter, who are considered very likely to actually buy shares in the offering. See ‘Book or Syndicate Book’.

Hedge Fund

A private investment fund that invests in a variety of assets, utilising investments and strategies with various long and short exposures and degrees of leverage.

Highly Confident Letter

A letter from an investment bank indicating that it is highly confident that it will be able to raise financing for a transaction, but without legally obligating itself to do so.

Hi-Lo Index

Moving average of the number of stocks that reach new highs and lows each day, used as a technical analysis tool for measuring the strength of the overall market.

Holdback

A contractual condition in which money is withheld until a specified event occurs.

Hot Issue or Hot Stock

A security that quickly rises in price following its initial trading as a result of high market demand.

Hurdle Rate

A rate of return on investment after which economics of the investment are adjusted or capped.