Daffodil International University
Faculties and Departments => Business & Entrepreneurship => Business Administration => Topic started by: munna99185 on June 04, 2015, 03:32:10 PM
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Hedge is making an investment to reduce the risk of adverse price movements in an asset. It is used to reduce any substantial losses/gains suffered by an individual or an organization. An example of a hedge would be if you owned a stock, then sold a futures contract stating that you will sell your stock at a set price, therefore avoiding market fluctuations. Investors use this strategy when they are unsure of what the market will do.
Sayed Farrukh Ahmed
Assistant Professor
Faculty of Business & Economics
Daffodil International University
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thanks sir.