What Is a Horizontal Market? A horizontal market is diversified so that the products created are able to meet the needs of more than one industry. A horizontal market is one in which the output good or service is widely used and in wide demand, and so the producers bear little risk in demand for
What Is a Hold Harmless Agreement? A hold harmless agreement is a clause in a legal contract absolving one party of legal liability for any injuries or damages suffered by another party. It ensures that one party cannot hold the other party legally responsible for any risks incurred from services provided. A business may add
What Is a Holding Company? A holding company is a business entity—usually a corporation or limited liability company (LLC). Typically, a holding company doesn’t manufacture anything, sell any products or services, or conduct any other business operations. Rather, holding companies hold the controlling stock in other companies. Although a holding company owns the assets of
What Are Holding Costs? Holding costs are those associated with storing inventory that remains unsold. These costs are one component of total inventory costs, along with ordering and shortage costs. A firm’s holding costs include the price of goods damaged or spoiled, as well as that of storage space, labor, and insurance. Key Takeaways Holding costs are
What Is a Holding Period? A holding period is the amount of time the investment is held by an investor, or the period between the purchase and sale of a security. In a long position, the holding period refers to the time between an asset’s purchase and its sale. In a short options position, the holding period
What Is the Holding Period Return/Yield? Holding period return is the total return received from holding an asset or portfolio of assets over a period of time, known as the holding period, generally expressed as a percentage. Holding period return is calculated on the basis of total returns from the asset or portfolio (income plus
What Are Holdings? Holdings are the contents of an investment portfolio held by an individual or an entity, such as a mutual fund or a pension fund. Portfolio holdings may encompass a wide range of investment products, including stocks, bonds, mutual funds, options, futures, and exchange traded funds (ETFs). Key Takeaways Holdings are the contents
What Are Holdovers? In finance, the term “holdovers” refers to transactions—usually checks—that have not yet been processed. In most cases today, the period of time in which checks are held as holdovers typically does not exceed one business day. A holdover may also refer to a tenant who remains in a property after the expiration
What Is a Holdover Tenant? A holdover tenant is a renter who remains in a property after the expiration of the lease. If the landlord continues to accept rent payments, the holdover tenant can continue to legally occupy the property, and state laws and court rulings determine the length of the holdover tenant’s new rental
What Is Hollowing Out? Hollowing out is the deterioration of a country’s manufacturing sector when producers opt for low-cost facilities overseas. Taking away these jobs has helped to concentrate wealth among the very wealthy, hollow out the middle class, and increase the number of working-class and lower-class households. Key Takeaways Hollowing out refers to the
