What is the High-Low Index? The high-low index compares stocks that are reaching their 52-week highs with stocks that are hitting their 52-week lows. The high-low index is used by investors and traders to confirm the prevailing market trend of a broad market index, such as the Standard and Poor’s 500 index (S&P 500). Understanding
What Is the High-Low Method? In cost accounting, the high-low method is a way of attempting to separate out fixed and variable costs given a limited amount of data. The high-low method involves taking the highest level of activity and the lowest level of activity and comparing the total costs at each level. If the
What Is a Highly Compensated Employee (HCE)? The Internal Revenue Service (IRS) defines a highly compensated employee (HCE) as one who meets either or both of the following standards: Owned more than 5% of the business at any time during the year or the preceding year, regardless of the amount of compensation received.Received more than
What Is the ACA Health Insurance Marketplace? The Health Insurance Marketplace is a platform that offers insurance plans to individuals, families, and small businesses. The Affordable Care Act (ACA) established the Marketplace as a means to extend health insurance coverage to millions of uninsured Americans. Many states offer their own marketplaces, while the federal government
What is Health Plan Categories Health plan categories refer to the four types of health insurance plans that are differentiated based on the average percentage of healthcare expenses that will be paid by the plan. In the United States, health insurance plans are offered in four actuarial levels: Bronze, Silver, Gold, and Platinum. The level
What is Heating Degree Day – HDD A heating degree day (HDD) is a measurement designed to quantify the demand for energy needed to heat a building. It is the number of degrees that a day’s average temperature is below 65o Fahrenheit (18o Celsius), which is the temperature below which buildings need to be heated.
What Is the Heckscher-Ohlin Model? The Heckscher-Ohlin model is an economic theory that proposes that countries export what they can most efficiently and plentifully produce. Also referred to as the H-O model or 2x2x2 model, it’s used to evaluate trade and, more specifically, the equilibrium of trade between two countries that have varying specialties and
What Is a Home Equity Conversion Mortgage (HECM)? A home equity conversion mortgage (HECM) is a type of reverse mortgage that is insured by the Federal Housing Administration (FHA). Home equity conversion mortgages allow seniors to convert the equity in their homes into cash. The amount that may be borrowed is based on the appraised
What Is a Hedge? To hedge, in finance, is to take an offsetting position in an asset or investment that reduces the price risk of an existing position. A hedge is therefore a trade that is made with the purpose of reducing the risk of adverse price movements in another asset. Normally, a hedge consists
What Is Hedge Accounting? Hedge accounting is a method of accounting in which entries to adjust the fair value of a security and its opposing hedge are treated as one. Hedge accounting attempts to reduce the volatility created by the repeated adjustment to a financial instrument’s value, known as fair value accounting or mark to
