What Is the Headline Effect? The headline effect refers to the effect that negative news in the popular press has on a corporation or an economy. Many economists believe that negative news headlines make consumers more reluctant to spend money. Key Takeaways The headline effect refers to the observation that negative news tends to have
What Is Headline Inflation? Headline inflation is the raw inflation figure reported through the Consumer Price Index (CPI) that is released monthly by the Bureau of Labor Statistics (BLS). The CPI calculates the cost to purchase a fixed basket of goods to determine how much inflation is occurring in the broad economy. The CPI uses
What Is Headline Risk? Headline risk is the possibility that a news story will adversely affect the price of an investment, such as a stock or commodity. Headline risk can also impact the performance of a specific sector or the entire stock market. Key Takeaways Headline risk is that a news story will adversely affect
What Is the Head and Shoulders Pattern? A head and shoulders pattern is used in technical analysis. It is a specific chart formation that predicts a bullish-to-bearish trend reversal. The pattern appears as a baseline with three peaks, where the outside two are close in height, and the middle is highest. The head and shoulders
What Is a Head Trader? A head trader is the manager of a trading business, responsible for the positions, risk, and ultimately, the profitability of that business. In a registered securities firm, the head trader supervises all traders and other personnel within their purview and may also trade themselves. Most notably, the head trader is
What Is Health Insurance? Health insurance is a contract between a company and a consumer. The company agrees to pay all or some of the insured person’s healthcare costs in return for payment of a monthly premium. The contract is usually a one-year agreement, during which the insurer will be responsible for paying specific expenses
What Is the Hamada Equation? The Hamada equation is a fundamental analysis method of analyzing a firm’s cost of capital as it uses additional financial leverage, and how that relates to the overall riskiness of the firm. The measure is used to summarize the effects this type of leverage has on a firm’s cost of
What Is a Hammer Candlestick? A hammer is a price pattern in candlestick charting that occurs when a security trades significantly lower than its opening, but rallies within the period to close near the opening price. This pattern forms a hammer-shaped candlestick, in which the lower shadow is at least twice the size of the
What is a Hammer Clause? A hammer clause is an insurance policy clause that allows an insurer to compel the insured to settle a claim. A hammer clause is also known as a blackmail clause, settlement cap provision, or consent to settlement provision. This clause gets its name from the power given to the insurer to force
What Is Hammering? Hammering is rapid and concentrated selling of stock shares in the wake of an unexpected event that is perceived as extremely damaging to the company’s short-term performance. The effect of hammering is a steep drop in the price of the stock. Key Takeaways Hammering is a fast-paced sell-off in a stock, a
