Glossary – Letter H

Healthcare Sector

This includes companies manufacturing healthcare equipment and supplies or providing healthcare services or facilities, and biotechnology and pharmaceuticals research, development or production companies, including veterinary drugs.


A transaction used as a protective manoeuvre intended to reduce the risk of loss from price fluctuations of securities.


The highest price that was paid for a stock during a certain period. For example, the high for the day was $80, but the high for the year was $120.

High watermark

This is the highest net asset value (NAV) that a fund has reached and for which a performance fee was paid. Using a high watermark prevents the fund manager from receiving any performance fees on downside outperformance. It also means that investors do not end up paying performance fees more than once for the same increase in their fund’s NAV (which is something that could otherwise happen in a fluctuating or sideways market).

Holding Company

A company that owns the securities of another company, usually with voting control.

Horizontal spread

Purchasing either a call or put option and simultaneously selling the same type of option with the same strike price but a different expiration month.

Human Resources and Social Development Canada (HRSDC)

A department of the Canadian Federal Government that administers the Canada Education Savings Grant (CESG) and Canada Learning Bond (CLB) programs.


To pledge securities as collateral for a loan.