Learn

Standard advisory glossary

Textbook finance, M&A, governance, strategy, and organisation terms. Not UNITE and not Layer 4. 147 terms. Textbook meanings only.

AllABCDEFGHIJKLMNOPQRSTUVWXYZ

4 terms. Page 1 of 1.

risk · intro

Hedging

A risk management strategy that involves taking an offsetting financial position to reduce exposure to adverse price movements in an asset, currency, commodity, or interest rate. Common hedging instruments include futures, options, and swaps, and while hedging reduces downside risk it typically also reduces potential upside.

organizational · intro

Hierarchy

An organisational structure in which individuals and roles are ranked according to authority and responsibility, with each level typically reporting to, and receiving direction from, the level above it. Most large organisations rely on some degree of hierarchy to coordinate work and clarify accountability, even as flatter structures have grown more common in some industries.

strategy · intermediate

Horizontal Integration

A strategy in which a company acquires or merges with other companies operating at the same stage of the value chain, typically competitors, in order to increase market share, achieve economies of scale, or reduce competitive intensity within an industry.

ma · intermediate

Hostile Takeover

An acquisition attempt pursued directly against the wishes of a target company's board of directors, typically by appealing straight to shareholders through a tender offer or a proxy fight to replace the board. Target companies facing a hostile approach often deploy defensive measures such as a poison pill to make the acquisition more difficult or costly.