What Does Hedging Mean?

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What does Hedging mean? Read on to discover the definition & meaning of the term Hedging - to help you better understand the language used in insurance policies.

Hedging

Hedging

Hedging is the act of reducing the risk of investing in a company by making additional investments, usually in the stock market. The goal is to diversify investments to ensure that if one investment under-performs, another is likely to make up for it by yielding some profit.

We hope the you have a better understanding of the meaning of Hedging.

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