Hedge Clause

AAA

DEFINITION of 'Hedge Clause'

A provision included in published financial reports that indemnifies the author, or authors, against any responsibility for any errors, omissions, or oversights contained within the report. Hedge clauses can be found predominately in analyst reports, company press releases and on most investing websites.

A hedge clause is also known as a "disclaimer".

INVESTOPEDIA EXPLAINS 'Hedge Clause'

Investors will find hedge clauses in nearly every financial report published today, and even though they are often glossed over, they are very important for investors to read and understand.

One example is the "safe harbor" provision found in most company press releases. Potential conflicts of interest from, for example, a stock analyst writing a recommendation for one of his own holdings, must also be included in the hedge clause for that report.

RELATED TERMS
  1. Annual Report

    1. An annual publication that public corporations must provide ...
  2. Cook The Books

    A buzzword describing fraudulent activities performed by corporations ...
  3. Auditor's Report

    Recorded in the annual report, the auditor's report tests to ...
  4. Safe Harbor

    1. A legal provision to reduce or eliminate liability as long ...
  5. Disclosure

    The act of releasing all relevant information pertaining to a ...
  6. Rules Of Fair Practice

    A set of rules and regulations developed by the National Association ...
Related Articles
  1. Footnotes: Early Warning Signs For Investors
    Retirement

    Footnotes: Early Warning Signs For Investors

  2. Exploring Advanced Insurance Contract ...
    Home & Auto

    Exploring Advanced Insurance Contract ...

  3. Want To Know What Disclosures Mean ... ...
    Personal Finance

    Want To Know What Disclosures Mean ... ...

  4. An Investor's Checklist To Financial ...
    Options & Futures

    An Investor's Checklist To Financial ...

comments powered by Disqus
Hot Definitions
  1. Elasticity

    A measure of a variable's sensitivity to a change in another variable. In economics, elasticity refers the degree to which ...
  2. Tangible Common Equity - TCE

    A measure of a company's capital, which is used to evaluate a financial institution's ability to deal with potential losses. ...
  3. Yield To Maturity (YTM)

    The rate of return anticipated on a bond if held until the maturity date. YTM is considered a long-term bond yield expressed ...
  4. Net Present Value Of Growth Opportunities - NPVGO

    A calculation of the net present value of all future cash flows involved with an additional acquisition, or potential acquisition. ...
  5. Gresham's Law

    A monetary principle stating that "bad money drives out good." In currency valuation, Gresham's Law states that if a new ...
  6. Limit-On-Open Order - LOO

    A type of limit order to buy or sell shares at the market open if the market price meets the limit condition. This type of ...
Trading Center