health savings account: A tax-sheltered account that qualifying taxpayers can set up to accumulate funds to pay out-of-pocket medical expenses tax-free.

hedge: A buy or sell agreement for a future date that protects the holder against price fluctuations.

heir: A person who receives property from the estate of a deceased person.

held-to-maturity securities: Debt securities purchased by an investor with the intent of holding the securities until they mature.

historical cost: The dollar amount originally exchanged in an arm's-length transaction; an amount assumed to reflect the fair market value of an item at the transaction date.

historical exchange rate: The exchange rate that existed on the date of a transaction.

holding company: A company that owns stock in and manages the activities of other companies. To gain tax advantages, the holding company must own 80% of the voting stock of the other company.

holding period: For income tax purposes, this is the period of time you are considered to have owned an asset, usually from the date of purchase to the date of sale. In the case of property received as a gift, your holding period includes the holding period of the donor as well. Your holding period is used to determine whether you receive short-term, or the more favorable long-term, tax treatment when you sell an asset.

home equity loan: Credit made available by lenders to homeowners whose property is worth more than their current debt against it. For example, a home with a fair market value of $200,000 may have a mortgage against it for $120,000. Mortgage lenders in most states will be willing to make a second loan based on the $80,000 of equity. The amount of the loan will depend on good lending practices, regulations, and the homeowner's ability to repay the loan.

horizontal analysis of financial statements: A technique for analyzing the percentage change in individual income statement or balance sheet items from one year to the next.