Hedge (finance)

A hedge is an investment position intended to offset potential losses or gains that may be incurred by a companion investment. A hedge can be constructed from many types of financial instruments, including stocks, exchange-traded funds, forward contracts, options, many types of over-the-counter and derivative products, futures contracts. Public futures markets were established in the 19th century to allow transparent and efficient hedging of agricultural commodity prices. Hedging is the practice of taking a position in one market to offset and balance against the risk adopted by assuming a position in a contrary or opposing market or investment; the word hedge is from Old English hecg any fence, living or artificial. The use of the word as a verb in the sense of "dodge, evade" is first recorded in the 1590s. A typical hedger might be a commercial farmer; the market values of wheat and other crops fluctuate as supply and demand for them vary, with occasional large moves in either direction. Based on current prices and forecast levels at harvest time, the farmer might decide that planting wheat is a good idea one season, but the price of wheat might change over time.

Once the farmer plants wheat, he is committed to it for an entire growing season. If the actual price of wheat rises between planting and harvest, the farmer stands to make a lot of unexpected money, but if the actual price drops by harvest time, he is going to lose the invested money. Due to the uncertainty of future supply and demand fluctuations, the price risk imposed on the farmer, the farmer in this example may use different financial transactions to reduce, or hedge, their risk. One such transaction is the use of forward contracts. Forward contracts are mutual agreements to deliver a certain amount of a commodity at a certain date for a specified price and each contract is unique to the buyer and seller. For this example, the farmer can sell a number of forward contracts equivalent to the amount of wheat he expects to harvest and lock in the current price of wheat. Once the forward contracts expire, the farmer will harvest the wheat and deliver it to the buyer at the price agreed to in the forward contract.

Therefore, the farmer has reduced his risks to fluctuations in the market of wheat because he has guaranteed a certain number of bushels for a certain price. However, there are still many risks associated with this type of hedge. For example, if the farmer has a low yield year and he harvests less than the amount specified in the forward contracts, he must purchase the bushels elsewhere in order to fill the contract; this becomes more of a problem when the lower yields affect the entire wheat industry and the price of wheat increases due to supply and demand pressures. While the farmer hedged all of the risks of a price decrease away by locking in the price with a forward contract, he gives up the right to the benefits of a price increase. Another risk associated with the forward contract is the risk of renegotiation; the forward contract locks in a certain price at a certain future date. Because of that, there is always the possibility that the buyer will not pay the amount required at the end of the contract or that the buyer will try to renegotiate the contract before it expires.

Future contracts are another way our farmer can hedge his risk without a few of the risks that forward contracts have. Future contracts are similar to forward contracts; these contracts are guaranteed through clearinghouses. Clearinghouses ensure that every contract is honored and they take the opposite side of every contract. Future contracts are more liquid than forward contracts and move with the market; because of this, the farmer can minimize the risk he faces in the future through the selling of future contracts. Future contracts differ from forward contracts in that delivery never happens; the exchanges and clearinghouses allow the seller to leave the contract early and cash out. So tying back into the farmer selling his wheat at a future date, he will sell short futures contracts for the amount that he predicts to harvest to protect against a price decrease; the current price of wheat and the price of the futures contracts for wheat converge as time gets closer to the delivery date, so in order to make money on the hedge, the farmer must close out his position earlier than then.

On the chance that prices decrease in the future, the farmer will make a profit on his short position in the futures market which offsets any decrease in revenues from the spot market for wheat. On the other hand, if prices increase, the farmer will generate a loss on the futures market, offset by an increase in revenues on the spot market for wheat. Instead of agreeing to sell his wheat to one person on a set date, the farmer will just buy and sell futures on an exchange and sell his wheat wherever he wants once he harvests it. A common hedging technique used in the financial industry is the long/short equity technique. A stock trader believes that the stock price of Company A will rise over the next month, due to the company's new and efficient method of producing widgets, he wants to buy Company A shares to profit from their expected price increase, as he believes that shares are underpriced. But Company A is part of a volatile widget industry. So there is a risk of a future event that affects stock prices across the w

Annette Chaparro

Annette Chaparro is an American Democratic Party politician who has represented the 33rd Legislative District in the New Jersey General Assembly since she was sworn into office on January 12, 2016. A resident of Hoboken, New Jersey, Chaparro graduated from Hoboken High School and works as a clerk for the City of Hoboken. After the local Democratic Party decided to keep Assemblyman Carmelo Garcia off the primary ballot, a deal was reached in March 2015 between Senator Brian P. Stack, the mayor of Union City, Hoboken Mayor Dawn Zimmer to nominate Chaparro to replace Garcia on the ballot; as a member of the General Assembly, Chaparro has been appointed to serve on the Homeland Security and State Preparedness Committee, the Law and Public Safety Committee and the Transportation and Independent Authorities Committee. Each of the 40 districts in the New Jersey Legislature has one representative in the New Jersey Senate and two members in the New Jersey General Assembly; the other representatives from the 33rd Legislative District for the 2018-2019 Legislative Session are: Senator Brian P. Stack, Assemblyman Raj Mukherji Assemblywoman Chaparro's legislative web page, New Jersey Legislature New Jersey Legislature financial disclosure forms 2016 2015

The Beards (Australian band)

The Beards were an Australian comedy folk rock band which formed in 2005 in Adelaide and disbanded in October 2016. The group played music themed around the virtues of having a beard, they had developed from a four-piece rock band, the Dairy Brothers, which were established in 2003. The Dairy Brothers were a four-piece rock band based in Adelaide, which formed in 2003, performed at local pubs and clubs; the band members were Tom Bettany on bass keytar and vocals, Michael Bidstrup on drums, Joshua Fielder on guitar and Joel McMillan on vocals and keyboard. The Dairy Brothers released a six-track extended play, Full Cream Ahead, followed with a second EP, Got Rock?. Andrew Crosbie of MediaSearch caught a performance in Melbourne in December 2006, "their sound, although not original, is a breath of fresh air into what can be a stale Australian rock scene, they combine the humorous lyrical stylings of Tenacious D with the driving piano of earlier Ben Folds and a guitar sound that shifts through pinnacle elements of rock from the past thirty years, giving a performance that will keep you in a well humoured and merry state of being."

Bettany, Fielder and McMillan formed the Beards in 2005 in Adelaide to play a one-off show. They rose in popularity and developed a cult following with the release of their first album, The Beards, in July 2007; the band played at the Adelaide venue of Big Day Out in 2008 and 2009. They were active in the Adelaide music scene but were unknown beyond their hometown. In 2009 they released a follow-up album, Beards Beards Beards, a music video for "If Your Dad Doesn't Have a Beard, You've Got Two Mums", which received positive acclamations and garnered increased interest online, as well as airtime on Australian Broadcasting Corporation music video program, rage; the Beards travelled to Alaska to perform at the opening ceremony of the World Beard & Moustache Championships. Upon returning to Adelaide, the band began to tour Australia for the first time; the Beards went on to tour Australia extensively, releasing their third album Having a Beard is the New Not Having a Beard and producing video clips for the tracks "Got Me a Beard", "Beard Accessory Store", "You Should Consider Having Sex With a Bearded Man", with the latter single coming 99th place in Triple J's Top 100 list of 2011.

In 2012, "You Should Consider Having Sex with a Bearded Man" was nominated for an APRA Award and the band's third album was nominated for an ARIA Award. In 2013 the band travelled to North America, playing multiple performances at SXSW and Canadian Music Week as well as performing showcase sets in LA, New York and Toronto, they returned to Australia. In May 2013, they embarked on the First World Tour, playing shows in Netherlands, Germany and the UK, where they appeared at the Bearded Theory Festival, before returning home for the Australian leg of the tour. In early 2014, The Beards travelled Europe on the Euro-Bout To Grow A Beard Tour with stops in Britain, The Netherlands and Germany. In Cologne a 90-minute show was recorded for Rockpalast. On 9 May 2014, The Beards released The Beard Album; this coincided with an Australian launch tour, which continued on to Europe in November and December. They stopped again in UK, The Netherlands and Germany with additional stops in France, Sweden and Switzerland.

The Beards released the music video of Strokin' My Beard in July 2015. It consists of footage of their last tour shot by fans in the audience. To celebrate their 10th anniversary as a band, The Beards released a 2-disk compilation/live album Ten Long Years, One Long Beard, featuring never before heard songs and versions, as well as a live concert recording. A new single called "Ten Long Years, One Long Beard" was released with an accompanying music video; the Beards' anniversary tour Ten Long Years, One Long Beard started in September 2015 with stops in Sweden, Germany, The Netherlands and the UK, before returning home to finish the tour in Australia. In 2016, the band members announced their decision to discontinue the band as a live touring act. A Farewell Tour commenced in February 2016, with the final date booked for 28 October at The Governor Hindmarsh Hotel in Adelaide. Bettany recalled, "After cutting our teeth on the local scene following high school and during uni we formed a band called The Dairy Brothers which landed us a Front Bar residency at The Gov.

At the time were so stoked to be playing at The Gov. The Dairy Brothers morphed into The Beards and that became our life for over a decade. Johann Beardraven – lead vocals, keytar, saxophone John Beardman, Jr. – drums Nathaniel Beard – bass guitar, backing vocals Facey McStubblington – guitar, electric guitar, backing vocals "You Should Consider Having Sex with a Bearded Man" "I'm in the Mood... For Beards" "All the Bearded Ladies" "I'm Growing A Beard Downstairs For Christmas" Live at The Beards Club recorded at The Governor Hindmarsh Hotel, Adelaide The Final Show, filmed 28 October 2016 at The Governor Hindmarsh Hotel, Adelaide. If Your Dad Doesn't Ha