Anyone here an economics person? Options

[Dogmeat]

I just looked up "Hedge Fund" on Wikipedia ...

I realize that I know absolutley nothing about economics, so I was trying to learn something:

http://en.wikipedia.org/wiki/Hedge_fund

I was like "wow so this is how a psychologist feels when they read an engineering manual" ... haha

What the fuck is all that?

[nickluto]

Im an econ major. From what i understand about hedge funds are that they are investments that major corporations use to "hedge" against losses in principal markets (such as economic downturns or inflation).

You have to get a certificate in the US for the fund that requires you to make a certain amount of money and have a lot of very smart investment people in your firm because they are pretty risky, but have huge payoff.

Once companies throw their money in a hedge fund, they are usually required to keep it in for a certain period of time...mostly 1 year. This keeps the fund more stable from economic fluctuations of the business cycle.

Corporations invest in hedge funds to pad or protect against bear markets, inflation, slow business forecasts, and other types of investment risks.