I ve started learning about the market but I dont know what hedge funds are. Please explain
In: 17
They are special investment funds that normally (1) only allow very rich people to invest in them, (2) have very large minimum investments, (3) use high-frequency trading methods (constantly buying and selling stocks and other investments at a very fast rate based on computer algorithms) as opposed to buying a few specific stocks and holding them long-term like a pension fund might do, and (4) pay extremely high salaries to their fund managers.
Latest Answers