What is Hedging explained with an example

joel.francis.7351

Par 100 posts (V.I.P)
What's Hedging?

Learn from this example:

Who is the biggest shareholder of ITC?
-Govt of India @32.51%

They claim that they are Anti-Tobacco.

From the Govt, who is the Biggest Shareholder in ITC
-LIC @14.42%

What does LIC sell?
-(Life insurance)
What does ITC sell?
-(Cancer)

This is called Hedging...
Zindagi ke saath bhi - ITC
Zindagi ke baad bhi - LIC

worth a thought...making bucks both ways..
 
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