Shortfall
The amount by which the capital required to fulfill a financial obligation exceeds available capital. Investopedia Says:
Shortfall risk is often combated with an efficient hedging strategy created by a fund, group, institution, or individual. This strategy aims to protect investments from price movements. Hedging helps to ensure that the finances required for a future financial obligation are available. Related Terms:
Deficiency Agreement
Delta Hedging
Earnings
Hedge
Hedge Ratio
Short Selling |