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Q » What is hedging in corporate finance?
06 Dec, 2025
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A » Hedging in corporate finance involves using financial instruments or strategies to offset potential losses from adverse price movements in assets. Companies utilize hedging to stabilize cash flows, protect investments, and manage risks related to currency exchange rates, interest rates, or commodity prices. By doing so, firms aim to maintain financial stability and predictability, ensuring they can focus on their core operations without being overly affected by market volatility.
06 Dec, 2025
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