Hedge funds are pools of money collected together for investment purposes. They’re not regulated by the government, so they’re even riskier than publicly traded stocks, and they’re not open to everyone, usually only “qualified investors,” a term that most of us would define as “wealthy.” Hedge funds can and do invest in just about anything, and can be both long and short at the same time—hence the term “hedging,” or protecting yourself from the risk involved with that investment.
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