Week 4 Course Project Your Name. ACCT540 Professional Research in Accountants Jim Racic 1/28/2016

Hedging strategies are applied to mitigate risks in an uncertain marketplace. With the way that prices can fluctuate based on local or foreign commodities causes companies to hedge at the best possible rate. The dictionary states hedging strategies involve making counterbalancing investments in order to avoid a loss (Dictionary, 2015). For futures markets, hedging would be having a position that would be the opposite of the companys current stance. A gain or a loss in the market can be followed by the countering effect in the futures market because the markets move up and down together in a trending pattern. A hedging strategy is common for crop or livestock...