1. A hedge fund is a fund that sells some stocks short, and buys other stocks long; with this technique, the overall value of buying and selling balances out, thereby eliminating heavy losses due to large market .......... .

2. The term hedge fund refers to the practice of balancing out transactions to ensure that a profit can still be made in any market turning, which distinguishes them from the .......... of other fund strategies that sprang up at the beginning of the 21st century.

3. Profit gains in a hedge fund rely on the choosing of appropriate stocks and acting on them at the most .......... moment.

4. Stock pioneer Alfred Winslow Jones used borrowed money to .......... his funds with additional capital (leverage), and charged an incentive fee to his customers to place their money in his fund.

5. For the most part, the term hedge fund now refers to any mostly unregulated fund using .......... methods of investing.

6. Some common hedge fund strategies include trading stock options and bonds, the purchase or sale of highly undervalued securities, and .......... .

7. Unlike mutual funds, hedge funds are very .......... regulated, and so can keep their actions relatively secret.

8. This secrecy makes it difficult to predict actual numbers for hedge funds, but estimates for 2003 were over US $650 billion .......... hedge fund management.

9. Hedge funds are subject to the same prohibitions against fraud as are other market participants, and their managers have the same .......... duties as other investment advisers.

10. Only accredited investors and qualified purchasers may invest in them — those who have incomes of over $200,000 per year or a net .......... of over $1 million, or those who already have at least $5 million in investments.