Study Session 4-5: Private Wealth Management
Hello friends. What is this ‘non-voting common stock’? Does it have a nominal value just because there are no voting rights?
Hello friends. I have some questions on short sale against the box.
1) Why would one give away the dividends earned in a long position to a dealer in this strategy?
2) This strategy is more of a delayed outright sale. Is this strategy only pursued in markets which lack a derivatives market?
Have a question regarding establishing short position in stock as outlined under Equity Monetizations tools.
Could somebody explain -
1) Total Return Equity Swap - How money market rate of return (i.e. Rf rate) is being earned on full value of hedged position? Since $100 MM fully hedged value (ABC Corp. example) isn’t actually invested in money market .
What is the definition of accrual equivalent return and how is it calculated?
Why should equation 8 numerator not contain a (1-Tg) at the end to also indicate savings on gift transfer tax?
The errata says delete the first paragraph of the equation. (Really? It explains the new terms). And they have struck through/deleted the first line of next para.
Can someone reconcile the categories? I tried and got most of it by lining up the 2 dimensions, but a few of the descriptions seem fairly off (categories marked with “?”)
Reading 9 (p.109-110) vs reading 10 (p.169-170)
Individualist = individualist
Adventurer = spontaneous
Guardian = methodical?
Celebrity = cautious?
Why would Credit Method be the best possible solution vs Exemption Method
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