What Is a Reverse Triangular Merger? A reverse triangular merger occurs when a parent company creates a shell company to acquire a target company. Once the target is acquired, it is absorbed into the parent company as a direct subsidiary. A reverse triangle merger is also known as a reverse […]
Trading Terms
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What Are Hedge Fund Side Pockets? Side pockets are accounts used in hedge funds to separate riskier or illiquid assets from more liquid investments. Typically, once a position enters a side pocket account, only the hedge fund’s present members are entitled to a piece of it. If and when the […]
Selling Short Against the Box Short-selling securities owned by an investor without completing his long position is known as selling short against the box. Gains on equities are countered by losses, resulting in an investor’s neutral position. According to the IRS, selling short against the box is mostly done to […]
What are WM Reuters Benchmark Rates WM Reuters benchmark rates are spot and forward currency rates used as a reference in financial valuations, measurement, and index calculations. FX Benchmark rates are foreign exchange rates that are used as standard rates for portfolio valuation and performance measurement. The WM Reuters Closing […]
Stakeholder vs Shareholder – What Investors Need to Know What is a stakeholder vs shareholder? When it comes to investing in a corporation, there are both. While they have similar-sounding names, their investment in a company is quite different. A stakeholder is anyone who has an interest in the success […]
What are Diagonal Spread Options? Diagonal spread options refers to buying and selling equal amounts of call or put option contracts with different strike prices and expiration dates. In options trading, the strategy is a modified calendar spread involving different strike prices. It is put into play by simultaneously entering […]