02-27-2006, 06:57 AM
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well if this is possible then y dnt we found such funds in market despite of such extensive research in financil mkt?
kindly elabrate me y u said that they can only be tradeable in OTC market?
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This is because this is an example of 'structured product' and since there isn't much demand for these securities, they wouldn't be traded on exchanges.
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well i think it is possible but not In benefit of company
how? by doing this co. might lose its share holder. and much concerted debt/equity ratio. which is again bad..
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Increasing debt is not necessarily a bad strategy as it results in tax benefits. As debt and equity are substitutes from capital markets points of view, so an increase of one by of setting another may not be a huge problem. It all depends on case by case basis.
well if this is possible then y dnt we found such funds in market despite of such extensive research in financil mkt?
kindly elabrate me y u said that they can only be tradeable in OTC market?
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
This is because this is an example of 'structured product' and since there isn't much demand for these securities, they wouldn't be traded on exchanges.
<blockquote id="quote"><font size="1" face="Verdana, Tahoma, Arial" id="quote">quote<hr height="1" noshade id="quote">
well i think it is possible but not In benefit of company
how? by doing this co. might lose its share holder. and much concerted debt/equity ratio. which is again bad..
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
Increasing debt is not necessarily a bad strategy as it results in tax benefits. As debt and equity are substitutes from capital markets points of view, so an increase of one by of setting another may not be a huge problem. It all depends on case by case basis.
