Friday, May 16, 2008 Register ∴ Login 
FinancialExams.com
  Search Site
Home Home
0-9 A B C D E F G H I J K L M N O P Q R S T U V W X Y Z Records Per Page:

Collar
Refers to the ceiling and floor of the price fluctuation of an underlying asset. A collar is usually set up with options, swaps, or by other agreements. In corporate finance, the collar strategy of buying puts and selling calls is often used to mitigate the risk of a concentrated position in (sometimes) restricted stock. When the restricted owner can't sell the stock, but needs to diversify the risk, a collar transaction is one of the few tools available. Many corporate executives who receive chunks of their compensation in restricted stock need to employ this strategy to mitigate the diversification risk in their overall portfolio.
Page 1 of 1First   Previous   Next   Last   

ExamSaver Exam Saver CFA,Chartered Financial Analyst CFA Exam CFA Exams Online Exam CFA level 1 CFA Institute 

Tour ∴ Dr Harvey ∴ 2005 White Paper ∴ 2006 White Paper ∴ Guarantee ∴ Downloads
  Copyright © 1998 - 2008 by FinancialExams™ USA, All Rights Reserved
  		   Privacy Statement  Terms Of Use  
CFA Institute does not endorse or warrant the accuracy or quality of the products or services offered by FinancialExams.com™. CFA Institute®, CFA® and Chartered Financial Analyst® are trademarks owned by CFA Institute.