In: Finance
a. Convertible loan stock-refers to loans which may be converted into shares at a later date. The lender will receive interest for the duration of the loan .
Companies issue it since it gets the tax deduction of interest, which lowers the cost of capital for a company
B. The weak form suggests that today's stock prices reflect all the data of past prices and that no form of technical analysis can be effectively utilized to aid investors in making trading decisions
C. Funds of Funds-It is fund scheme that invests in other schemes of mutual funds depending upon objective of the investors.
Types of hedge strategies are:-
Convertible Arbitrage-buy the convertible debt of a company and short-sells the stock of the same company.
Distressed Investing-purchase bank loans or high yield debt of companies that are facing potential bankruptcy or restructuring