Secured Loans
identical terms. Most often used if a corporation has an immediate need for
equity capital and has a currently low tax rate, and thus expects either or both
conditions to change. This would make the debenture less attractive due to the
interest tax deductibility being lost.
Exchangeable instrument
Mainly applies to convertible securities. Bond or preferred stock, exchangeable
into the common stock of a different public corporation (i.e., Spin off).
Exchangeable Security
Security that grants the security holder the right to exchange the security for the
common stock of a firm other than the issuer of the security.
Exchange controls
Governmental restrictions on the purchase of foreign currencies by domestic
citizens or on the purchase of the local domestic currency by foreigners.
Exchange fund (also known as Swap fund)
Investment vehicle introduced in 1999 which appeals to wealthy investors with
large holdings in a single stock who want to diversify without paying capital gains
taxes. These funds allow investors to exchange their stock for shares in the
diversified portfolio of stocks in a tax-free transaction
Exchange of assets
Acquisition of another company by purchase of its assets in exchange for cash or
stock.
Exchange offer
An offer by the firm to give one security, such as a bond or preferred stock, in
exchange for another security, such as shares of common stock.
Exchange of stock
Acquisition of another company by purchase of its stock in exchange for cash or
shares.
Exchange rate
The price of one countrys currency expressed in another countrys currency.
