Securing one company's assets by a pledge of another company's shares. This tactic, made famous by Enron, enables a troubled company to use another company's shares to conceal its financial weakness. A price swap derivative dilutes the value of the securing company's stock and exposes both companies to the danger of financial collapse.
Related information about price swap derivative:
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A derivative transaction in which one party guarantees a fixed value for the total asset holdings of an entity over a certain period of time. Under a price swap ...
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Price Swap Derivative An obligation made by one company to secure the declining value of another company's assets through the commitment of shares.
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Definition of price swap derivative: Securing one company's assets by a pledge of another company's shares. This tactic, made famous by Enron, enables a ...
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Price Swap Derivative An obligation made by one company to secure the declining value of another company's assets through the commitment of shares.
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Definition of currency swap: Agreement to exchange one currency with another, at a specific rate of exchange.
- Financial Terms P
Price Swap Derivative - An obligation made by one company to secure the declining value of another company's assets through the commitment of shares.