Variable prepaid forward contract

From Infogalactic: the planetary knowledge core
Jump to: navigation, search

Lua error in package.lua at line 80: module 'strict' not found.

A Prepaid Variable Forward contract (PVF) is an investment strategy that allows an investor with a concentrated stock holding to generate liquidity for diversification or other purposes. Additionally, the investor will receive cash in hand without paying the capital gains taxes that would apply to a security disposal.

The PVF allows the investor to receive an up-front payment (typically, 75-85% market value) in exchange for delivery of a variable amount of shares or cash in the future. Since the contract establishes floor and threshold prices that govern how many shares (or cash equivalent) are returned at a given market price, the investor will be protected against downside risk below the floor while enjoying appreciation potential up to the threshold.

See also

References

Lua error in package.lua at line 80: module 'strict' not found.

External links

  • Lua error in package.lua at line 80: module 'strict' not found.
  • Lua error in package.lua at line 80: module 'strict' not found.


<templatestyles src="Asbox/styles.css"></templatestyles>