Institutional T/F important, companies, capital, individual

Wendy01

1, ESOPs have been used by companies to liquidate a large block of company stock held by an individual or small group of people.

True or False?


2, An important concern for ESOP participants is that their overall investments (both financial and human capital) reflect adequate diversification.

True or False?

dyga

Soccertom9 Wrote:
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> Can someone tell me where this is in the CFAI
> material? Thx.


It is all taken directly from the institutional investment section. Almost word for word.

IAmNeil

Paraguay Wrote:
-------------------------------------------------------
> Soccertom9 Wrote:
> --------------------------------------------------
> -----
> > Can someone tell me where this is in the CFAI
> > material? Thx.
>
>
> It is all taken directly from the institutional
> investment section. Almost word for word.

Your mem is amazing! I dont recall them at all
Need to take Omega 3 oil

lcai

Aside from the last question... Are those questions LOS questions?? Because I don't really recall any of those... Worries me lol

Windjammer

True, although assets longer in a lot of casualty but varied.
False, long term asset curve.

Did you edit longer to shorter or can I not read right now?



Edited 3 time(s). Last edit at Monday, May 23, 2011 at 10:48PM by Paraguay.

justin88

5-true
6-false , longer maturities(15-20year?) to be tax free

canadiananalyst

true
true
their overall investments (both financial and human capital) reflect adequate diversification.should understand to be should reflect.

Colum

3, Disintermediation can occur when policyholders borrow against the accumulated cash value in insurance products, or the policyholders surrender their cash value life insurance policies for their accumulated cash values.

True or False?

4, Life insurance companies are particularly sensitive to the losses that can result during periods of rising interest rates. In these situations, the existence of valuation reserves alone is sufficient to prevent a write-down of surplus.

True or False?

bodhisattva

3 true
4 false

bpdulog

Paraguay Wrote:
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> bpdulog Wrote:
> --------------------------------------------------
> -----
> > 1. True
> > 2. False - If they were concerned about
> > diversification, why are they in an ESOP in the
> > first place?
>
> The free money part of it is key. Generally if
> you are going to give me money for working
> somewhere I will take it.

Good point, but that seems like a secondary issue.

Their human capital is reliant on their employer, and through the ESOP, so is their financial capital.

NO EXCUSES