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LOS o: Discuss distressed securities investing and compare venture capital investing with distressed securities investing.
Q1. Investing in distressed securities and venture capital investing are similar in all of the following ways EXCEPT:
A) a large investment requirement.
B) illiquid investments.
C) heavy involvement by investors.
Q2. A typical distressed security investment strategy would involve purchasing:
A) the debt of a struggling company, with the goal of ending up with an equity position in the reorganized company.
B) the debt of a distressed company, allowing the company to utilize the infusion of capital to avoid bankruptcy.
C) a controlling equity position in a company experiencing financial difficulties and replacing management with a team of turnaround specialists.
Q3. Investing in distressed securities is most similar to investing in which of the following asset classes?
A) Exchange-traded funds.
B) Venture capital.
C) Hedge funds.
Q4. The securities of companies that are either close to bankruptcy or have already filed for bankruptcy protection are called:
A) inactively traded securities.
B) distressed securities.
C) discount securities.
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发表于 2009-2-28 17:58
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