Equity swaps can be used for all of the following except:
A)to synthetically buy stock
B)to synthetically sell stock
C)to convert dividends into capital gains
D)to synthetically re-align an equity portfolio
E)none of the above

Question

Quizplus · Accepted Answer

Equity swaps can be used for A, B, and D as they involve synthetically acquiring or disposing of equity holdings or re-aligning a portfolio's equity exposure. However, equity swaps do not convert dividends into capital gains.

Equity Swaps Can Be Used for All of the Following