Q: While reviewing the purchasing/selling by insiders I noted some transactions as derivative buy or sale by BCE. The type of securities were identified also as "equity swap-long position".
Can you please clarify what the terms "derivative buy" and "equity swap" mean ?
Thank you
Can you please clarify what the terms "derivative buy" and "equity swap" mean ?
Thank you
5i Research Answer:
It is hard to be 100% accurate here, as contracts can differ, but these typically reference 'synthetic' long positons via options. A derivative buy is a call option purchase. The swap is harder to nail down but typically will be an option or stock or combination trade of options that results in a net long or short exposure to the stock.