Price Swap Derivative

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Dictionary Says

Definition of 'Price Swap Derivative'

An obligation made by one company to secure the declining value of another company's assets through the commitment of shares.
Investopedia Says

Investopedia explains 'Price Swap Derivative'

Made famous by Enron, this method of backing a company's declining assets helps to inflate the value of a troubled company by hiding losses. Furthermore, due to the volatile nature of the stock market, devaluations in price of the securing company directly relates to a commitment of more shares and thus a dilution occurs.

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'Price Swap Derivative'

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    ... default swap (CDS) is a type of credit derivative. ... the reference entity of a credit
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    ... and Macaulay Duration; 14.49 Convexity; 14.50 Price Value of ... Derivatives: 15.1
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  • Iron-Clad Swaps

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    ... not relieve the opacity of the swap market, it ... involved - it gives the banks another
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    ... Gail and Sam decide to swap loans. ... Lenny spins Gail's loan into a credit derivative
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    ... like an option) to enter into the swap. ... understand the risks -counterparty, underlying
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    ... Because derivative contracts are bilateral and reference notional amounts ... we use
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    ... look at swap agreements and the swap market and ... that swaps are very popular derivative
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  • An Introduction To Swaps

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    ... a random or uncertain variable, such as an interest rate, foreign exchange rate,
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  • A Guide To Real Estate Derivatives

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    ... The ability to swap exposures now allows the real estate investor to become ... with
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  • 5 Equity Derivatives And How They Work

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    ... investors can lose money quickly should the price of the ... it can be more difficult
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