Dilution or Concentration Event - Equity Derivatives Provision: Difference between revisions

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{{a|eqderiv|}}There is no such definition in the {{eqdefs}}, but there should be, for variations on the unwieldy phrase “a diluting or concentrative effect on the theoretical value of the relevant Shares” appear seven times in the {{eqdefs}}.  
{{a|eqderiv|}}There is no such definition in the {{eqdefs}}, but there should be, for variations on the unwieldy phrase “a diluting or concentrative effect on the theoretical value of the relevant Shares” appear seven times.  


The issue is this: you strike an equity swap at a given price, reflecting the prevailing capital value of the shares in question, but expressed by reference to a ''number'' of Shares: say, 1,000 Tesla shares.  
The issue is this: you strike an equity swap at a given price, reflecting the prevailing capital value of the shares in question, but expressed by reference to a ''number'' of Shares: say, 1,000 Tesla shares.