Are swaps securities? Why is this important?
What will be an ideal response?
Judge Feikens found no support for the argument that the P&G-BT swaps were notes, investment contracts, evidence of indebtedness, instruments commonly known as a security, financial or capital transactions, or options on a security. He ruled that the P&G-BT swaps were not securities as defined by the State of Ohio's Blue Sky Laws or the U.S. Securities Acts of 1933 and 1934, and therefore the swaps were outside the jurisdiction of both the Securities and Exchange Commission and the Ohio State securities law. This decision weakened many of P&G charges because, if swaps are not securities, then the statutory basis on which P&G brought charges against BT was eliminated.
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Indicate whether the statement is true or false.
Under U.S. GAAP, which of the following items would require a lessee to classify a lease of equipment as a capital lease?
a. There is no transfer of ownership to the lessee at the end of the lease term. b. The lease does not contain a bargain purchase option. c. The lease term is 90% of the estimated economic life of the lease property. d. The present value of the contractual minimum lease payments is 75% of the fair value of the leased property.