CFA Practice Question

There are 139 practice questions for this study session.

CFA Practice Question

A private equity strategy to purchase debt of companies that are filling for Chapter 11 or 7 is called:

A. Mezzanie financing.
B. Distressed investing.
C. Angel investing.
Correct Answer: B

The logic behind this investment is that the company's situation is not as bad as the market believes it to be and either the company will survive or there will be enough money upon liquidation to cover the original investment.

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