CFA Practice Question

There are 178 practice questions for this topic.

CFA Practice Question

______ buy equity, debt, or trade claims at deep discounts of companies in or facing bankruptcy or reorganization.

A. Directional hedge funds.
B. Event driven funds.
C. Market neutral funds.
Correct Answer: B

A company teetering on bankruptcy doesn't sound like a great investment opportunity, but in many instances it can be - for those who understand distressed securities investing.

User Contributed Comments 3

User Comment
johntan1979 a.k.a. vulture fund
vatsal92 a.k.a. Distressed Debt Investing strategy under Event driven strategy
abeeman924 Check out Third Avenue Focused Credit
You need to log in first to add your comment.