Description

Securities financing and trading strategies includes repos, stock lending, margin loans, and short selling. Learn how these tools support liquidity, leverage, and hedging, and examine special situations like merger arbitrage and takeovers, covering trade setup, risk, and return calculations.

Learning Objectives

  1. Explain the purpose and mechanics of securities financing, including repos, stock lending, and margin loans
  2. Describe how short selling works and identify its benefits, risks, and trade lifecycle
  3. Apply long/short equity strategies and adjust positions for beta to manage market risk
  4. Analyze merger arbitrage and takeover trades, including deal terms, risk factors, and rate of return calculations.