Before the acquisition was publicly announced, Canas not only bought Potash contracts-for-difference-highly
leveraged securities not traded in the U.
of significant
leveraged securities positions, although this risk is
The Tax Court held that a
leveraged securities agreement was not a securities lending arrangement under IRC [section] 1058 since its economic substance indicated the taxpayers' opportunity for gain had been reduced.
Often these firms use margin to buy
leveraged securities.
Hedge funds differ from mutual funds in many ways: They can buy a wider variety of securities; they are restricted to fewer investors; they can try to produce a gain irrespective of whether stock and bond markets are rising or falling; they have not been subject to strict SEC regulations and disclosure requirements (except for the new "funds of funds" discussed in the text of the article); they tend to concentrate their portfolios in fewer investments; they have more leeway to "time" the market; they cannot advertise; they can limit the number of contributions and withdrawals; their compensation method is based on incentive and management fees that usually are much higher than those for mutual funds; and they can invest in long, short and
leveraged securities.
Wiatr, NewMil's Chairman, President and CEO said, "Our net income has continued to increase as a result of growth in earning assets, including
leveraged securities, and continued control of operating expenses.
