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SEC Adopts Final Rules for Disclosure of Hedging Policies
Meridian Compensation Partners, LLC
[Guidance Overview] Dec. 27, 2018
"The final rules provide the following illustrative list of hedging transactions: prepaid variable forward contracts, equity swaps, collars and exchange funds. However, in the release to the final rule, the SEC notes that the term 'hedge' should be broadly applied to cover any financial transactions that are designed to hedge or offset any decrease in market value of the company's equity securities."
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