Sunday, December 6, 2015

Another of my classes, my finance class, has been fairly interesting as well. Recently we have been going over different "cases," or real life situations that concern different banks or companies offering products that are related to the class. For instance, the case that I worked on was about Bank of America offering investors what are known as reverse-convertible bonds. These products are bonds that allow the issuer, in this case Bank of America, to convert them to stocks at the day of maturity. This is desirable for Bank of America because if the stocks are worth less than the principal amount that they would have to repay, they make a lot of money off of the product. After analysis of the product, it really is not an attractive product to investors because of the large potential that you could just lose a lot of money if you are repaid in worthless stock. It has been fun to learn about a complicated product and I look forward to doing it more.

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