The Traderszone Network

Published in TZ Latest News 3 May, 2017 by The TZ Newswire Staff

Separating cash-flow and voting right with options

Hi guys,

I have a question regarding hedging. There is an ongoing discussion whether the existence of multiple share classes with different voting rights is beneficial in a corporate governance sense. However, I was wondering if it was theoretically possible to reproduce the separation of cash-flow rights and voting rights even in case of only a single share class. If I own a share, is it possible to completely hedge the risk so that I solely own the voting right? And how relevant are…

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