Finra to issue investor alert on reverse convertibles
The US Financial Industry Regulatory Authority (Finra) is set to issue an investor alert on reverse convertibles, said one of its representatives at a conference in New York on March 23.
The short-term structures pay a monthly coupon and return investor principal in the underlying stock if it has fallen by a certain amount. They have always been a dominant product in the US market, but have been heavily punished by falling equity markets, with the majority returning principal in stock over recent
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