Equity Swaps

 An equity swap is a process in which two cash flows are exchanged

between two parties, of which one represents the returns on a stock or
stock index.
 The other leg of the swap represents cash flow from a moving
money market index or a fixed rate. However, this is not the only
case.
 An equity swap may also be conducted when both cash flows are
from a stock.
 Equity swap is an exchange of future cash flows between parties.

 equity swap is similar to an interest rate swap.

Most equity swaps are shown between large financing firms.

 Commodity Swaps
 Commodity swaps are designed to wind break the risk with the prices of
input resource.

 Commodity swaps are common between individuals or companies that use

raw materials to produce goods.

 A commodity swap allows receipt of payment linked to the commodity

price against a fixed rate.

 The performance of the swaps is realte with performance of asset.