Event-Driven or Corporate Action Strategy encompasses a combination of investment processes targeting securities which experience a change in valuation due to corporate transactions including bankruptcy, emergence from bankruptcy, mergers, acquisitions, divestitures, stock buybacks, dividend issuance, major shifts in corporate strategy, and other atypical events. These funds attempt to profit from price changes related to a variety of corporate actions, Most strategies involve purchasing or shorting elements of a company’s capital structure and could involve senior debt, junior debt, convertible bonds, preferred stock, or common stock.
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