tailieunhanh - INVEST SAVE GROW: INVESTMENT STATEMENT FOR THE PURPOSES OF THE SECURITIES ACT 1978

These are the questions addressed in this paper. Using a rich data set that enables us to measure both the amount and the precise characteristics of executive stock option holdings, we examine the connection between the risk-taking incentives of stock options and various measures of firm risk. We find that controlling for other effects, CEOs with option holdings that are large relative to their wealth and whose value is sensitive to stock-price volatility tend to increase the volatility of the firms they control. One method for increasing stock volatility which managers employ is to increase firm leverage: We find a positive and significant relation. | Smartshares CONTENTS I. IMPORTANT INFORMATION 4 II. ABOUT SMARTSHARES 7 III. BENEFITS OF SMARTSHARES 8 IV. HOW DO I APPLY 10 V. THE NZX 10 FUND smartTENZ 12 VI. THE NZX MIDCAP INDEX FUND smartMIDZ 14 VII. THE NZX 50 PORTFOLIO INDEX FUND smartFONZ 16 VIII. THE NZX MIDCAP AUSTRALIAN INDEX FUND smartMOZY 18 IX. THE NZX AUSTRALIAN 20 LEADERS INDEX FUND smartOZZY 20 X. ANSWERS TO IMPORTANT QUESTIONS 22 XI. GLOSSARY OF TERMS 50 Presented by Smartshares manager of smartTENZ - NZX 10 FUND smartMIDZ - NZX MIDCAP INDEX FUND smartFONZ - NZX 50 PORTFOLIO INDEX FUND smartMOZY - NZX AUSTRALIAN MIDCAP INDEX FUND smartOZZY - NZX AUSTRALIAN 20 LEADERS INDEX FUND