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Investing - Theory, News & General • Treatment of QFC (qualified financial contracts) vs financial entitlements during bankruptcy

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A particular online personality I peripherally follow has lately been going on about how stocks/bonds/etc that we generally think we own as part of a mutual fund or ETF are actually financial entitlements rather than qualified financial contracts (QFCs). The main concern, as best as I could understand, is that we would be at a lower priority during bankruptcy liquidation than others who have the QFCs (which I understand to be the paper stock/bond certificates, but I might be mistaken here).

The article below is used to support this idea:

https://scholarship.law.upenn.edu/cgi/v ... cholarship

It's way above my ability to parse. Bing AI / Microsoft Copilot can actually read/analyze the paper simply by including the link in the query, but the responses I got weren't definitive.

Bottom line - is this all BS / misinterpretation / etc?

Statistics: Posted by Ryzan — Sat Mar 23, 2024 10:33 am — Replies 0 — Views 15



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