A type of subsidiary separate from an entity’s other activities and not liable for the parent’s debts. They are often used by derivatives dealers to control exposure to ratings downgrades. Also called special purpose vehicles.

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The CFA Level III exam is the last in the series of three exams conducted by the CFA Institute, and it is held annually in June. Coupled with at least 48 months of relevant work experience, successful completion of the final level yields a charter membership. The CFA Level III exam focuses on wealth planning and portfolio management, and many of the questions are posed in essay form. The exam is divided into two sessions; one in the morning and one in the afternoon. The morning session consists entirely of eight to fifteen essay-style questions (constructed response questions), with... Show more

1. A type of subsidiary separate from an entity’s other activities and not liable for the parent’s debts. They are often used by derivatives dealers to control exposure to ratings downgrades. Also called special purpose vehicles.