Regulatory arbitrage. It is sometim

Regulatory arbitrage. It is sometimes possible to circumvent regulatory restrictions,
taxes, and accounting rules by trading derivatives. Derivatives are often used, for
example, to achieve the economic sale of stock (receive cash and eliminate the risk of holding the stock) while still maintaining physical possession of the stock. This
transaction may allowthe owner to defer taxes on the sale of the stock, or retain voting
rights, without the risk of holding the stock.