WorldCom Director Uses Exotic Play to Hedge Stake

Outside WorldCom director, David C. McCourt, uses a sophisticated financial instrument to protect his investment in WorldCom. McCourt swapped his MFS/McCourt stock for WorldCom shares and received portfolio insurance in the form of a "zero-cost collar" which protects Mr. McCourt's investment against any downdraft in WorldCom's stock below $28 over the next five years

The Wall Street Journal Read Article