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$3 would make make me a millionaire+. That even possible.
WOW, is that FEMA supplier logo new to the website?
420M .0002’s..... Really????
Question about bid/ask. If for example I want to sell 100,000 shares and the bid is .50 cents with a share size of 25,000. Will only 25000 fill of my 100,000 sell order or do they have to fill all of it but only in 25K increments. Not sure how that all works. Thanks.
Thanks.
Is that 1m on bid I saw.
Stocktake.com says 75.4
If restructuring happens with revenue in the 10's of millions I think it could be a long term hold here. Time will tell.
Appreciate all the feedback folks. Just trying learn how this all works.
Agreed, CNN is a POS news outlet.
Can LVXI get to a penny with such a large A/S and OS? Those numbers are huge. The only way to reduce these numbers is through an R/S correct? Don't beat me up, just asking and learning. I am in this as well.
With Today's volume, A.M. News perhaps?
I'll send this write up to Frank, maybe he can comment.
Agree, Send to TPTW
Awesome, thank you.
Any meaning behind large bid and ask spread?
TPTW putting up a good fight
Almost Happy Hour!!!
Ditto, It needs to be removed!!!!
Maybe its attributed to the article posted this morning.
What does 'Stock Promotion" mean? Wrong to promote a stock? Confusing..
I'm ready to buy 5M more 2's but not when they keep stacking it. Gotta wait I guess.
They Keep stacking 2's. WTF?
just recently wasn't there 9M on the ask at .0027?
Ok, See ya
LOL..LOL. It just hit 3's.
Maybe Emergent is drafting a letter to shareholders.
Is that an approval?
Soon meaning within 38 minutes?
Just got me some 5's. would not fill 4's for me.
T-Mobile appears to have 5G.
Looked like 39's were were dwindling.
Re-bought at .0025, Got lucky finally. Go TPTW
NEWS today on OTC markets website. https://www.otcmarkets.com/stock/TPTW/news
Thanks for posting this jonestint. It was an awesome read. I need to get more shares.
xyz1002, Thank you for posting this. I think It helps clarify things for some people on here including myself that don't know too much about preferred shares.
Some info on issuing preferred shares. Trying to learn this myself.
3 Reasons Companies Issue Preferreds
Companies may issue preferred stocks for a variety of reasons. The three reasons below are the most common.
1. Preferred stock issuances give companies a relatively cheap way to acquire additional capital. The preferred market is dominated by banks and related financial institutions, which are required by regulators to have adequate Tier 1 capital to support their liabilities. Tier 1 capital includes common equity, preferred equity and retained earnings. (Note that as per the recently passed Dodd-Frank Act, cumulative preferred and trust preferred securities will eventually be phased out of their Tier 1 capital status.[1]) Since issuing preferred shares is normally cheaper than issuing common shares and avoids common ownership dilution, banks issue preferred shares to meet the required capital ratio set by regulators.
2. Preferred shares can be used in balance sheet management. Investors often prefer low debt-to-equity ratios, and issuing preferreds can better help to lower the debt-to-equity ratio than issuing debt. A company in need of additional financing may also be required to issue preferred shares instead of debt to avoid a technical default, which could trigger an immediate call on previously issued bonds or an increase in interest rates on those bonds. A technical default may occur when the debt-to-equity ratio breaches a limit set in a currently issued bond covenant.
3. Preferreds give companies flexibility in making dividend payments. If a company is running into cash issues, it can suspend preferred dividend payments without risk of default. Depending on whether the preferred share class is cumulative or non-cumulative, a company may have to pay previously skipped dividend payments before restarting dividend payments in the future.
https://www.indexologyblog.com/2013/11/07/3-reasons-companies-issue-preferreds/
[1] Source: United States. Office of the Comptroller of the Currency, Treasury; and the Board of Governors of the Federal Reserve System. 2013. “Regulatory Capital Rules: Regulatory Capital, Implementation of Basel III, Capital Adequacy, Transition Provisions, Prompt Corrective Action, Standardized Approach for Risk-weighted Assets, Market Discipline and Disclosure Requirements, Advanced Approaches Risk-Based Capital Rule, and Market Risk Capital Rule”.
Contributors:
Phillip Brzenk, CFA
Associate Director, Index Research & Design
Aye Soe, CFA
Director, Index Research & Design
For more on preferreds, read our recent paper, “Digging Deeper Into the U.S. Preferred Market.”
Tagged:
fixed income, preferreds
The posts on this blog are opinions, not advice. Please read our Disclaimers.
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2 thoughts on “3 Reasons Companies Issue Preferreds”
chris wigand
November 7, 2013 at 6:12 pm
good article on preferreds. I was wondering if your familiar with the calls that are attached to the preferreds ? Yesterday wells fargo called there WNA preferred on a special event call in the prospectus . How many of the existing preferreds have these calls . This particular one was a non call until 2022 then 25 par. Looking at the prospectus there is an occurence of a Special Event which may be ” a tax event , An Investment company act event , or a regulatory Capital Event . I’m not a CFA or a Lawyer but which one was this ? I deal with retail and they are furious over this. Maybe an article on that Clause in the prospectus would be beneficial to all. The term caveat emptor seems to shine here.
Reply ?
Aye Soe
November 8, 2013 at 2:20 pm
We don’t keep track of which preferreds have a special events clause in their prospectus. In this case, Wells Fargo stated that the redemption was due to a Regulatory Capital Event (as seen in Form 8-K published on the SEC website) triggered by changes in regulatory capital rules in Basel III. As we mentioned in our paper, certain types of preferred securities will no longer be considered Tier 1 Capital under Basel III so it is possible other financial institutions will follow suit.
Reply ?
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Miccojo, I sent an e-mail to TPTW through their website inquiring about this OS increase and asked them to comment on this if they could. If I get a response I will post it here. I am also a shareholder and would like to know the specifics as well.
What was DOLV share structure?
Custodian. I think this fits. May have to copy and paste the link
https://www.investopedia.com/terms/c/custodian.asp