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The reduction happened already. That is why there is only 13 billion shares.
The actual shares will be cancelled by the transfer agent now that they have been converted. The shares could be converted and just held on the companies books (which is what they currently are since the conversion).
How ever there will be new shares held on book and more than there was since the X-preferreds require it. That is also in the details. 7-11 can probably explain that to you. He is a detail person.
Why would he say that? They just stated the number of common shares converted (purchased). The OS is 13 billion.
There is nothing confusing.
What's confusing lol.
Page 4 and 5 show all the X-preferreds that exist, who owns them and what they converted from. Only 1.279 million preferreds come from conversion of 12.79 billion shares (kindly referred to as purchases).
The OS is not 1.2 billion there. That number is the number after the conversion. The conversion of common to preferreds happened awhile ago. The only thing that just happened is the SEC filing. This news is a month old and the current share structure is 13.9 BILLION.
If the current share structure was 13.9 billion minus 12.79 billion then there would have to be more preferreds than the curent release states. There isn't. The only thing this release is announcing is that more debt was converted to x-preferreds not more common.
The OS is not 1.2 Billion. I'm not sure where anyone is getting that. 30 billion minus 13 billion is around 17 billion.
It seems some think that is only 1.2 billion shares because 12 some billion shares have been converted to X preferreds twice. This is not true and mostly most know it.
The latest release is only stating that other convertible debt is also being converted to X-preferreds. The only X-preferreds that are coming from common shares are items 15-19 on the filing. If you look at the total amount of X-preferreds on June 26th release you can tell there is no earlier conversion.
The total amount of shares is over 12 billion not 1.2 billion.
Preferred X have to wait a year to convert. Never claimed it was different. In the meantime they can borrow your shares and short. It's not like they are in short supply. Putting them up for sale would change nothing either.
And the print is actually the same size. It's just not in the headline. The whole thing is only 9 pages long. I never read all of it, I skimmed for the details, takes about 2 minutes.
From the Release
"The “Series X Conversion Price” shall be 85% (Eighty five percent) of the average trading price for the 5 (Five) consecutive trading days"
"Each share shall bear dividends at the rate of $0.05 (Five cents) per share per annum, payable annually."
"The Corporation shall at all times reserve from its authorized Common Stock, one hundred ten percent (110%) of the maximum aggregate number of shares of Common Stock issued or issuable upon conversion of all Series X Convertible Preferred Stock, ignoring any conversion limits set forth herein"
You didn't reduce the share count you increased it.
The common shares are lower and the prefereds increased proportional; PLUS the old interest which was converted to prefereds; and the interest due at the end of the year on all the prefereds. The interest can convert to shares at 85% of the last 5 days trading price. The diluted share count is higher at the moment (from the old interest conversion)) and going to get higher (from the interest due at the end of the year).
The preferred share holders could easily be shorting now with zero fear since they can convert their preferred back to common. But really, why bother converting?
so interest is not waved but converted to preferred which also accrue interest at 5% and can convert into common at 85% of the common price.
Suspended for 6 years on Dec 7, 2017. 6 years is when stocks can get PREMed. FFOG was suspended on Dec 7, 2011.
It might not happen on Dec 7th because the PREM list only comes out once a month. It is a process started in 2003. After a stock is PREMed it is expensive to hold at the DTC. You will find Certificates of destruction here. 126th cycle just happened, only 3 stocks this time.
http://www.dtcc.com/legal/important-notices?subsidiary=DTC&category=Operations&pgs=1
All the BS about how worthless securities can sit in your account is BS. If you want to pay a monthly fee you might be able to make it happen but since only a few idiots try to do it, there is probably no process.
I have posted all the information on PREM before and you can look it up.
Give it more time, you have been waiting a decade already. The smaller brokers probably haven't done it yet.
However, did you actually read the documents? Here are the links again.
http://www.dtcc.com/matching-settlement-and-asset-services/issuer-services/how-issuers-work-with-dtc
https://www.sec.gov/rules/sro/dtc/34-49930.pdf
There are other possibilities; some of the brokers have certificates or they are paying the increased storage charge which is at the option of the broker. If they have some they can't give them to you because they would have to be broken up into the proper amounts and that takes a transfer agent. There might not even be actual certificates because that system is pretty much over.
The book entry you often refer to is called Dematerialization. https://en.wikipedia.org/wiki/Dematerialization_(securities)
Neither Knight or TDA makes 0.0001% of their income on all the stocks like this added up. You take the risk on the stock, not them.
The management at FFGO took your money, it's called Stockholm syndrome.
Two days ago you were sure that worthless shares that haven't traded for over 6 years could not be taken away by the DTC; even though the rule is 14 years old. You also thought that you were entitled to share certificates.
It took me 15 minutes to find the link. Were have you been looking all these years??
Sure your not wrong about anything else?
You don't understand how the new shares come to the market. They are shorted in sometimes and need to be labeled that way. The broker has the certificate so it not naked, but it not necessarily a long trade until the certificate is deposited.
Any real stock the certificate would have just went straight to the DTC, these stocks you trade are not.
It's similar to 'SHORTING THE BOX'. OR shorting naked when you have options to cover. But it's different.
Your information comes from stock boards and your head. Two apparently poor sources.
You have no idea.
If NITE was executing trades for a smaller broker who had the new certificates and not direct market access, the trades would go through as shorts.
They wouldn't go through as a long trade since they wouldn't be able to break up the certificate and the other broker on the other side of the trade wouldn't want it anyway.
Then they would deposit the certificate at the DTC and the appropriate accounts at multiple brokers would get credited. The short is cancelled. It would not show up on the short report and you never know.
The reason this doesn't occur on the regular markets is because a stock with a 100 million shares doesn't get another 100 billion in a year.
How do you think it works?
You have a lack of knowledge, refuse to research or learn and develop conspiracy theories to fill the holes.
It makes no difference whether they are in your name or street.
You should consider reading the entire links I posted.
I think you must get your info from conspiracy stick boards instead of actually reading the actual rules on the sites that actual make them.
When the Stock has not had a transfer agent or traded for 6 years the DTC can tell the brokers they are going to destroy the certificates.
Really, try reading it.
There is also no right to physical delivery of certificates. There was in 1932 and I'm sure that is what 711 will tell you. However that changed and it can be looked up if anyone cared to. Having it marked in your account is considered possession and delivery.
Also if you look on the DTC website they directly say that a broker doesn't have to. The problem with delivering stock when a transfer agent doesn't exist is breaking up large certificates into smaller ones. IF they do even exist there is a fee of up to $500.00 for non-trading stocks.
http://www.dtcc.com/matching-settlement-and-asset-services/issuer-services/how-issuers-work-with-dtc
Physical certificate (most expensive / higher risk)
Holding shares in in the form of a certificate is the more expensive, higher risk option for investors. Physical certificates can be lost, stolen or damaged and replacement costs are high as replacement takes time to complete.
If an investor wants to obtain a physical certificate, securities are withdrawn by their brokerage firm from their account at DTC where the inventory is registered in DTC’s nominee (Cede & Co.) and re-registered into the investor’s name. In many cases brokerage firms and transfer agents charge a fee for issuing and delivering a physical certificate. In some cases, the option for a physical certificate may not be available as an investment firm may refuse requests for a physical certificate or the issuing company may have elected not to issue physical certificates.
Actually they don't sell them off, they destroy them.
Any stock that has not traded and has no transfer agent for 6 years can be since 2003. It has been done to get rid of worthless certificates to save the cost maintaining them.
https://www.sec.gov/rules/sro/dtc/34-49930.pdf
"II. Description
DTC filed this proposed rule change to establish a new service, which DTC calls the Destruction of Non-Transferable Securities Certificate Program. The new service will allow DTC to destroy certain certificates that represent positions in securities for which transfer agent services are not available and have not been available for six years or longer. DTC notes that the issuers of the securities in question are often inactive or insolvent and that the lack of transfer agent services generally renders the certificates non-transferable. The new service will reduce DTC’s custodial expenses for such non-transferable securities and will allow participants to avoid certain fees to which they would otherwise be subject for the ongoing custody of the non-transferable issues. The filing also was to implement a DTC fee increase relating to DTC’s custody of such non-transferable securities that are not designated for destruction by DTC participants, but as noted below the fee increase was implemented in a separate filing on December 23, 2003."