Nate's Food Company (NHMD)

[CowboysNation88]

It is similar to a stock split, but there is a difference.

Stock split:

1. takes effect immediately, increasing the O/S.

2. Market value of ones holdings remains the same as the pps is adjusted simultaneously with the issue of new shares.

the preferred:

1. Not all holders of convertibles will convert in a year, some may hold for a higher pps. Therefore the O/S will not increase immediately but in a year or more.

2. the market value of ones holdings increase as the preferreds convert into commons and increases the value of ones portfolio.