Does anyone know how preferred stocks work ? Back in February I bought some preferred stock. Each preferred stock was $9.50. I'm just a bit confused on whether or not I would make a profit by converting them into common stock and then selling them. Let's say I bought 100 preferred stocks. That would have been $950 investment. If I were to convert them now. Would they divide the $950 by the current price, let's say $15, which would be 63.33 shares ? Or would they actually still give me 200 common shares ? In the next paragraph you will find what the offering said. I'm just a bit confused on what it means. If anyone knows, could you tell me what it would me for me if I were to convert 100 preferred stocks ?
Each outstanding share of Series B Convertible Preferred Stock is convertible at any time, in whole or in part, at the option of the holders at an initial conversion price of $4.75 per share initially into two shares of Common Stock
