AI
Sunday, March 31, 2019 5:43:01 PM
"Convertible Preferred Stocks offer the investor a lower interest rate than regular Preferred Stocks, in exchange for the option to convert the Shares into common stocks. Consequently, if the underlying common shares do split, there is a mechanism in the terms of the convertible to adjust the convertibles conversion value accordingly."
https://www.quora.com/Do-preferred-shares-of-stock-split-or-reverse-split-along-with-common-shares
If they convert to common they need to be adjusted as well.....
I saw this happen with another ticker that had preferred that convert to common. The preferred shares adjusted accordingly with the common.
Talk about a serious conflict of interest if a CEO could RS and then keep his rights to convert into 99% of the company. Pretty sure the SEC would have something to say about that.... Simply speculating tho....LOL!!!
https://www.quora.com/Do-preferred-shares-of-stock-split-or-reverse-split-along-with-common-shares
If they convert to common they need to be adjusted as well.....
I saw this happen with another ticker that had preferred that convert to common. The preferred shares adjusted accordingly with the common.
Talk about a serious conflict of interest if a CEO could RS and then keep his rights to convert into 99% of the company. Pretty sure the SEC would have something to say about that.... Simply speculating tho....LOL!!!
