I have been under the impression that CONversion of CONvertible preferred does not result in delegended (free-trading) common shares unless they are registered per a reg statement with the SEC.
Do nott CONvertible preferred shares simply CONvert into restricted common stock that is then subject to the holding period (6 or 12 months, depending upon the company being an SEC registrant or nott)?
Yes, that's usually the case. It's the same with convertible notes. If you hold your preferred stock or your convertible note for the required time--six months or one year--you can then get it freed up. All that takes is a tradability opinion written by an attorney. You send it to the issuer and the transfer agent. And also, along with a lot of other paperwork, to your broker. In the case of convertible notes, the holder doesn't convert until just before he intends to sell, for obvious reasons.
