Shearson Financial Network (fka SHSNQ)

[rheddle]

As the book value of the company is well above the market cap based on a share price of 2 cents (Off the top of my head, I think the book value of the company is somewhere between 20 and 35 cents (can't be bothered to double check)), those preferred shares are a useful way of protecting the business against somebody trying to come in and take over the assets of the company, buy buying up shares on the open market.

Granted, the share price would rise pretty quickly if someone backed up the truck and tried to buy 95 million shares, but it is an important buffer nonetheless.

R