Mr Cooper Group Inc (COOP)

[radiumsoup]

it wasn't known how much better the preferred class was going to be treated until the 70/30 split was announced. Until then, it was widely believed that the preferred shares would be either paid in full before common equity, or at minimum would receive a known percentage payout as a ceiling of sorts before common shares got paid. Because of this (and because the preferred "face value" was a known portion of the formula) the preferred shares traded at a premium to the commons, as well they should have.

Once the split was established at the mediation and publicized, though, the mathematical targets were set, and the different tickers started to travel towards equilibrium where a dollar spent on any individual stock would return approximately the same amount of money no matter which ticker you purchased. (It took quite a while to reach equilibrium - more than 5 or 6 weeks if I remember correctly.) Once that hit, it wouldn't matter which ticker you threw money at, your percentage return was going to be roughly the same in any case.

/end history monologue