They will be paid par and can then use their par money to buy commons which will be expensive by that time. They somehow think that they can get the par money, keep the par money, and separately just get lots of fnma at today’s value (which won’t be the cheap for long). Is this the conversion they speak of? If they are nice I’ll sell them some commons but I’m thinking it won’t be cheap! Hope they don’t go spending all that’s par right away!!
Par is the max preferred can get and there is no guarantee of that. Commons however can get a special one time dividend to be determined by a bod elected by common shareholders as the bod has approved in the past. Common shareholders got 5. Dividends in 2006 and 5 more in 2007.
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