Replies to post #7493 on Lehman Preferred Series "J" Preferred (f

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cmajr -- this should help:

http://www.dividenddetective.com/all_about_preferreds.htm

as for the size of the OS, that represents the "float", since there's no restricted share count. in the case of LEHJQ it's 66M, which means it's one of the more liquid lehman shares. that translates into "more actively traded". liquidity is helpful for those who want to get in and out of the stock.

in the event of a payout, all preferreds get paid at once, so if you add up the respective face values and multiply it by the various OS counts, this yields the amount of $$ required to give investors their settlement, whether that be a partial or full face payment. in this case, i believe the total required for all the preferred shares is $8.53B. preferreds are second in line.

you'll see according to that list, first in line are the capital trusts, which require $1.2B to pay all.

commons (LEHMQ) are paid last and the OS is huge, 689M shares, so i don't know of anyone who thinks there will be much $$ to be made on them. in most BKs common shares wind up worthless. jmho.