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Non-Tech : Convertible Bonds

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To: Alex who wrote (71)6/7/2003 3:39:17 PM
From: David Lawrence   of 83
 
>>How common is it for the holders of these debentures to short the common stock?

Very common. Issuing convertible debt is an open invitation for the buyers to short the stock and play it for the spread. When (if) they convert depends on the interest rate, spread, conversion price, and maturity price. Too many variables there to make general assumptions.
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