SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Canadian Options
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: william smith who wrote (624)7/19/1997 5:14:00 PM
From: Dave.S   of 1599
 
Will:

It all depends if the preferred stock has a convertible feature. Conversion features are added to senior securities as a "sweetner" when trying to minimize the cost of external financing. Without the convertible feature, the preferred shares usually fluctuate with interest rates.

The terms of the conversion will dictate how the preferred stock will do during a downturn in the common stock. The greater the conversion value premium the more the preferred will sell off. For instance, I had a convertible which lost one-half its value in 1987.

Dave
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2026 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News