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.
Technology Stocks : ACII - AmeriChip International, Inc
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: rhoshariasha who wrote (931)1/20/2008 1:52:26 PM
From: rushlong  Read Replies (1) of 2396
 
Shane Americhip probably authorized the one billion preferred shares with possible future institutional investors in mind. While some personal investors own preferred stock they are often designed for insurance companies and other institutional investors in mind. These corporations enjoy a significant tax exclusion on dividends earned. I'm not sure if the the tax exclusion has changed but it was 70 percent. Trading in preferred is often inactive or in big blocks, meaning less liquidity as well. There are a number of different types of preferred stock but they all are a hybird security that combine features of both common stock and bonds. They all pay dividends which are usually a fixed percentage of par value. If Americhip authorized these preferred with the above in mind it could be quite a positive for investors. It means that they anticipate/hope to get institutional investors in the future and expect to have the earnings to pay the dividends. I don't know what Don said. I have him on ignore, don't want to waste my cyber space but for people who question what I say I didn't make the above up and I am not claiming to be an expert on preferred stock by any means. I got the above info from Barrons "Finance and Investment Handbook".
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News